lara
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Post by lara on Sept 4, 2018 6:41:48 GMT
There has recently been a trend of an increasing number of daily transactions on Rolling, and I noticed today it hit 6 figures! Previous to the forced reinvestment of monthly repayments these volumes were typically 4 or low 5 figures, so have increased by a factor of 10 in 3 months. Being the partial monthly repayment amounts, the value of the individual contracts is inherently relatively small (<5% of each investment), so the system has caused a magnitude increase in transactions whose individual value is decreased by an even greater proportion. It seems this could lead to another magnitude increase in daily transactions in the foreseeable future as reinvestments get further splintered, meaning the system might have to deal with a 7 figure volume - presumably RateSetter have factored that in to their projections?
[It may be that the transaction increase will be limited to a maximum of 30 times rather than the 100+ suggested above, as multiple same-day repayments seem to be amalgamated]
Whilst I can understand the rationale for stability (and in fact prefer) that Rolling investments are matched for their term, (and accept the business imperative for the 14 day ban) I remain to be convinced that either the original or new proposed way of forcing repayment reinvestment is necessary for the business continuity or possibly even justifiable on overall cost/benefit analysis (not limited to processing costs) - which is certainly a cause of major contention for a minor proportion of volume.
Whilst it's true that someone will always complain about anything, I'm sure for every individual who bothers to write a justified dissatisfaction there are several who eventually just quietly "vote with their feet" and move on. Maybe that contributed to the BH rate spike?
Having said all that, it doesn't significantly affect me as I don't forsee an immediate need for any withdrawals, and have now moved most of my RS funds into the term schemes for generally better rates and significantly reduced effort.
They didn't think things through the first time and they clearly haven't done so this time either.
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rscal
Posts: 923
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Post by rscal on Sept 4, 2018 8:48:58 GMT
There has recently been a trend of an increasing number of daily transactions on Rolling, and I noticed today it hit 6 figures! Previous to the forced reinvestment of monthly repayments these volumes were typically 4 or low 5 figures, so have increased by a factor of 10 in 3 months. Being the partial monthly repayment amounts, the value of the individual contracts is inherently relatively small (<5% of each investment), so the system has caused a magnitude increase in transactions whose individual value is decreased by an even greater proportion. It seems this could lead to another magnitude increase in daily transactions in the foreseeable future as reinvestments get further splintered, meaning the system might have to deal with a 7 figure volume - presumably RateSetter have factored that in to their projections?
[It may be that the transaction increase will be limited to a maximum of 30 times rather than the 100+ suggested above, as multiple same-day repayments seem to be amalgamated]
Whilst I can understand the rationale for stability (and in fact prefer) that Rolling investments are matched for their term, (and accept the business imperative for the 14 day ban) I remain to be convinced that either the original or new proposed way of forcing repayment reinvestment is necessary for the business continuity or possibly even justifiable on overall cost/benefit analysis (not limited to processing costs) - which is certainly a cause of major contention for a minor proportion of volume.
Whilst it's true that someone will always complain about anything, I'm sure for every individual who bothers to write a justified dissatisfaction there are several who eventually just quietly "vote with their feet" and move on. Maybe that contributed to the BH rate spike? Having said all that, it doesn't significantly affect me as I don't forsee an immediate need for any withdrawals, and have now moved most of my RS funds into the term schemes for generally better rates and significantly reduced effort.
They didn't think things through the first time and they clearly haven't done so this time either. Yes it has the 'ad hoc' feel about it. Speaking to my sister yesterday, also a user of RS, she didn't know how withdrawals are supposed to work. My thought was along the lines: "RS has locked in the 'great unwashed' @ 2.5-2.9% for the sake of reputational damage*. They have lost out somewhat to those that have worked out how to 'game' the new rules successfully but overall their profit is up in the short term. What does that mentality say about this company? Either they are 'dim but nice' (which would be worrying in itself) or they are hard-bitten cynics (which is only marginally better) that will sell their grandmother. Or, again, "a little of column A and a little of column B"!
*Actually, on second thoughts, they have shaved about 1 point off the Rolling - maybe 0.7 - but now we are seeing even higher rates than before June. Assuming this conitnues after September it's starting to look more like 'column A'..
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Post by befuddled on Sept 4, 2018 14:05:26 GMT
But you can still swtich from Everyday to ISA (even RS are saying that.) If you aren't using all your ISA allowance, that is (and 20K is small change to everyone on here, it seems!) ... and as long as your current-year IFISA isn't somewhere else. Can you switch without actually withdrawing the funds from RS and then re-sending to the other account.....
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ceejay
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Post by ceejay on Sept 4, 2018 15:11:49 GMT
... and as long as your current-year IFISA isn't somewhere else. Can you switch without actually withdrawing the funds from RS and then re-sending to the other account..... Not sure what you're asking here. If you want to transfer current-year ISA subscriptions to a new provider then you must contact the new provider and ask them to arrange the transfer. They will pull the money (all of it, if it's current-year) from your old provider.
You cannot withdraw current-year cash from one ISA provider and then pay it in as new cash to another provider of the same type as that would mean you'd made contributions to two ISAs of that type in one tax year, which isn't allowed.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Sept 4, 2018 15:15:28 GMT
Can you switch without actually withdrawing the funds from RS and then re-sending to the other account..... Yes you can.
Once logged in simply switch to your RS ISA account and choose 'Deposit'. You are then given a range of options, one of which is moving money from your Everyday account. NB. I have only ever used this facility to move money sitting in my ED Holding. All other options appear to be available though but presumably if it involves moving funds that are already lent out you will incur the relevant cash-out fees.
