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Post by df on Apr 25, 2019 21:05:04 GMT
LW pays 6.5% (5-year product). Cash drag for new money varies from 7 to 30 days (don't know the current situation, you can ask on LW board), but reinvestments are quicker as they have priority). I've never sold on LW, but I'd imagine it's instant, however there's 0.6% fee for selling. One of the lower risk p2p platforms - LW is 5 years old and no investor lost any money yet. It was between LW and AC...if you took in the 0.6% selling fee, that made the return 5.9% (if I am calculating it right). Add in the cash drag I read about on LW, this made AC seem more or equally attractive Your return on LW will depend on the length of your investment. You won't get 5.9% if you withdraw in 90 days. I think AC made a clever move creating 5.75% 90-day account. The offer is very competitive in current p2p market.
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number5
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Post by number5 on Apr 25, 2019 21:18:41 GMT
It was between LW and AC...if you took in the 0.6% selling fee, that made the return 5.9% (if I am calculating it right). Add in the cash drag I read about on LW, this made AC seem more or equally attractive Your return on LW will depend on the length of your investment. You won't get 5.9% if you withdraw in 90 days. I think AC made a clever move creating 5.75% 90-day account. The offer is very competitive in current p2p market. In which case it seems AC is the best option for my cash drag...once my rolling system is in place by July!
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Post by Ace on Apr 25, 2019 21:20:39 GMT
It was between LW and AC...if you took in the 0.6% selling fee, that made the return 5.9% (if I am calculating it right). Add in the cash drag I read about on LW, this made AC seem more or equally attractive Your return on LW will depend on the length of your investment. You won't get 5.9% if you withdraw in 90 days. I think AC made a clever move creating 5.75% 90-day account. The offer is very competitive in current p2p market. Why not have both? AC's access accounts are good if you really will need access; LW is good for a higher rate if you probably won't, but want the comfort of being able to access your funds early in an emergency (normal conditions prevailing, and all that jazz). EDIT: LW currently quote 1 to 7 days cash drag.
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number5
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Post by number5 on Apr 25, 2019 21:54:33 GMT
Your return on LW will depend on the length of your investment. You won't get 5.9% if you withdraw in 90 days. I think AC made a clever move creating 5.75% 90-day account. The offer is very competitive in current p2p market. Why not have both? AC's access accounts are good if you really will need access; LW is good for a higher rate if you probably won't, but want the comfort of being able to access your funds early in an emergency (normal conditions prevailing, and all that jazz). EDIT: LW currently quote 1 to 7 days cash drag. Good point. I think now that I have started the 90 day rolling system, will get that flowing then will try out LW if I still have more cash drag. LW SM is fairly liquid I assume then? Are the loans 5 years...in which case you most probably would have to take the 0.6% hit
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Post by Ace on Apr 25, 2019 22:59:42 GMT
Why not have both? AC's access accounts are good if you really will need access; LW is good for a higher rate if you probably won't, but want the comfort of being able to access your funds early in an emergency (normal conditions prevailing, and all that jazz). EDIT: LW currently quote 1 to 7 days cash drag. Good point. I think now that I have started the 90 day rolling system, will get that flowing then will try out LW if I still have more cash drag. LW SM is fairly liquid I assume then? Are the loans 5 years...in which case you most probably would have to take the 0.6% hit Yes, it's currently liquid. The 1 to 7 day cash drag is due to the queue of people waiting to deploy funds. It's these people that would buy your loans when you want to cash out. LW currently pay 5% for a 3 year term, and 6.5% for a 5 year term. It's a 0.6% quick withdraw fee for both. So, if you took the 5 year product and sold after 2 years you would average 6.2%. If you need some cash in slower time you can switch relending off and withdraw interest and capital repayments fee-free as they come in. You would only need to pay the 0.6% fee on the whole sum if you needed it all back in one go at zero notice. One word of warning: if they put rates up and you need to sell out early, you will also have to compensate the new borrower for the difference in the rates.
