|
Post by bobthebuilder on Oct 11, 2015 17:33:33 GMT
Anyone interested in retaining their 30 day notice money with Wellesley once their monthly income rate falls to 3.30% on 1st November? Clearly Wellesley think someone will be, or they wouldn't have felt the need to cap investments in that product at £25,000 per customer.
|
|
webwiz
Posts: 1,133
Likes: 210
|
Post by webwiz on Oct 11, 2015 21:55:01 GMT
I am withdrawing funds as they mature. I get offered preferential rates to re-invest but they are still not attractive. W have spent a lot of money on TV and other ads which could have been used to give better rates to investors.
|
|
ben
Posts: 2,020
Likes: 589
|
Post by ben on Oct 12, 2015 11:02:58 GMT
As rates are dropping they have either spent to much on advertising or it has worked well for them and they have plenty of money on offer so can drop the rates offered to investors.
What are the other markets dropping to? as have not noticed an email about rate droppings
|
|
oldgrumpy
Member of DD Central
Posts: 5,087
Likes: 3,233
|
Post by oldgrumpy on Oct 12, 2015 11:03:59 GMT
Rat droppings? Where?
|
|
justsaying
Member of DD Central
Posts: 112
Likes: 66
|
Post by justsaying on Oct 12, 2015 14:50:44 GMT
Bit miffed........I've had no email from W and their website bears no mention of rate dropping or limits from 1st November. May I please ask how this information was communicated to you bobthebuilder?
|
|
|
Post by bobthebuilder on Oct 12, 2015 17:58:52 GMT
justsaying Wellesley sent me an e-mail on 1/10 and the information is confirmed hereThey are offering a special promotion to existing holders of 30 day notice accounts giving them a bonus of 30 days gross interest at 3.55% p.a if they reinvest maturing amounts into a 1 year term before 30/11/15, but according to my calculations this still equates to a gross return on 1 year funds of only 4.05%, and I'm with webwiz in deciding that this is not enough for Wellesley to keep my money once my 30 day notice funds have matured.
|
|
|
Post by Financial Thing on Oct 14, 2015 14:56:20 GMT
Does a 0.20% rate drop really make a difference if you consider the platform to be stable and relatively safe for short term money parking? You are talking about £2 difference in interest on £10k and £14 on £100k.
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Oct 21, 2015 22:09:16 GMT
Does a 0.20% rate drop really make a difference if you consider the platform to be stable and relatively safe for short term money parking? You are talking about £2 difference in interest on £10k and £14 on £100k. It seems that Wellesley considers it to be of enough significance to be worth doing. I assume that investors will respond as appropriate based on the effect on Wellesley's competitive position vs other options. Plenty of higher paying if someone is willing to accept the chance of a delay of a week or so when withdrawing, to allow time for secondary market sales. A person with £1,000 could put just £35 of it into a place delivering 12% to undo the effect of the rate cut, with a few pennies extra on top.
|
|
|
Post by Financial Thing on Oct 22, 2015 21:44:25 GMT
Does a 0.20% rate drop really make a difference if you consider the platform to be stable and relatively safe for short term money parking? You are talking about £2 difference in interest on £10k and £14 on £100k. It seems that Wellesley considers it to be of enough significance to be worth doing. I assume that investors will respond as appropriate based on the effect on Wellesley's competitive position vs other options. Plenty of higher paying if someone is willing to accept the chance of a delay of a week or so when withdrawing, to allow time for secondary market sales. A person with £1,000 could put just £35 of it into a place delivering 12% to undo the effect of the rate cut, with a few pennies extra on top. If you consider the platforms paying 12% as safe as W&Co but if you think W&Co is safer, then this drop in interest for month to month shouldn't be significant.
|
|
james
Posts: 2,205
Likes: 955
|
Post by james on Oct 22, 2015 22:06:14 GMT
Using 3.5% of the money at a place paying more isn't really the sort of thing that I think should be a serious risk concern. I'd rank providing feedback on interest rate elasticity to Wellesley as considerably more important.
|
|
|
Post by mrclondon on Apr 25, 2016 17:02:25 GMT
Earlier this afternoon the rates page on the W&Co website www.wellesley.co.uk/products/peer-to-peer-lending/ was refreshed.
The monthly term has been removed as has the 18 month term, to be replaced with new 2 and 4 year terms.
The 1 year rate is unchanged, but small reductions on both 3 & 5 year rates have been implemented.
Here's my usual table of XIRR (which is almost identical to AER ) of the new rates:
E&OE
|
|
elgerod
Member of DD Central
Posts: 99
Likes: 29
|
Post by elgerod on Apr 26, 2016 1:14:49 GMT
|
|
|
Post by Financial Thing on Apr 26, 2016 12:38:00 GMT
Earlier this afternoon the rates page on the W&Co website www.wellesley.co.uk/products/peer-to-peer-lending/ was refreshed.
The monthly term has been removed as has the 18 month term, to be replaced with new 2 and 4 year terms.
The 1 year rate is unchanged, but small reductions on both 3 & 5 year rates have been implemented.
Here's my usual table of XIRR (which is almost identical to AER ) of the new rates:
E&OE Wow, that's a big change for W&Co. I bet it'll have a few people heading for the exits.
|
|
|
Post by jackpease on Apr 26, 2016 12:51:55 GMT
I agree. It makes Wellesley considerably less useful - for me i found the 30 day term competitive and the other terms uncompetitive. Has it said whether we will be obliged to end our 30 day holdings? J
|
|
|
Post by lionelrichtea on Apr 27, 2016 9:38:55 GMT
Received by e-mail:
We would like to inform you, as an existing investor in the 30 Day Product, that the interest rates will be decreasing with effect from 27th May 2016 to:
30 Day Product, Interest Paid Monthly: 2.72% pa
30 Day Product, Interest Paid on Maturity: 2.75% pa
So are they closing the 30 day product to new investments? Together with a 0.6% rate reduction!
|
|