p2pfan
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Post by p2pfan on Jun 1, 2020 18:08:38 GMT
From today's punch in the face / newsletter from Access Capital:
"We now expect to deliver the following interest in the 1st June payment for the Access Accounts:
• Quick Access Account – 4.1%
• 30 Day and 90 Day Access Accounts - 4.4%
...
For the time being, we are changing the published target rates on our Access Accounts as follows:
- QAA - 3.75%
- 30DAA - 4.00%
- 90DAA - 4.10%
"
I'm curious to know why there will be hardly any difference paid on the 90DAA versus the 30DAA or QAA?
Is this something AC are likely to continue on a long-term basis?
It doesn’t make any sense for lenders to have our money trapped for at least 90 days when the return is not meaningfully higher than those accounts with (hypothetically) much quicker access.
Is AC likely to increase the 90DAA rate from the 4.1% in the medium term i.e. towards the end of this year or beginning of 2021?
Cheers.
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Post by gobuchul on Jun 1, 2020 18:18:18 GMT
Probably because most of the money in the 90DAA across the platform is already in the withdrawal queue, so there is now no material difference between the different access accounts. Just put your entire 90DAA in the queue (like everyone else) and then before that long you can be in exactly the same position as everyone in the QAA, but getting a bit more interest while you wait for years to get your money.
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ashtondav
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Post by ashtondav on Jun 2, 2020 7:38:40 GMT
The rates on offer, if sustainable, are outstanding compared to risk free rates on offer which are around 1% to 1.2%. A 100% premium would imply a rate of 2% to 2.4%. To get 3.7%+ is a damn good deal if you want income and have no immediate need to withdraw capital.
As all my risk investments (bonds, equity and p2p) have been made to generate income fluctuations in, or access to, capital are less important and to me. I have BS accounts for capital sums I may need for major expense items. If access to short term capital is important you should not be in any risk asset.
Which is not to absolve AC from incorrectly labeling its accounts as “access”
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Post by elephantrosie on Jun 2, 2020 15:46:32 GMT
The rates on offer, if sustainable, are outstanding compared to risk free rates on offer which are around 1% to 1.2%. A 100% premium would imply a rate of 2% to 2.4%. To get 3.7%+ is a damn good deal if you want income and have no immediate need to withdraw capital. As all my risk investments (bonds, equity and p2p) have been made to generate income fluctuations in, or access to, capital are less important and to me. I have BS accounts for capital sums I may need for major expense items. If access to short term capital is important you should not be in any risk asset. Which is not to absolve AC from incorrectly labeling its accounts as “access” sorry whats BS
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Post by elephantrosie on Jun 2, 2020 15:47:45 GMT
Probably because most of the money in the 90DAA across the platform is already in the withdrawal queue, so there is now no material difference between the different access accounts. Just put your entire 90DAA in the queue (like everyone else) and then before that long you can be in exactly the same position as everyone in the QAA, but getting a bit more interest while you wait for years to get your money. the total invested funds in 90daa has increased in the past week. so your theory isnt correct... i think. but something to consider, thanks.
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iann
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Post by iann on Jun 2, 2020 15:52:19 GMT
The rates on offer, if sustainable, are outstanding compared to risk free rates on offer which are around 1% to 1.2%. A 100% premium would imply a rate of 2% to 2.4%. To get 3.7%+ is a damn good deal if you want income and have no immediate need to withdraw capital. As all my risk investments (bonds, equity and p2p) have been made to generate income fluctuations in, or access to, capital are less important and to me. I have BS accounts for capital sums I may need for major expense items. If access to short term capital is important you should not be in any risk asset. Which is not to absolve AC from incorrectly labeling its accounts as “access” sorry whats BS I presume Building Society
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Post by gobuchul on Jun 2, 2020 16:24:38 GMT
Probably because most of the money in the 90DAA across the platform is already in the withdrawal queue, so there is now no material difference between the different access accounts. Just put your entire 90DAA in the queue (like everyone else) and then before that long you can be in exactly the same position as everyone in the QAA, but getting a bit more interest while you wait for years to get your money. the total invested funds in 90daa has increased in the past week. so your theory isnt correct... i think. but something to consider, thanks. This would be consistent with my theory. If you have money in the QAA or 30DAA that you cannot withdraw (except at a dribble), you may as well move it to the 90DAA and put it in the withdrawal queue. You are largely in the same position but get a bit more interest. Edit: Especially if you leave some in the other accounts as you will get a double dribble (so to speak).
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Post by Ton ⓉⓞⓃ on Jun 2, 2020 16:32:38 GMT
Probably because most of the money in the 90DAA across the platform is already in the withdrawal queue, so there is now no material difference between the different access accounts. Just put your entire 90DAA in the queue (like everyone else) and then before that long you can be in exactly the same position as everyone in the QAA, but getting a bit more interest while you wait for years to get your money. the total invested funds in 90daa has increased in the past week. so your theory isnt correct... i think. but something to consider, thanks.
