|
Post by p2psavvy on Jan 3, 2019 12:31:36 GMT
Going back a while, on Mondays and 1st of months, Ratesetter used to wait until all of the repayments process had completed then it all went into the market at your set rate or market rate otherwise. Now, as the processing moves forward during these days, repayments do appear in your holding account.
I always check my account from about 8.00am and then hourly to see what repayments have been made. If any are available, I place orders using my judgment of what I think might get matched before the full processing event occurs. This almost always gets these repayments matched at better rates. Yesterday I was able to get over half of my repayments matched at 6.0%. Even if I guess wrong, these early orders still effectively jump the main queue from the automated reinvestments.
|
|
benaj
Member of DD Central
Posts: 4,857
Likes: 1,591
|
Post by benaj on Jan 3, 2019 14:30:45 GMT
My 8.9% got repaid today. 😂 At least it wasn't reinvested @ 1.8% rolling.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
Post by IFISAcava on Jan 3, 2019 14:36:42 GMT
My 8.9% got repaid today. 😂 At least it wasn't reinvested @ 1.8% rolling. Yeah, mine too. £1.04 interest! Well worth it.
|
|
Stonk
Stonking
Posts: 735
Likes: 658
|
Post by Stonk on Jan 3, 2019 15:05:16 GMT
My 8.9% got repaid today. 😂 At least it wasn't reinvested @ 1.8% rolling. Yeah, mine too. £1.04 interest! Well worth it. The interest seems to be 2 days short. Tsk tsk. I noticed something was wrong soon after I bought this loan: the RYI screen was offering me negative acrued interest the next day.
My £2K formed on 24 Dec 2017 should have earned approximately £2,000 x 0.089 x 10 / 365 = £4.87, but I've received £3.93. Hardly worth the bother complaining, but RS are usually spot-on with their calculations.
|
|
IFISAcava
Member of DD Central
Posts: 3,664
Likes: 2,988
|
Post by IFISAcava on Jan 3, 2019 15:12:45 GMT
Yeah, mine too. £1.04 interest! Well worth it. The interest seems to be 2 days short. Tsk tsk. I noticed something was wrong soon after I bought this loan: the RYI screen was offering me negative acrued interest the next day.
My £2K formed on 24 Dec 2017 should have earned approximately £2,000 x 0.089 x 10 / 365 = £4.87, but I've received £3.93. Hardly worth the bother complaining, but RS are usually spot-on with their calculations.
Our penalty for taking advantage of the erroneous offer?
|
|
|
Post by fiatlender on Jan 3, 2019 15:22:11 GMT
The interest seems to be 2 days short. Tsk tsk. I noticed something was wrong soon after I bought this loan: the RYI screen was offering me negative acrued interest the next day.
My £2K formed on 24 Dec 2017 should have earned approximately £2,000 x 0.089 x 10 / 365 = £4.87, but I've received £3.93. Hardly worth the bother complaining, but RS are usually spot-on with their calculations.
Isn't this something to do with xmas day and boxing day, as the borrower cannot withdraw, so we don't get those 2 days interest?
|
|
Stonk
Stonking
Posts: 735
Likes: 658
|
Post by Stonk on Jan 3, 2019 15:29:05 GMT
The interest seems to be 2 days short. Tsk tsk. I noticed something was wrong soon after I bought this loan: the RYI screen was offering me negative acrued interest the next day.
My £2K formed on 24 Dec 2017 should have earned approximately £2,000 x 0.089 x 10 / 365 = £4.87, but I've received £3.93. Hardly worth the bother complaining, but RS are usually spot-on with their calculations.
Isn't this something to do with xmas day and boxing day, as the borrower cannot withdraw, so we don't get those 2 days interest?
I guessed it was something to do with that, too. You normally get interest for every calendar day (including all holidays and weekends), so it must be a glitch to do with the fact there were public holidays immediately after the loan formation date. I still think it is incorrect, though. You do receive the weekend's interest for loans formed on a Friday.
|
|
|
Post by Ace on Jan 3, 2019 16:57:36 GMT
Yeah, mine too. £1.04 interest! Well worth it. The interest seems to be 2 days short. Tsk tsk. I noticed something was wrong soon after I bought this loan: the RYI screen was offering me negative acrued interest the next day.
