bg
Member of DD Central
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Post by bg on Apr 8, 2019 9:14:53 GMT
All the same, I’d rather AC just offered boring reliable occasionally slightly adjusted rates on it’s three access accounts. Every time another promotion comes along I wince and worry about why AC are doing it this time and their long term stability. What's better for our long term financial stability - paying 1% cashback on £20m or so of new deposits, or paying an uplifted rate of even 0.25% on £160m+ in the access accounts? Is an uplift in rate of 0.25% going to be as effective in bringing in those additional funds? The only issue I see with the current run of promotions is that they are now pretty predictable. People can see them coming and when one finishes they even expect a new one to be announced. This means that people may start taking any opportunity they can to get funds off the platform so they can take advantage of the next promotion. They may even deem it worth withdrawing everything and missing out a promo in order to go large on the next one.
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Post by chris on Apr 8, 2019 9:23:53 GMT
What's better for our long term financial stability - paying 1% cashback on £20m or so of new deposits, or paying an uplifted rate of even 0.25% on £160m+ in the access accounts? Is an uplift in rate of 0.25% going to be as effective in bringing in those additional funds? The only issue I see with the current run of promotions is that they are now pretty predictable. People can see them coming and when one finishes they even expect a new one to be announced. This means that people may start taking any opportunity they can to get funds off the platform so they can take advantage of the next promotion. They may even deem it worth withdrawing everything and missing out a promo in order to go large on the next one. That hasn't gone unnoticed and there's a couple of strategies in place to address this sooner rather than later.
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Post by bagsy on Apr 8, 2019 10:23:57 GMT
Currently I have funds that were invested in the previous cashback promotion (the one that requires the money to stay there until 12th Dec) - lets say for simplicity that was £5,000. If ! now invest a further £5,000 in this new offer which only has to stay there until 5th October what would be the situation if I withdraw £5,000 after 5th October (but before 12 Dec)?
Would AC regard the withdrawal on a LIFO basis i.e. so that £5,000 withdrawn would be treated as being purely in respect of the investment for the new promotion so I would get that 1% bonus and, assuming I keep the original money in until 12 Dec, I would still get the previous promotional bonus? Or would I jeopardise the bonus on the first promotion? Thanks.
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Post by bagsy on Apr 8, 2019 10:56:31 GMT
Currently I have funds that were invested in the previous cashback promotion (the one that requires the money to stay there until 12th Dec) - lets say for simplicity that was £5,000. If ! now invest a further £5,000 in this new offer which only has to stay there until 5th October what would be the situation if I withdraw £5,000 after 5th October (but before 12 Dec)? Would AC regard the withdrawal on a LIFO basis i.e. so that £5,000 withdrawn would be treated as being purely in respect of the investment for the new promotion so I would get that 1% bonus and, assuming I keep the original money in until 12 Dec, I would still get the previous promotional bonus? Or would I jeopardise the bonus on the first promotion? Thanks. Forget above. Having reread the T&C's for both promos again more thoroughly it would seem that there wouldn't be an issue in circumstances described and both bonuses would payable. Are these cashbacks treated as being taxable as Other Income or as non taxable by the way? Think my strategy might be to invest the additional funds around May 30th (to minimise period at risk), shove it in the 90 day account (as it can't be withdrawn for more than 90 days anyway) and set a withdrawal date of 6th October.
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alexs
Posts: 37
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Post by alexs on Apr 8, 2019 11:13:59 GMT
Currently I have funds that were invested in the previous cashback promotion (the one that requires the money to stay there until 12th Dec) - lets say for simplicity that was £5,000. If ! now invest a further £5,000 in this new offer which only has to stay there until 5th October what would be the situation if I withdraw £5,000 after 5th October (but before 12 Dec)? Would AC regard the withdrawal on a LIFO basis i.e. so that £5,000 withdrawn would be treated as being purely in respect of the investment for the new promotion so I would get that 1% bonus and, assuming I keep the original money in until 12 Dec, I would still get the previous promotional bonus? Or would I jeopardise the bonus on the first promotion? Thanks. Seems that AC have just introduced a new layout for all the current and old offers on their webpage addressing this issue. It states "Don’t drop below your starting balance of: £x " for all the promotions. Very helpful!
