warn
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Post by warn on Jan 13, 2016 10:49:13 GMT
Apologies if this is documented somewhere, but...
I assume that interest earned on swept funds in the QAA is paid to the investment account from which the funds were swept. But what about interest on QAA Direct investment -- is that "Directly" invested back into the QAA? And if so, what if my Direct investment were already at the £50000 limit (ISBSL)?
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sl75
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Post by sl75 on Jan 13, 2016 12:42:50 GMT
Apologies if this is documented somewhere, but... I assume that interest earned on swept funds in the QAA is paid to the investment account from which the funds were swept. But what about interest on QAA Direct investment -- is that "Directly" invested back into the QAA? And if so, what if my Direct investment were already at the £50000 limit (ISBSL)? As with the other investment accounts there's a dropdown "On Repayment", which should determine whether the system will attempt to re-invest or immediately withdraw (to the AC cash account) any interest. When there's a queue, the interest joins it, just like any other deposit into the QAA... and one would expect it to be subject to all the same rules as any other funds added to (or attempted to be added to) the queue. No idea about implementation detail though - whether AC would forcibly transfer the excess to the cash account (perhaps a great way to get the balance back to a multiple of a penny for those with £50k to spare and willing to use it for such a trivial task!), or leave it as an uninvested balance within the QAA.
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Post by chris on Jan 13, 2016 14:49:23 GMT
At the moment it just leaves uninvestable amounts in the queue, no special logic. Caps may increase at some point too.
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warn
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Post by warn on Jan 13, 2016 16:58:18 GMT
OK, thanks, I think I have it.
So just to be clear, given rough current QAA figures (£50K personal cap on direct, 25K personal cap on swept, global invest some £200K less than global cap), and assuming I have £50K direct invest and 10K swept -- if today were a QAA interest payment date, my swept funds' interest would find its way into the QAA, but my direct invest interest would join a non-interest-bearing queue. Is that correct?
(May I stress that like Algernon, I ask merely for information, and not in any spirit of criticism.)
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Post by chris on Jan 13, 2016 18:12:43 GMT
OK, thanks, I think I have it. So just to be clear, given rough current QAA figures (£50K personal cap on direct, 25K personal cap on swept, global invest some £200K less than global cap), and assuming I have £50K direct invest and 10K swept -- if today were a QAA interest payment date, my swept funds' interest would find its way into the QAA, but my direct invest interest would join a non-interest-bearing queue. Is that correct? (May I stress that like Algernon, I ask merely for information, and not in any spirit of criticism.)That is correct. The interest on the £50k direct would remain in the QAA but would be queued as it couldn't be deployed due to the personal investment cap. The interest on the £10k would be returned to the account the investment came from and would then be invested back into the QAA global cap allowing and up to your personal £25k cap.
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sl75
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Post by sl75 on Jan 14, 2016 7:44:48 GMT
OK, thanks, I think I have it. So just to be clear, given rough current QAA figures (£50K personal cap on direct, 25K personal cap on swept, global invest some £200K less than global cap), and assuming I have £50K direct invest and 10K swept -- if today were a QAA interest payment date, my swept funds' interest would find its way into the QAA, but my direct invest interest would join a non-interest-bearing queue. Is that correct? (May I stress that like Algernon, I ask merely for information, and not in any spirit of criticism.)That is correct. The interest on the £50k direct would remain in the QAA but would be queued as it couldn't be deployed due to the personal investment cap. The interest on the £10k would be returned to the account the investment came from and would then be invested back into the QAA global cap allowing and up to your personal £25k cap. Presumably, however, in the same scenario (QAA direct cap reached but swept cap not reached), if the QAA were set to withdraw interest, this interest payment would go to the cash account, thus getting itself swept into the QAA as a non-direct investment... which amuses me slightly - "reinvest repayments" in that specific scenario would result in the interest not being re-invested, but "withdraw interest" or "withdraw repayments and interest" would result in the repayments being re-invested!
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pikestaff
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Post by pikestaff on Jan 14, 2016 8:15:43 GMT
That is correct. The interest on the £50k direct would remain in the QAA but would be queued as it couldn't be deployed due to the personal investment cap. The interest on the £10k would be returned to the account the investment came from and would then be invested back into the QAA global cap allowing and up to your personal £25k cap. Presumably, however, in the same scenario (QAA direct cap reached but swept cap not reached), if the QAA were set to withdraw interest, this interest payment would go to the cash account, thus getting itself swept into the QAA as a non-direct investment... which amuses me slightly - "reinvest repayments" in that specific scenario would result in the interest not being re-invested, but "withdraw interest" or "withdraw repayments and interest" would result in the repayments being re-invested! I don't think you can sweep from cash to the QAA. Anything going from cash to the QAA would be a direct investment. The solution would be to have the interest on the £50k withdrawn to cash, then add it to the MLIA (or the GEIA etc) and have it swept from there. Edit: I was wrong. See below.
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Post by chris on Jan 14, 2016 8:23:50 GMT
Presumably, however, in the same scenario (QAA direct cap reached but swept cap not reached), if the QAA were set to withdraw interest, this interest payment would go to the cash account, thus getting itself swept into the QAA as a non-direct investment... which amuses me slightly - "reinvest repayments" in that specific scenario would result in the interest not being re-invested, but "withdraw interest" or "withdraw repayments and interest" would result in the repayments being re-invested! I don't think you can sweep from cash to the QAA. Anything going from cash to the QAA would be a direct investment. The solution would be to have the interest on the £50k withdrawn to cash, then add it to the MLIA (or the GEIA etc) and have it swept from there. Not true, there's the option to sweep from the cash account if you enable it.
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