puffin
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Post by puffin on Sept 19, 2016 22:54:48 GMT
I'd like to know the smallest loan amount that would generate one pence(£0.01) of interest in one day on SS?
Also a follow, what is the largest amount that only gives one pence a day?
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ablender
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Post by ablender on Sept 19, 2016 23:02:08 GMT
I think it is £30.42
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puffin
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Post by puffin on Sept 19, 2016 23:11:28 GMT
It's less then £20, assuming interest shown here is correct on monthly payout. 
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0risk
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Post by 0risk on Sept 19, 2016 23:27:20 GMT
Tomorrow it'll show 0.01 again.
Interest for one day is 12%/365. For £20, that gives 0.00658, but SS shows it rounded: 0.01
In two days, it is 0.01315.
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awk
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Post by awk on Sept 20, 2016 5:53:19 GMT
I think it rounds UP/DOWN to the nearest penny (and not always up).
Certainly, my £1 of the Garden Centre didn't earn any interest until about 15 days after I bought it (when the interest got above half a penny) and then showed a whole penny of interest. Obviously, depending what happens with the sale, I might not ever receive that interest !!
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mikeh
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Post by mikeh on Sept 20, 2016 7:56:58 GMT
I agree SS round interest to the nearest penny.
£30.42 will earn you 1 penny per day every day.
However half of this figure (£15.21) for 1 day only will earn 0.500054p interest which will get rounded up to 1p.
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sl75
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Post by sl75 on Sept 20, 2016 8:45:10 GMT
I suppose the answer to this question primarily depends on whether you're: 1. Trying to simplify your own calculations by ensuring your loan part(s) are generating as close as possible to an exact multiple of a whole number of pence per day. 2. Trying to defraud savingstream by salami slicing, churning huge numbers of tiny loan parts each day in the hope that they'll not notice, and blindly round every single payment up, rather than using a system that takes into account your accrued balance of roundings up and down (or, heaven forbid, switching to a system of calculating and showing all transactions to 40 decimal places like a certain other platform!) Edit: Another possible reaction to such attempted fraud could be to add further logic to the mechanism that makes certain loan parts ineligible for sale... inconveniencing anyone who has a legitimate need to sell a small loan part after a short amount of time. |
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ablender
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Post by ablender on Sept 20, 2016 8:56:34 GMT
I agree SS round interest to the nearest penny. £30.42 will earn you 1 penny per day every day. However half of this figure (£15.21) for 1 day only will earn 0.500054p interest which will get rounded up to 1p. This gets the wheels in my brain thinking. (Figures for illustration only) If I have £15.21 * 4 = £60.84, and I buy 4 loan parts of £15.21 each, hold them for a day and sell and repeat, I should get the same amount of interest as if I invested £121.68. And all pro rata above these figures. It will take a lot of work and not sure if anyone will find it worth the time, but in theory it seems to work. If multiple parts of the same loan are calculated together this will quickly have a limit; at most one part per loan. If on the other hand each part is calculated independently, one can buy multiple parts of the same loan using the above scheme. I do however think that it will take a lot of time that will not make it worth it and impracticable.
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ablender
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Post by ablender on Sept 20, 2016 9:02:09 GMT
.... Edit: Another possible reaction to such attempted fraud could be to add further logic to the mechanism that makes certain loan parts ineligible for sale... inconveniencing anyone who has a legitimate need to sell a small loan part after a short amount of time. Can you elaborate please?