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zlb
Member of DD Central
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Post by zlb on Apr 8, 2019 11:42:41 GMT
I have similar concerns. Is AC just becoming one huge complicated Ponzi scheme? New money constantly required to pay existing investors returns and bail out bad investments? Growth is great but not at any price. We perform daily client money reconciliations the results of which are reported back to the FCA, who also review our governance of all things client money. I can categorically state that we are not taking funds from lenders to bail out anyone. But that really shouldn't need stating. Thank you for stating it anyway, your presence helps reassure people, especially if they aren't well versed in how to dig deep enough to know how a platform operates. It's great that this reconciliation is reported to the FCA.
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sl75
Posts: 2,092
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Post by sl75 on Apr 8, 2019 12:15:40 GMT
Seems that AC have just introduced a new layout for all the current and old offers on their webpage addressing this issue. It states "Don’t drop below your starting balance of: £x " for all the promotions. Very helpful! It could be even more helpful, if it showed closing balance rather than starting balance.
Either are useful, but the starting balance is "don't drop below this value if you want any payment at all from this promotion", and closing balance is "don't drop below this value if you want to receive the full payout from this promotion.
Clearly AC are trying to save some money by encouraging investors to withdraw back down towards the starting balance so they don't have to pay as much out on the promotions!
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Post by drphil on Apr 8, 2019 13:08:10 GMT
Well worked out well for me. Withdrew £8k last week to re-fund my flexible cash isa. And now getting paid £80 to put it back in 
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sl75
Posts: 2,092
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Post by sl75 on Apr 8, 2019 13:10:18 GMT
Well worked out well for me. Withdrew £8k last week to re-fund my flexible cash isa. And now getting paid £80 to put it back in £160 if you transfer that cash ISA into an AC IFISA. Lucky you!
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Post by Ace on Apr 8, 2019 15:24:30 GMT
Seems that AC have just introduced a new layout for all the current and old offers on their webpage addressing this issue. It states "Don’t drop below your starting balance of: £x " for all the promotions. Very helpful! It could be even more helpful, if it showed closing balance rather than starting balance.
Either are useful, but the starting balance is "don't drop below this value if you want any payment at all from this promotion", and closing balance is "don't drop below this value if you want to receive the full payout from this promotion.
Clearly AC are trying to save some money by encouraging investors to withdraw back down towards the starting balance so they don't have to pay as much out on the promotions!
It does give qualifying amount as well, so not to tricky to add the two to get the closing balance requirement 😉
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zlb
Member of DD Central
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Post by zlb on Apr 8, 2019 17:40:43 GMT
So I can't deposit my new ISA money, and transfer out some of my previous years ISA?
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agent69
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Post by agent69 on Apr 13, 2019 8:54:54 GMT
Decided to put £6k into the ISA offer to see how it goes.
Suprised to see that the second biggest allocation of cash went to a loan that was suspended nearly 2 months ago. How can it be traded if it was suspended (who had it before me?)
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bg
Member of DD Central
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Post by bg on Apr 13, 2019 9:18:34 GMT
Decided to put £6k into the ISA offer to see how it goes.
Suprised to see that the second biggest allocation of cash went to a loan that was suspended nearly 2 months ago. How can it be traded if it was suspended (who had it before me?)
This has been done to death on various other threads:- Discussion
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agent69
Member of DD Central
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Post by agent69 on Apr 13, 2019 9:31:47 GMT
Decided to put £6k into the ISA offer to see how it goes.
Suprised to see that the second biggest allocation of cash went to a loan that was suspended nearly 2 months ago. How can it be traded if it was suspended (who had it before me?)
This has been done to death on various other threads:- DiscussionThanks for that.
I see that "Trading in suspended loans is only allowed in the access accounts whilst the provision fund has ring fenced funds to cover any expected losses of capital in those loans, i.e. the discretionary decision has been taken and the funds set aside"
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lobster
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Post by lobster on Apr 13, 2019 9:34:44 GMT
Does anyone know if % cash allocation is equal across all 3 access accounts ?
I hold the QAA only, and from my own holdings I have calculated that the current % cash allocation is about 7.47% which is higher than normal nowadays. Does anyone have the corresponding figure for the 30DAA and/or the 90DAA ? Thanks.
I would guess that AC ensure that the cash allocation is equalised across all 3 accounts ...... but maybe not ?
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