oik
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Post by oik on Mar 31, 2016 9:42:49 GMT
Every day this week I've had a few thousand needing to be reinvested for what Ratesetter calls a "1 Month Term".
That's not because I intended it that way but due to the erratic way Ratesetter lends out money that's intended to be lent for a month. Yesterday they continued the pattern so that a few thousand I agreed to lend for one month was actually lent for 5 different periods ranging from 5 days to 5 weeks. So some money lent out on Wednesday will be back out again by Monday and other money also supposedly lent for a month won't be repaid for 5 weeks.
In a legal context a month normally refers to a calendar month but elsewhere it can be used to mean a lunar month or 4 weeks. In Ratesetterland it means whatever they want it to mean and there's no way of knowing prior to lending. With money bouncing up almost every day it makes keeping track nigh impossible without making it a full time hobby. Is there a method in their madness?
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alender
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Post by alender on Mar 31, 2016 10:51:37 GMT
Every day this week I've had a few thousand needing to be reinvested for what Ratesetter calls a "1 Month Term". That's not because I intended it that way but due to the erratic way Ratesetter lends out money that's intended to be lent for a month. Yesterday they continued the pattern so that a few thousand I agreed to lend for one month was actually lent for 5 different periods ranging from 5 days to 5 weeks. So some money lent out on Wednesday will be back out again by Monday and other money also supposedly lent for a month won't be repaid for 5 weeks. In a legal context a month normally refers to a calendar month but elsewhere it can be used to mean a lunar month or 4 weeks. In Ratesetterland it means whatever they want it to mean and there's no way of knowing prior to lending. With money bouncing up almost every day it makes keeping track nigh impossible without making it a full time hobby. Is there a method in their madness? You can also add in some early repayments and the volatile interest rates to make it even more fun. Unless there is a good premium on the rates I find Wellesley one month a better place for short term funds. Pays 3.35% as soon as you deposit the money, stays in as long as you like, you can give one months notice to get at the funds and no loss of interest while transferring money out. I lose between 1 and 4 days interest on transfers from RS, 4 days occur if funds are transferred on Friday and do not hit my account until after 5pm. Although RS one month rates can be above Wellesley, add in loss of interest while waiting for match, the transfer times and the time I have to spend on RS for me the 3.35% looks a much better bet.
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Post by lb on Mar 31, 2016 11:00:37 GMT
alender do you think Wellesley at 3.35% (one month notice) is better than Assetz QAA at 3.75% with instant access? Do you think Wellesley is safer?
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alender
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Post by alender on Mar 31, 2016 12:05:35 GMT
alender do you think Wellesley at 3.35% (one month notice) is better than Assetz QAA at 3.75% with instant access? Do you think Wellesley is safer? I really have no idea, I like Wellesley only for the 1 month, they have a provision fund, simple to use and have a good rating on 4thWay. I have not looked at Assetz yet but will put it onto my things to do, would be interested on your view. So far I am using RS when I can get a decent rate which is becoming difficult in the 5 year market and impossible in the 3 year, Wellesley for short term funds and looking more now to Funding Circle A+ loans. Also like the look of ArchOver insured loans but platform a bit too new at present. Current RS rates for me do not reflect the risk, complexity of the platform (simple from the outside, complex when looked in more depth) especially the way rates are set. I am coming to the opinion that if I spent the time following RS rates and trying to get a match on my equity portfolio it would be give me better returns.
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alender
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Post by alender on Mar 31, 2016 12:22:28 GMT
Yesterday they continued the pattern so that a few thousand I agreed to lend for one month was actually lent for 5 different periods ranging from 5 days to 5 weeks. So some money lent out on Wednesday will be back out again by Monday and other money also supposedly lent for a month won't be repaid for 5 weeks. It is a lottery on the length of loan you are allocated, however the number short term loans have been increased by the free sell out in the one month market. Short period loans are uneconomic for the investor unless you get lucky and there is a good rate on the day of maturity as the time it takes to get funds out of RS or wait for the rate to increase. I had some which were for 3 and 4 days and one of these matured over the weekend. IF RS know these loans are for a short period, say less than a week I do not believe these should be placed this way on the one month market, the investor should have the option to refuse these loans. As RS use the one month market to fund longer term loans they could lump all of these short term loans together and fund them from money they raise in one month market.