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sl75
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Post by sl75 on Sept 20, 2016 9:21:32 GMT
.... Edit: Another possible reaction to such attempted fraud could be to add further logic to the mechanism that makes certain loan parts ineligible for sale... inconveniencing anyone who has a legitimate need to sell a small loan part after a short amount of time. Can you elaborate please? We're already unable to sell loan parts that are younger than 7 days if the account balance is negative. It would seem to me a (technically) quite simple matter for savingstream to modify the logic in the function that determines eligibility for sale to cover cases such as selling a £20 or £15.41 loan part after 1 day (regardless of account balance) in order to block sales where this type of fraud might be attempted before it could happen, rather than having the administrative and legal hassle of dealing with such fraud after it had already occurred. This would be to the annoyance of those who had a legitimate need to sell out a batch of loan parts, which happened to include some which met the new restriction (which would probably necessarily be broader, so that there isn't a counter-accusation of savingstream unfairly allowing only those sales which benefit it by a fraction of a penny). e.g. one option could be to block all sales of loan parts smaller than £100 within 1 week. Edit: Other, less intrusive, counter-measures could include keeping (or calculating after the event) a tally of roundings up and down, and posting corrections to the statement if they become "too large" - in either direction.
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dan83
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Post by dan83 on Sept 20, 2016 9:25:41 GMT
I've also wondered this, most of my loans are wait her £100 or £200.
On most day's a £100 loan will generate 3p, but a £200 loan generates 7p.
I knew the reason why, I just didn't know the exact amount.
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lofty
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Post by lofty on Sept 20, 2016 10:35:24 GMT
If I have £15.21 * 4 = £60.84, and I buy 4 loan parts of £15.21 each, hold them for a day and sell and repeat, I should get the same amount of interest as if I invested £121.68. And all pro rata above these figures. It will take a lot of work and not sure if anyone will find it worth the time, but in theory it seems to work. If multiple parts of the same loan are calculated together this will quickly have a limit; at most one part per loan. If on the other hand each part is calculated independently, one can buy multiple parts of the same loan using the above scheme. I do however think that it will take a lot of time that will not make it worth it and impracticable. Lets say it takes me about 10 seconds to sell a loan part @ £15.21. That means I could sell 6 a minute. If I had a loan part of £5475.60 I could sell the whole lot in an hour (assuming there's a buyer). That would net me £3.60. Deduct from this the £1.80 it would have earned anyway and that leaves you with an hourly rate of £1.80. Even Sports Direct pays better... 
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sl75
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Post by sl75 on Sept 20, 2016 11:39:33 GMT
Lets say it takes me about 10 seconds to sell a loan part @ £15.21. That means I could sell 6 a minute. If I had a loan part of £5475.60 I could sell the whole lot in an hour (assuming there's a buyer). That would net me £3.60. Deduct from this the £1.80 it would have earned anyway and that leaves you with an hourly rate of £1.80. Not forgetting to adjust for the risk to your entire portfolio's return if section 14.2 of the T&Cs is invoked.
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fp
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Post by fp on Sept 20, 2016 12:11:19 GMT
I've also wondered this, most of my loans are wait her £100 or £200. On most day's a £100 loan will generate 3p, but a £200 loan generates 7p. I knew the reason why, I just didn't know the exact amount. £91.25 (3p per day)or £182.50 (6p per day) would be an ideal amount for you to invest keeping your shrapnel to a minimum and easy to calculate interest.
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jonbvn
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Post by jonbvn on Sept 20, 2016 14:24:19 GMT
If I have £15.21 * 4 = £60.84, and I buy 4 loan parts of £15.21 each, hold them for a day and sell and repeat, I should get the same amount of interest as if I invested £121.68. And all pro rata above these figures. It will take a lot of work and not sure if anyone will find it worth the time, but in theory it seems to work. If multiple parts of the same loan are calculated together this will quickly have a limit; at most one part per loan. If on the other hand each part is calculated independently, one can buy multiple parts of the same loan using the above scheme. I do however think that it will take a lot of time that will not make it worth it and impracticable. Lets say it takes me about 10 seconds to sell a loan part @ £15.21. That means I could sell 6 a minute. If I had a loan part of £5475.60 I could sell the whole lot in an hour (assuming there's a buyer). That would net me £3.60. Deduct from this the £1.80 it would have earned anyway and that leaves you with an hourly rate of £1.80. Even Sports Direct pays better... But what if you automate the process? I believe it is called "salami slicing".
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