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sl75
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Post by sl75 on Apr 26, 2019 7:20:19 GMT
Yes, and AC have said in another thread awhile back that they're aware that some of their AA a/c Users request withdrawals then cancel, I took it to mean that no action against it yet but might do if it gets out of hand. If AC consider it a problem that needs a fix, a relatively simple "fix" would be to have a lower interest rate during the notice period (e.g. at least as high as the 30DAA rate, but lower than the regular 90DAA rate).
That way they're only paying the top interest rate on money that they know will not be withdrawn for at least 90 days, and can plan accordingly for their activities from the access accounts (determining how much and when of each loan to buy, sell, underwrite, etc.).
In order to be treating customers fairly, they'd presumably need to give notice and allow customers to withdraw under the present T&Cs (i.e. the lower rate only takes effect for withdrawals initiated after a specified date).
Then we'd have a choice - either leave the money untouched for the top interest rate, or have the flexibility of regular options to withdraw part of the balance, but with a reduced interest rate on that portion.
It'd probably be good news for most users of the account, as it would perhaps replace part or all of the interest rate reduction that is strongly implied to be on the cards following the initial "introductory" period.
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IFISAcava
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Post by IFISAcava on May 7, 2019 15:08:44 GMT
Over the weekend I made a withdrawal request 2 weeks early in error, which would have eliminated my eligible balance for the 90-day promotion 1% cashback. I immediately contacted them within minutes to cancel this. However, they went ahead with the withdrawal and said it couldn't be cancelled - so I have lost my cashback bonus! My fault, but one might have had a slightly more sympathetic response as my intention was to keep the balance there for the required duration and I requested the transfer be cancelled before they actioned it!
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IFISAcava
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Post by IFISAcava on May 7, 2019 15:31:34 GMT
Over the weekend I made a withdrawal request 2 weeks early in error, which would have eliminated my eligible balance for the 90-day promotion 1% cashback. I immediately contacted them within minutes to cancel this. However, they went ahead with the withdrawal and said it couldn't be cancelled - so I have lost my cashback bonus! My fault, but one might have had a slightly more sympathetic response as my intention was to keep the balance there for the required duration and I requested the transfer be cancelled before they actioned it! I should also say that it does also rather call into question the utility of the initial e-mail they send when you request a withdrawal asking you to contact them if the request was not authorised, as it seems the transfer is done even if you respond immediately asking for it to be cancelled!
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rscal
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Post by rscal on May 7, 2019 18:10:34 GMT
Over the weekend I made a withdrawal request 2 weeks early in error, which would have eliminated my eligible balance for the 90-day promotion 1% cashback. I immediately contacted them within minutes to cancel this. However, they went ahead with the withdrawal and said it couldn't be cancelled - so I have lost my cashback bonus! My fault, but one might have had a slightly more sympathetic response as my intention was to keep the balance there for the required duration and I requested the transfer be cancelled before they actioned it! I should also say that it does also rather call into question the utility of the initial e-mail they send when you request a withdrawal asking you to contact them if the request was not authorised, as it seems the transfer is done even if you respond immediately asking for it to be cancelled! They/you have misread the Terms and Conditions: 4 and 5 can only be construed as meaning you can change your mind about the request provided you do so before the end of the eligibility period. It's revokable IOW. Any other opinions pls?
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IFISAcava
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Post by IFISAcava on May 7, 2019 22:10:37 GMT
I should also say that it does also rather call into question the utility of the initial e-mail they send when you request a withdrawal asking you to contact them if the request was not authorised, as it seems the transfer is done even if you respond immediately asking for it to be cancelled! They/you have misread the Terms and Conditions: 4 and 5 can only be construed as meaning you can change your mind about the request provided you do so before the end of the eligibility period. It's revokable IOW. Any other opinions pls? They suggested that clause 5 only applied to funds within the 90-day account. Maybe chris can confirm this. "The withdrawal you have made out has affected your eligibility as your total holdings have been reduced by the £5000.00 and therefore the cashback amount has been reduced accordingly." I am only losing £50, so I'll survive, but I guess be warned that there is no leniency to cancel a withdrawal from Assetz even if you do it immediately.