My £2K formed on 24 Dec 2017 should have earned approximately £2,000 x 0.089 x 10 / 365 = £4.87, but I've received £3.93. Hardly worth the bother complaining, but RS are usually spot-on with their calculations.
I don't think it's valid to simply divide an AER or APR by 365 to get a daily rate, as this didn't allow for the compounding effect. I think you need to add 1 and take the 365th root to get the daily rate. Which for an APR of 8.9% would be the 365th root of 1.089 = 1.0002336159. You then raise that to the power 10 to get the rate for 10 days, so 1.00233861644. So you should get £4.67 interest on £2000 at 8.9% for 10 days. Still doesn't work out to what you actually received, sorry 😕. I'm sure someone will be along in a while to correct me!
|
|
Stonk
Stonking
Posts: 735
Likes: 658
|
Post by Stonk on Jan 3, 2019 18:12:17 GMT
The interest seems to be 2 days short. Tsk tsk. I noticed something was wrong soon after I bought this loan: the RYI screen was offering me negative acrued interest the next day.
My £2K formed on 24 Dec 2017 should have earned approximately £2,000 x 0.089 x 10 / 365 = £4.87, but I've received £3.93. Hardly worth the bother complaining, but RS are usually spot-on with their calculations.
I don't think it's valid to simply divide an AER or APR by 365 to get a daily rate, as this didn't allow for the compounding effect. I think you need to add 1 and take the 365th root to get the daily rate. Which for an APR of 8.9% would be the 365th root of 1.089 = 1.0002336159. You then raise that to the power 10 to get the rate for 10 days, so 1.00233861644. So you should get £4.67 interest on £2000 at 8.9% for 10 days. Still doesn't work out to what you actually received, sorry 😕. I'm sure someone will be along in a while to correct me!
What you said would be correct if the interest was added daily. In such a case, it is correct to take the 365th root, because that is precisely what compounds to make the original interest rate after a year. But here we have interest added annually (no compounding occurs), and the "daily interest rate" (i.e., the proportion of the year's interest that accrues per day) is 1/365-th of the annual rate.
Trust me, I'm a mathematician ...
|
|
|
Post by Ace on Jan 3, 2019 18:57:40 GMT
I don't think it's valid to simply divide an AER or APR by 365 to get a daily rate, as this didn't allow for the compounding effect. I think you need to add 1 and take the 365th root to get the daily rate. Which for an APR of 8.9% would be the 365th root of 1.089 = 1.0002336159. You then raise that to the power 10 to get the rate for 10 days, so 1.00233861644. So you should get £4.67 interest on £2000 at 8.9% for 10 days. Still doesn't work out to what you actually received, sorry 😕. I'm sure someone will be along in a while to correct me!
What you said would be correct if the interest was added daily. In such a case, it is correct to take the 365th root, because that is precisely what compounds to make the original interest rate after a year. But here we have interest added annually (no compounding occurs), and the "daily interest rate" (i.e., the proportion of the year's interest that accrues per day) is 1/365-th of the annual rate.
Trust me, I'm a mathematician ...
Ok, thanks (I used to be one too😂). I stand corrected. It's odd that the amount you received doesn't work out as an exact number of days!
|
|
Stonk
Stonking
Posts: 735
Likes: 658
|
Post by Stonk on Jan 3, 2019 19:21:03 GMT
What you said would be correct if the interest was added daily. In such a case, it is correct to take the 365th root, because that is precisely what compounds to make the original interest rate after a year. But here we have interest added annually (no compounding occurs), and the "daily interest rate" (i.e., the proportion of the year's interest that accrues per day) is 1/365-th of the annual rate.
Trust me, I'm a mathematician ...
Ok, thanks (I used to be one too😂). I stand corrected. It's odd that the amount you received doesn't work out as an exact number of days!
I think this is because the 8.9% is not exact. The actual AER on that loan was very slightly higher than 8.9%, but it rounded to 8.9%.
