n
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Yet another Nick
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Post by n on Jul 7, 2017 10:06:15 GMT
Why not make a deposit of say £20 plus the pence needed to bring your balance to whole pounds, then invest the £21? I could do and have done on occasion, but that would still mean making the same number of bank transactions as currently, so unless deposits are cheaper for MT than withdrawals it wouldn't improve things from their perspective. Except they have the benefit of your increased investment.
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archie
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Post by archie on Jul 7, 2017 11:02:59 GMT
SophieThing I admit to being one of those OCD people who make micro withdrawals. I already know logically that it makes no sense, but psychologically I feel uncomfortable having uninvested funds on the platform, even pennies. The solution for me would be to allow investments that aren't round £s so that I could invest interest amounts as and when they are received (as on ABL) instead of withdrawing them to save or invest elsewhere. I would be unhappy with a theoretical situation where MT prevented me from both withdrawing and investing part of my funds. I'd hate that, much prefer pounds only. I also like to keep the total invested in each loan tranche to a multiple of £25 but that's probably just me (multiple of £100 even better).
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theshape
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Post by theshape on Jul 7, 2017 11:13:43 GMT
What does your My Loans page look like when you reinvest every interest payment? You'd end up with hundreds of loan parts. I gave up reinvesting every repayment as I didn't want dozens of £1 and £2 loan parts.
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archie
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Post by archie on Jul 7, 2017 11:19:43 GMT
What does your My Loans page look like when you reinvest every interest payment? You'd end up with hundreds of loan parts. I gave up reinvesting every repayment as I didn't want dozens of £1 and £2 loan parts. I have 299 entries currently. Easier to view the main 'Loans' page ordered by 'Invested'.
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n
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Yet another Nick
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Post by n on Jul 7, 2017 15:23:55 GMT
What does your My Loans page look like when you reinvest every interest payment? You'd end up with hundreds of loan parts. I gave up reinvesting every repayment as I didn't want dozens of £1 and £2 loan parts. Manny a mickle macks a muckle. I never look at 'My Loans'.
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lobster
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Post by lobster on Jul 7, 2017 15:55:39 GMT
Just withdrawn £900 from my account at 4.40pm on a Friday. Cash arrived in my bank account literally 2 mins later plus a personal phone call to confirm !! Now that's what I call service - cheers Ian
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niceguy37
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Post by niceguy37 on Aug 2, 2017 11:19:42 GMT
SophieThing I admit to being one of those OCD people who make micro withdrawals. I already know logically that it makes no sense, but psychologically I feel uncomfortable having uninvested funds on the platform, even pennies. The solution for me would be to allow investments that aren't round £s so that I could invest interest amounts as and when they are received (as on ABL) instead of withdrawing them to save or invest elsewhere. I would be unhappy with a theoretical situation where MT prevented me from both withdrawing and investing part of my funds. What to do with small amounts of interest and uninvested funds is something several platforms struggle with. AssetzCapital have a good reinvestment option that allows tiny amounts to be reinvested in targetted loans, but the downside with their model can be a great many micro transactions that are not actually worth bothering with (my lowest hundred transactions do not add up to 1p). But I do find myself logging on to MT most days to reinvest any whole pounds received in interest. SophieThing I would love it if you there was an option you could turn on to automatically reinvest interest payments. This reinvestment could be in any loans you already have that still have availability, or in a single lender-selected loan. This would significantly reduce the lender effort required, which is a significant factor in competing with more automated p2p platforms such as RateSetter, and result in a better return for lenders, just by the software being a bit smarter. If MT are concerned about the volume of lender loans parts with lots of little loan parts from interest re-investment, then when interest is paid on a particular loan, the system could merge all a lender's loan parts for that loan. Ideally automatic interest reinvestment would sweep up the whole account balance, including pence, but that might be too much of a software / model change. (Any interest payments on these small investments should be rounded down to whole pence to avoid the complications of fractions.)
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Post by SophieThing on Aug 2, 2017 12:31:18 GMT
Thanks for your suggestion niceguy37. All noted and will be added to our discussions on this point. Kind regards Sophie
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toast
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Post by toast on Aug 2, 2017 13:13:01 GMT
Yeah, I used to re-invest every £1 as soon as possible, but decided just to chill-out a bit. I now keep a small amount (around my "standard purchase amount") in my MT account as cash so that I can pounce on SM if I notice something rare come up. If this small amount of cash was in my current account instead then it wouldn't be earning any interest anyway.