You're right of course but the figures are heavily rounded, i.e the 90DAA went from 77m to 78m a round million pound difference. But that large change of a £1million can be caused by an increase of just £100 or £10 or even a penny as that's the way rounding works.
However I tend to agree with you as the MLA figure increased by a million too a few days before (£113m to £114m), both these increases might be interest (refi's etc) being paid in, it will be informative to see if Lenders now try to withdraw this and the figure goes down to where they both were.
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cb25
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Post by cb25 on Jun 2, 2020 16:36:00 GMT
the total invested funds in 90daa has increased in the past week. so your theory isnt correct... i think. but something to consider, thanks. This would be consistent with my theory. If you have money in the QAA or 30DAA that you cannot withdraw (except at a dribble), you may as well move it to the 90DAA and put it in the withdrawal queue. You are largely in the same position but get a bit more interest. Edit: Especially if you leave some in the other accounts as you will get a double dribble (so to speak). Pro-rata payments have surely stopped the benefit of multiple access accounts in regard to payouts.
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Post by gobuchul on Jun 2, 2020 16:39:45 GMT
This would be consistent with my theory. If you have money in the QAA or 30DAA that you cannot withdraw (except at a dribble), you may as well move it to the 90DAA and put it in the withdrawal queue. You are largely in the same position but get a bit more interest. Edit: Especially if you leave some in the other accounts as you will get a double dribble (so to speak). Pro-rata payments have surely stopped the benefit of multiple access accounts in regard to payouts.
Yes you are right. I wrote that before I saw the change. Just getting up to speed!
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dead-money
Rocket to the Moon
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Post by dead-money on Jun 2, 2020 17:02:16 GMT
Pro-rata payments have surely stopped the benefit of multiple access accounts in regard to payouts.
Yes you are right. I wrote that before I saw the change. Just getting up to speed! This is why proper announcements from Assetz Capital and clarity on the capital repayment calcuation method being employed would be useful. stuartassetzcapital
So with nine access sub accounts each with £10K am I now better or worse of than with the flat-rate system?
Presumably impossible to know as system is now more opaque than a thousand vestal virgins veils.
However, if you personal expectation is that it will take longer than 90 days to return to 'Normal market conditions' than yes you might as well go into 90AA now.
Unless, (tin foil hat on), it's all just a cunning plan to get everyone locked in, before yet another rewriting / reinterpretation of the rules!
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dead-money
Rocket to the Moon
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Post by dead-money on Jun 2, 2020 22:53:29 GMT
the total invested funds in 90daa has increased in the past week. so your theory isnt correct... i think. but something to consider, thanks. This would be consistent with my theory. If you have money in the QAA or 30DAA that you cannot withdraw (except at a dribble), you may as well move it to the 90DAA and put it in the withdrawal queue. You are largely in the same position but get a bit more interest. Edit: Especially if you leave some in the other accounts as you will get a double dribble (so to speak). Unless I'm missing something, with the new interface, the transfer options from QAA to 30DAA and 30DAA to 90DAA no longer exist.
So whilst you can redirect queued withdrawals to another account, it will still only move at the current Glacial pace.
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Post by elephantrosie on Jun 3, 2020 4:03:18 GMT
This would be consistent with my theory. If you have money in the QAA or 30DAA that you cannot withdraw (except at a dribble), you may as well move it to the 90DAA and put it in the withdrawal queue. You are largely in the same position but get a bit more interest. Edit: Especially if you leave some in the other accounts as you will get a double dribble (so to speak). Pro-rata payments have surely stopped the benefit of multiple access accounts in regard to payouts.
sorry. noob here. what do you mean?
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Post by Ace on Jun 3, 2020 7:27:40 GMT
Pro-rata payments have surely stopped the benefit of multiple access accounts in regard to payouts.
sorry. noob here. what do you mean? Until yesterday, if you had multiple access accounts all in the exit queue, when a distribution payment made you would have received one flat distribution payment per account. So, if you had a QAA, 30DAA and 90DAA accounts in both standard and IFISA form, you would receive 6 times the distribution payment. As of yesterday, you will now receive payments pro-rata according to the total amount in your accounts, so having money spread over multiple accounts is no longer an advantage.
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blender
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Post by blender on Jun 3, 2020 8:10:04 GMT
sorry. noob here. what do you mean? Until yesterday, if you had multiple access accounts all in the exit queue, when a distribution payment made you would have received one flat distribution payment per account. So, if you had a QAA, 30DAA and 90DAA accounts in both standard and IFISA form, you would receive 6 times the distribution payment. As of yesterday, you will now receive payments pro-rata according to the total amount in your accounts, so having money spread over multiple accounts is no longer an advantage. Is it pro-rata to the amount in your account, or pro-rata to the amount requested to be withdrawn? Where there is a difference between the two, of course.
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