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warn
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Post by warn on May 7, 2019 22:19:17 GMT
They suggested that 5 only applied to funds within the 90-day account. They not only suggest it, they explicitly state it in the definitions in the T&C: Withdrawal Instruction – giving 90 days’ notice to withdraw your funds by using the ‘withdraw’ function in the 90-Day Access Account in your dashboard.
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IFISAcava
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Post by IFISAcava on May 7, 2019 23:02:15 GMT
They suggested that 5 only applied to funds within the 90-day account. They not only suggest it, they explicitly state it in the definitions in the T&C: Withdrawal Instruction – giving 90 days’ notice to withdraw your funds by using the ‘withdraw’ function in the 90-Day Access Account in your dashboard.funnily enough, then, I haven't made a withdrawal instruction as the funds weren't withdrawn from the 90-day account. but I can't believe that replacing the now mistakenly-withdrawn funds would reinstate my eligible cashback balance, as I think that is permanently reduced (although it isn't immediately clear reading the T&Cs where that is explicitly stated, when using all the definitions from the beginning of the T&Cs).
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Post by figtree on May 8, 2019 6:20:41 GMT
The rules are clear on a withdrawal request from the 90d account Into another AC account. That can be cancelled and you still get the bonus.
But for clarity for other users, I think what you’re saying here is you withdrew cash from one of your other AC accounts back to your bank?
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Post by chris on May 8, 2019 6:49:34 GMT
IFISAcava - it sounds like you're talking about a cash withdrawal from the platform, rather than a withdrawal from the 90 day account. With the latter that's something you can cancel via the dashboard. The former is more complex though as there's a race condition between requesting a withdrawal, it being processed, and letting lenders request a cancellation. When funds are released from the client money account there is an asynchronous multi-step process involving generating data files, uploading them to our bank's systems, authorising their payment via the bank's dashboard, marking off paid transactions on our system, before reconciling the client money system against the end of day bank statement. If we allowed cancellations then there's a window where funds could already have been released by the bank before our system is updated which would allow a cancellation to occur, funds to be credited back to a lender that are no longer present in the client money account. That would be a regulatory breach. For the most part I would therefore not expect to allow any cancellations of withdrawals off platform once they have been submitted, and authorised via 2FA, unless there is a report of fraud or an account being hacked where we'd then need to follow a procedure involving insurance companies and pausing all withdrawals until we were comfortable, etc.
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IFISAcava
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Post by IFISAcava on May 8, 2019 8:32:48 GMT
IFISAcava - it sounds like you're talking about a cash withdrawal from the platform, rather than a withdrawal from the 90 day account. With the latter that's something you can cancel via the dashboard. The former is more complex though as there's a race condition between requesting a withdrawal, it being processed, and letting lenders request a cancellation. When funds are released from the client money account there is an asynchronous multi-step process involving generating data files, uploading them to our bank's systems, authorising their payment via the bank's dashboard, marking off paid transactions on our system, before reconciling the client money system against the end of day bank statement. If we allowed cancellations then there's a window where funds could already have been released by the bank before our system is updated which would allow a cancellation to occur, funds to be credited back to a lender that are no longer present in the client money account. That would be a regulatory breach. For the most part I would therefore not expect to allow any cancellations of withdrawals off platform once they have been submitted, and authorised via 2FA, unless there is a report of fraud or an account being hacked where we'd then need to follow a procedure involving insurance companies and pausing all withdrawals until we were comfortable, etc. Thanks for the reply chris - that's helpful. Yes, cash withdrawal, that I wanted to stop so as not to reduce the sum eligible for the bonus I signed up for. Whether re-depositing the money the same day rather than trying to cancel the withdrawal would have been a solution to the problem I don't know, though seems unlikely.
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