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Post by Financial Thing on Apr 3, 2016 8:55:08 GMT
Every day this week I've had a few thousand needing to be reinvested for what Ratesetter calls a "1 Month Term". That's not because I intended it that way but due to the erratic way Ratesetter lends out money that's intended to be lent for a month. Yesterday they continued the pattern so that a few thousand I agreed to lend for one month was actually lent for 5 different periods ranging from 5 days to 5 weeks. So some money lent out on Wednesday will be back out again by Monday and other money also supposedly lent for a month won't be repaid for 5 weeks. In a legal context a month normally refers to a calendar month but elsewhere it can be used to mean a lunar month or 4 weeks. In Ratesetterland it means whatever they want it to mean and there's no way of knowing prior to lending. With money bouncing up almost every day it makes keeping track nigh impossible without making it a full time hobby. Is there a method in their madness? Also take a look at Landbay's monthly access offering @ 3.94% handsoff reinvestment. AC recently raised their target monthly rate to 4.25%. Remember it's just a target rate though.
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investibod
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Post by investibod on Apr 3, 2016 12:13:54 GMT
AC recently raised their target monthly rate to 4.25%. Remember it's just a target rate though. AC 4.25% rate is just for April. It would theoretically go back to 3.75% in May. although they have hinted about something new happening at the end of April. Saying it is a target is legalese. It has always achieved target so far.
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oik
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Post by oik on Apr 4, 2016 15:47:59 GMT
I lose between 1 and 4 days interest on transfers from RS, 4 days occur if funds are transferred on Friday and do not hit my account until after 5pm. Despite saying in their FAQs www.ratesetter.com/lend/faq: "Once the money is in your Holding Account, it can be withdrawn to your bank using the methods below.
Withdrawal Method Credited to Bank Account Fees
Faster Payments Next Day by 4pm Free"I've yet to see a repayment arrive by 4pm, i.e. before the end of the banking day: normally seems timed to be just after and sometimes after 6pm. I assume there's a reference in their terms somewhere about their unique definition of "a month" but I'm surprised if the FCA were aware of some of Ratesetter's dodgier wheezes and still content for them get away with them. How's their application to get beyond FCA Interim registration going I wonder? Not sure how widespread this new version of Spanish practices is in the P2P industry but needs looking at if use of P2P becomes considered as mainstream by retail savers/investors. IF RS know these loans are for a short period, say less than a week I do not believe these should be placed this way on the one month market, the investor should have the option to refuse these loans. Fully agree as it's clearly not the contract the lender should expect. I am coming to the opinion that if I spent the time following RS rates and trying to get a match on my equity portfolio it would be give me better returns. Agree again. It an option for holding cash short-term - provided full use of better paying high-interest current accounts has already been made. Longer term it rarely makes much sense to hold so much cash.
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spiral
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Post by spiral on Apr 4, 2016 17:16:00 GMT
IF RS know these loans are for a short period, say less than a week I do not believe these should be placed this way on the one month market, the investor should have the option to refuse these loans. Fully agree as it's clearly not the contract the lender should expect. But to do that would prevent anyone from ever being able to sellout.
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oik
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Post by oik on Apr 7, 2016 16:09:47 GMT
But to do that would prevent anyone from ever being able to sellout. Obviously helps their marketing to offer that even if it remains somewhat obscure what the charges/costs are. Would have thought it was down to Ratesetter to find the mechanism to do that without misleading lenders who offer money for a specific period only find afterwards that the reality is completely different. I'd welcome the FCA considering whether there should be far greater transparency before they they offer full authorisation to the company.
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Post by lb on Apr 8, 2016 8:45:52 GMT
But to do that would prevent anyone from ever being able to sellout. Obviously helps their marketing to offer that even if it remains somewhat obscure what the charges/costs are. Would have thought it was down to Ratesetter to find the mechanism to do that without misleading lenders who offer money for a specific period only find afterwards that the reality is completely different. I'd welcome the FCA considering whether there should be far greater transparency before they they offer full authorisation to the company. If you are lending in the newly named 'rolling' market then where do you think your money is going? only into 30 day loans? that all expire on the same day? and you want all your money loaned immediately? to good borrowers?  if you dont like RS dont use it
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Post by chielamangus on Apr 8, 2016 10:57:50 GMT
This is old hat. Discussions on RS's 'month' can be found in old threads, as also their market power in determining the rate - nobody gets a monthly loan, so investors are lending to RS who on the demand side always put in low interest rates for a term to suit themselves. Obviously - this increases their margins over what is lent out. It ain't a fair market between borrowers and lenders with RS just being the intermediary.
And before anyone comes back with the standard riposte on this forum that if you don't like it, don't invest, I would add that these market faults should be highlighted even if some people don't give a damn, AND I am not investing any more with RS but it takes time to wind down one's position
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Apr 8, 2016 12:16:54 GMT
Hmm... I've managed to get 3.9%, 4.0% and even 4.4% on "monthly" market, so no that low. So maybe the market is not 100% transparent but I have no reasons to complain.
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