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Post by befuddled on Sept 5, 2018 5:47:49 GMT
Thank You Cougar - that's exactly what I meant. I ended up having mostly low rate rolling loans, (and many of them), wanted to flush the lot out and start again but not at the expense of 2 weeks interest, so transferred rolling/ISA to rolling/ED, with a view to transfer back after 2 weeks when the rates are right. I couldn't find the option you mentioned so withdrew to current account - but will use the deposit/transfer option next time...
Thanks
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lara
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Post by lara on Sept 5, 2018 5:57:40 GMT
Thank You Cougar - that's exactly what I meant. I ended up having mostly low rate rolling loans, (and many of them), wanted to flush the lot out and start again but not at the expense of 2 weeks interest, so transferred rolling/ISA to rolling/ED, with a view to transfer back after 2 weeks when the rates are right. I couldn't find the option you mentioned so withdrew to current account - but will use the deposit/transfer option next time... Thanks I'm not sure if I am understanding you correctly but with ISA money, once you have removed money from the ISA wrapper, you have effectively decreased your annual allowance by the amount you have withdrawn. So if you transferred £1,000 to a non ISA account, you will then only have a total of £19,000 ISA allowance to use for the year.
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Post by stuart543 on Sept 5, 2018 7:23:44 GMT
else your money is reinvested forever or until it falls below £10, when it's then put into holding? I would be grateful if someone could please clarify this point as I cannot find it anywhere on ratesetter. If I currently have a rolling loan with say £11 capital outstanding over a 6 months remaining term, then on the next scheduled repayment date, will the full capital be repaid as the scheduled repayment will bring the outstanding below £10? I had previously assumed that it would continue to amortise over the remaining term, leaving a small illiquid loan. Thanks
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Post by fiatlender on Sept 5, 2018 7:48:02 GMT
else your money is reinvested forever or until it falls below £10, when it's then put into holding? I would be grateful if someone could please clarify this point as I cannot find it anywhere on ratesetter. If I currently have a rolling loan with say £11 capital outstanding over a 6 months remaining term, then on the next scheduled repayment date, will the full capital be repaid as the scheduled repayment will bring the outstanding below £10? I had previously assumed that it would continue to amortise over the remaining term, leaving a small illiquid loan. Thanks As the next monthly capital repayment would be £1.83, this would leave £9.17 outstanding, so RS would pay the full £11 back along with the one month interest.
Edit: Just checking my own loans from last month. I had one for £10.15 fully repaid and not automatically re-lent by RS.
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Post by stuart543 on Sept 5, 2018 8:11:29 GMT
Thanks
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oik
Member of DD Central
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Post by oik on Sept 5, 2018 8:19:41 GMT
From 5 September, you will be able to set your own rate on both reinvested capital and interest, or choose to automatically match at the prevailing Market Rate. Seems to me that today is 5 September, and has been for the last 9 hours, but on my account there still appears to be zero re-investment options for rolling other than to accept Ratesetter's very contrived version of 'market rate'. They even make banks look efficient.
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lara
Posts: 345
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Post by lara on Sept 5, 2018 8:22:26 GMT
From 5 September, you will be able to set your own rate on both reinvested capital and interest, or choose to automatically match at the prevailing Market Rate. Seems to me that today is 5 September, and has been for the last 9 hours, but on my account there still appears to be zero re-investment options for rolling other than to accept Ratesetter's very contrived version of 'market rate'. They even make banks look efficient. Oopsie!
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rscal
Posts: 923
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Post by rscal on Sept 5, 2018 9:03:58 GMT
From 5 September, you will be able to set your own rate on both reinvested capital and interest, or choose to automatically match at the prevailing Market Rate. Seems to me that today is 5 September, and has been for the last 9 hours, but on my account there still appears to be zero re-investment options for rolling other than to accept Ratesetter's very contrived version of 'market rate'. They even make banks look efficient. Yep. Just checked mine and there is still no option is set to your own rate nor to specify 'Capital and Interest' or 'Capital Only' as the move-to-holding option.
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Post by befuddled on Sept 5, 2018 10:32:29 GMT
Thank You Cougar - that's exactly what I meant. I ended up having mostly low rate rolling loans, (and many of them), wanted to flush the lot out and start again but not at the expense of 2 weeks interest, so transferred rolling/ISA to rolling/ED, with a view to transfer back after 2 weeks when the rates are right. I couldn't find the option you mentioned so withdrew to current account - but will use the deposit/transfer option next time... Thanks I'm not sure if I am understanding you correctly but with ISA money, once you have removed money from the ISA wrapper, you have effectively decreased your annual allowance by the amount you have withdrawn. So if you transferred £1,000 to a non ISA account, you will then only have a total of £19,000 ISA allowance to use for the year. I don't believe this is the case (it used to be) - now you can remove and return money to the same ISA in the same (current) year. I had £20K in ISA - removed some yesterday and was able to put some back today (just tested after reading your message) It worked. So this goes to someway mitigate the 14 days ban - though has it's obvious drawbacks...
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Post by richardthe4th on Sept 5, 2018 10:44:31 GMT
Seems to me that today is 5 September, and has been for the last 9 hours, but on my account there still appears to be zero re-investment options for rolling other than to accept Ratesetter's very contrived version of 'market rate'. They even make banks look efficient. Yep. Just checked mine and there is still no option is set to your own rate nor to specify 'Capital and Interest' or 'Capital Only' as the move-to-holding option. Me too....maybe they were fibbing when they said that it would change on 5th??
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