|
Post by overthehill on Jun 2, 2020 19:36:56 GMT
For the 5 year product, I was expecting 3% (half of 6%) interest in May but I've received more like 4%.
Does anybody know what is going on here? Will they be clawing this back in the subsequent months or have I not understood the statement below.
Thanks.
*Following the Covid-19 outbreak and the current economic environment, RateSetter announced on 4 May a temporary reduction in interest for the remainder of the year. During this time, investors will receive only 50% of their interest with the other 50% going to the Provision Fund, for the protection of all investors. Also, since the outbreak, the time it is taking investors to release their investments is currently longer than normal. Further information is available here.
|
|
wapping35
Member of DD Central
Posts: 385
Likes: 210
|
Post by wapping35 on Jun 2, 2020 20:19:36 GMT
It is probably down to it not impacting the large (in percentage terms) May 1st repayment.
i.e. Since it took effect from May 4th for repayments from Saturday May 2nd the May 1st repayment was not reduced.
It will depend on the % of loans you have, that repay on 1st.
And of course after May it will be for a full month.
|
|
|
Post by Deleted on Jun 2, 2020 20:48:00 GMT
Interest is applied as each repayment is processed. So a repayment received on:
3/5 includes interest at the full rate 19/5 includes interest at roughly 50:50 full and half rate.
|
|