ianj
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Post by ianj on Apr 8, 2014 11:56:22 GMT
Just started lending with RateSetter.
I've had a look through the FAQ's, and elsewhere, but haven't as yet found any info on how the potentially minute sums resulting from multiple reinvestments is handled.
For example, I have a contract for £159.03p at 5.7% over 60 months with a monthly installment of £2.94, which, if reinvested automatically at the same rate, would result in an installment of £0.05586, which if reinvested......
An unsustainable sequence from an investor's perspective.
Have I missed something obvious?.
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spiral
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Post by spiral on Apr 8, 2014 13:02:26 GMT
Reinvestment only occurs when you have accrued a minimum of £10 so in your scenario (assuming no other repayments coming in), it wouldn't occur until the fourth month.
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Post by p2plender on Apr 8, 2014 13:03:46 GMT
not positive but I think small accounts go into holding account. I'm sue wkev will tell you the answer though.
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markr
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Post by markr on Apr 8, 2014 13:18:24 GMT
Spiral is right, the minimum reinvestment is £10. Repayments will sit in your holding account until you have accrued at least £10 worth.
An account left alone with automatic reinvestment on will eventually decay into lots and lots of little ~£10 contracts.
EDIT: Actually only true for accounts where the average repayments per day will be £10 or less
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ianj
Member of DD Central
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Post by ianj on Apr 8, 2014 13:27:22 GMT
Reinvestment only occurs when you have accrued a minimum of £10 so in your scenario (assuming no other repayments coming in), it wouldn't occur until the fourth month. I currently have 13 contracts with repayments already spread over a month so that saves me potentially having to check every day. Thank you.
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Post by westonkevRS on Apr 8, 2014 17:39:10 GMT
I love this forum!
Thanks guys, Kevin.
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spiral
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Post by spiral on Apr 9, 2014 8:55:32 GMT
I love this forum! Thanks guys, Kevin. Its like Wikipedia for p2p. (Wikipeerdia)
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Post by GSV3MIaC on May 4, 2014 7:32:48 GMT
I guess we should all thank FC for causing it too get re_born in this form. Certainly nice to have all the funds in one place .. Just a shame they don' t all have reps here FC for instance).
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