jimc99
Member of DD Central
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Post by jimc99 on Jan 31, 2017 20:44:17 GMT
The value of my account is 2k with 1,700 invested and 300 cash.
My auto invest is 1% (2% until recently).
But my most recent investments were all £30. I would expect £20 .... being 1% of £2,000.
Anyone any idea why?
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logos
New Member
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Post by logos on Jan 31, 2017 21:54:22 GMT
I guess the value of your account is just over 2k because of the interest. So 1% of a total just over 2k is something just over £20. And as the invested values are multiples of £10, just over £20 becomes £30.
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fp
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Post by fp on Jan 31, 2017 21:55:18 GMT
if its a penny over £2000 the level of your investment per loan will be higher
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Post by stevefindlay on Feb 1, 2017 7:57:02 GMT
That is correct. Each client's 'unit size' is calculated on the total amount held with BondMason (which increases as you earn interest), it is then rounded up to the nearest £10.
So 1% of £5,000 is £50.
As soon as interest is earned, then 1% of £5,001 is £50.01, which is rounded to £60.
Obviously, for holdings of less than £10,000 the rounding up has a bigger impact. Average holdings on BondMason are ~£17,000.
So, £170 becomes £180 etc.
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keystone
Member of DD Central
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Post by keystone on Feb 1, 2017 14:09:36 GMT
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Post by stevefindlay on Feb 1, 2017 14:34:22 GMT
That is correct. Each client's 'unit size' is calculated on the total amount held with BondMason (which increases as you earn interest), it is then rounded up to the nearest £10. So 1% of £5,000 is £50. As soon as interest is earned, then 1% of £5,001 is £50.01, which is rounded to £60. Obviously, for holdings of less than £10,000 the rounding up has a bigger impact. Average holdings on BondMason are ~£17,000. So, £170 becomes £180 etc. Did you not say you were looking into changing this policy to round down and add a 0.5% allocation option? Any ideal of how long these changes will take to be implemented? Rounding down: we discussed the issue of rounding down of our fees (vs. interest) and this has already been implemented. The issue of rounding down loan portions has taken less of a priority to date: is most cases the "1%" and "2%" choices still provides significantly levels of control. Happy to revisit the priority if it is considered an issue by many. 0.5% - this is already being worked on and developed. Timing - TBC. (We've got quite a lot of things coming out at the moment...)
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rick24
Member of DD Central
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Post by rick24 on Feb 1, 2017 16:38:14 GMT
Talking of fees: do you take them at specific time intervals or when they reach a particular level? What happens if there isn't a sufficient cash balance to pay them when due?
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Post by stevefindlay on Feb 2, 2017 11:45:19 GMT
Average holdings on BondMason are ~£17,000. Is that across all accounts, Steve? Or does it exclude the top 1-2%?? And, if all-inclusive, what would the average be if those £100k-plus accounts were excluded? (Or even just the median account size?) Cheers, Ian.. Median. Tends to be a better indicator with these types of data sets (otherwise skewed upwards by larger clients as you note).
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