RS quote interest rates in tenths, but the fact that the resolution of a payment amount is 1 penny and the resolution of a payment date is 1 day, means that rates will never be absolutely precisely an exact tenth of a %.
|
|
|
Post by debaser on Jan 11, 2019 14:55:08 GMT
So does anyone know for sure if I can release my investment and then reinvest it without losing my £100 joining bonus?
I find the wording misleading in the terms and conditions: "You will qualify for a £100 bonus if you invest and put on loan a minimum of £1,000 within 8 weeks post registration and keep this invested for 365 days."
I think I probably have to leave it for 365 days without touching or I'll lose the bonus.
You guys are right that it doesn't say "fixed" anywhere, this was my inference from it saying "1 year", in my mind I thought it meant it was locked away for a year and I would get the advertised rate.
I didn't expand the panel to see that it says money can be repaid early and will be reinvested according to your settings. And I didn't even know it was possible to choose the reinvestment rate since this setting is hidden away on a page I never saw.
So this is my fault, I should have gone through every setting more closely. I suppose RateSetter want most people to be auto-reinvesting at the market rate which is why the website is set up the way it is. Unless you know that it's possible and go out of your way to change it, every new member probably has this happen without realising it.
|
|
|
Post by p2psavvy on Jan 11, 2019 16:46:13 GMT
Assuming that you complied with the original bonus deal, I don't think it matters if it is matched or not right now. You will always get early repayments. I think you just need to keep the money in Ratesetter, even if it is temporarily sitting in your holding account, prior to you deciding what rate and which market you wish to reinvest it in.
|
|
aju
Member of DD Central
Posts: 3,484
Likes: 917
|
Post by aju on Jan 11, 2019 17:37:26 GMT
So does anyone know for sure if I can release my investment and then reinvest it without losing my £100 joining bonus?
I find the wording misleading in the terms and conditions: "You will qualify for a £100 bonus if you invest and put on loan a minimum of £1,000 within 8 weeks post registration and keep this invested for 365 days."
I think I probably have to leave it for 365 days without touching or I'll lose the bonus.
You guys are right that it doesn't say "fixed" anywhere, this was my inference from it saying "1 year", in my mind I thought it meant it was locked away for a year and I would get the advertised rate.
I didn't expand the panel to see that it says money can be repaid early and will be reinvested according to your settings. And I didn't even know it was possible to choose the reinvestment rate since this setting is hidden away on a page I never saw.
So this is my fault, I should have gone through every setting more closely. I suppose RateSetter want most people to be auto-reinvesting at the market rate which is why the website is set up the way it is. Unless you know that it's possible and go out of your way to change it, every new member probably has this happen without realising it.
We both email RS separately and Mrs Aju got this response, if it helps. That is what I thought it meant when I read the T&C's but my response for clarity was even less conclusive than the above. Since it also probably means completely lent out (e.g. relend is on) I was concerned that holding back to get better rates might be a problem as well. Mrs Aju got £50 fairly early up for recommending me so she would be fine probably as we reinvested that into 5 yr as well and in my case I pumped in £50 in £10 testers too. I've been watching both our lending and returns transactions to make sure we don't go below the £1000 relent and we seem ok so far. That's probably a bit overkill but to make sure the £100 is safe and they can't renege on the deal its best to assume they will act like an insurance company and have a way out if they so desired. Its not that hard to do a quick SQL poke to check the user does not fall below the £1000 lent out during the cycle, assuming they have that capability of course. Not sure if this helps though as the definition of a "loan" is still not that clear. all that said we came here for a punt to learn how to better our Zopa rates so we are traying to both maximise them and lend out as quickly as possible. received this response.
|
|
|
Post by multiaccountmanager on Jan 12, 2019 8:25:22 GMT
I enquired about the £100 bonus terms some while ago. And I made further enquiries having received the stock answer. The upshot was that time waiting for rates to rise was ok as long as RS did not think it unreasonable. I had money at 5% in 1 year at the time and RS specifically made the example that as 5% had not been available for some time, a long period waiting for 5% would not be acceptable.
|
|