This prevents all the dozens of tiny purchases cluttering up "my loans". I'm less likely to suffer "superman salami slicing" on the fractions of a penny in earnt interest. I just keep an eye on how much uninvested cash I have on MT when a new loan arrives or a renewal occurs. Easy!
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spiral
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Post by spiral on Aug 2, 2017 18:08:51 GMT
SophieThing I would love it if you there was an option you could turn on to automatically reinvest interest payments. This reinvestment could be in any loans you already have that still have availability, or in a single lender-selected loan. I would take this one step further in that I would like every loan to have a target setting which I can set once after doing my DD as to how much I would like of any given loan. I wouldn't then have to refer to my spreadsheet every time I want to make a purchase. If I then had a positive balance and some of my "below target" loans appeared, I'd like them to get purchased as per your idea. There'd have to be some sort of algorithm to determine the purchasers when buyers exceed sellers to ensure some sort of equality. Selling could also be done the same way by reducing the target value and any excess would get put up for sale. So much better to sell all of your holding (or even part) by selecting one value rather than having to click on multiple few pound loan parts until they're all gone.
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jonah
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Post by jonah on Aug 2, 2017 19:13:04 GMT
SophieThing I would love it if you there was an option you could turn on to automatically reinvest interest payments. This reinvestment could be in any loans you already have that still have availability, or in a single lender-selected loan. I would take this one step further in that I would like every loan to have a target setting which I can set once after doing my DD as to how much I would like of any given loan. I wouldn't then have to refer to my spreadsheet every time I want to make a purchase. If I then had a positive balance and some of my "below target" loans appeared, I'd like them to get purchased as per your idea. There'd have to be some sort of algorithm to determine the purchasers when buyers exceed sellers to ensure some sort of equality. Selling could also be done the same way by reducing the target value and any excess would get put up for sale. So much better to sell all of your holding (or even part) by selecting one value rather than having to click on multiple few pound loan parts until they're all gone. Sounds like AC. Of course you could implement to the nearest pound instead of femtopence, but the ability to set targets per loans is one of the reasons I have more cash on AC than any other p2p site.
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DeafEater
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Post by DeafEater on Aug 2, 2017 20:06:14 GMT
The AC look-a-like thing with target amounts doesn't work terribly well with the multi-tranche loans that we see on MT. For instance there are currently 10 tranches of MH and all of them are due to repay on the same day and none of them are more desirable or less risky than any other. To make buy targets work, MT is going to need much more obvious linking between loans and the asset they're secured on so you can place your target against the asset rather than a specific loan identifier. Even this isn't enough if there are multiple charges against the asset and investors get paid a higher rate for the second charge loan. For assets with multiple charges you'd also have to select the target LTV you're prepared to lend against. If there are multiple tranches with different end dates, that adds a further complication because when adding a target amount for the asset you'd also need to add criteria for the minimum time to run on any purchase to ensure you didn't automatically buy some of a tranche that was due to repay next week.
That's starting to look like a rather hefty and complicated redesign...
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archie
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Post by archie on Aug 3, 2017 6:10:30 GMT
Keep it simple.
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spiral
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Post by spiral on Aug 3, 2017 7:23:19 GMT
To make buy targets work, MT is going to need much more obvious linking between loans and the asset they're secured on so you can place your target against the asset rather than a specific loan identifier. I wouldn't place loan targets against loan identifiers, just individual loans. I agree if you wanted to set a target per loan of £100 but max per prefix of £500 then that is way too complicated. I would set my target per loan only. I agree that multiple tranches of the same loan are an issue but I find that issue even worse when trying to manually assess it especially when it returns to FFF. I have said many times before that Lendy's model of merging tranches into one big loan after launch is a much better option. This thread started out about small withdrawals, I don't make small withdrawals but I can't be bothered to log in everyday to see how much I have on account to invest either. What happens with me is when I log in, if there is nothing I want but I have a reasonable sum, I then withdraw it. The auto invest option for me would therefore keep more funds on account as until I am fully invested, there would be no point in withdrawing funds.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Aug 3, 2017 8:02:11 GMT
Offer interest on cash amounts up to say £25 and set this as minimum free transfer. Bit of jiggery pokery could make it cost neutral to you and satisfy the psychological needs of those that require microcontrol. A fixed charge for withdrawing smaller sums could present pr issues. I withdrew 2 pence and got charged £1 to do so! Shock horror we are into pay day lending territory with the redtops and the highly opinionated press controlled by the government barons. More regulation will go up the shout! Man the barricades! Not an easy one to solve Sophie.
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