bg
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Post by bg on Apr 13, 2017 9:28:39 GMT
To clarify all those questions - there's a new account on your dashboard (top if you don't have a custom order, should be next to the 30DAA if you have customised the ordering) that pays the uplifted rate. You'll be able to invest into that account until the cut off point on 11th May after which it will revert to being display only until such time as the uplifted rate no longer applies. Then funds will be moved automatically into the 30DAA along with any outstanding withdraw requests so that you can provide the 30d notice at any point and it will just work. Yes this is a promotion to attract new investment funds onto the platform. Yes it applies to everyone. No it's not an uplift on existing 30DAA investments. Yes we're likely to run other promotions throughout the year of different types some of which may include a more generalised uplift in rates. I think you will find that a lot of clued up people give notice on their existing 30DAA to move it to the new rate one in 30 days time. May not be an issue but it could be in 30 days time that several million (or more) of funds suddenly has to be deposited in cash accounts ahead of people moving it to the new 4.75% account. This may well have the unforeseen impact of AC having to sell down a load of loans (or attempt to sell at least) to meet the cash call.
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Post by bracknellboy on Apr 13, 2017 9:28:48 GMT
Just for anyone thinking of doing same, I moved from cash from QAA to 30 day just now, and despite the 30 day showing the 4.75 rate, after the investment, I now have a 30 day 4.25 (with my cash in it) and a new 30 day 4.75 with a zero balance. Perhaps this only applies to brand new funds? [edit] post crossed with above. Pointed out above only applies to new funds, which is certainly not clear from the email, else I would not have tried this. I will however send some new!So that cash you moved from the QAA can start benefiting from the higher rate in 30 days time if you give notice to withdraw it now  Ah, no they can't because the cut off is 11th May 
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Post by chris on Apr 13, 2017 9:29:33 GMT
To clarify all those questions - there's a new account on your dashboard (top if you don't have a custom order, should be next to the 30DAA if you have customised the ordering) that pays the uplifted rate. You'll be able to invest into that account until the cut off point on 11th May after which it will revert to being display only until such time as the uplifted rate no longer applies. Then funds will be moved automatically into the 30DAA along with any outstanding withdraw requests so that you can provide the 30d notice at any point and it will just work. Yes this is a promotion to attract new investment funds onto the platform. Yes it applies to everyone. No it's not an uplift on existing 30DAA investments. Yes we're likely to run other promotions throughout the year of different types some of which may include a more generalised uplift in rates. I think you will find that a lot of clued up people give notice on their existing 30DAA to move it to the new rate one in 30 days time. May not be an issue but it could be in 30 days time that several million (or more) of funds suddenly has to be deposited in cash accounts ahead of people moving it to the new 4.75% account. This may well have the unforeseen impact of AC having to sell down a load of loans (or attempt to sell at least) to meet the cash call. Hence the cut off date being May 11th.
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Post by d_saver on Apr 13, 2017 9:30:02 GMT
Just for anyone thinking of doing same, I moved from cash from QAA to 30 day just now, and despite the 30 day showing the 4.75 rate, after the investment, I now have a 30 day 4.25 (with my cash in it) and a new 30 day 4.75 with a zero balance. Perhaps this only applies to brand new funds? It will apply to any funds moved into the specific 4.75% 30 day account. If you've moved the funds in error to the existing 30DAA then perhaps speak to customer services as they may be able to organise the funds being moved across for you if they think it's reasonable to do so. I suspect that there will be a narrow window between the email having been sent and the account going live within which they will accept that as being the case. Hmmm, I'd absolutely swear their was only 1 30 day with a 4.75 listed on my page when I tried to make the investment. After, there was 2! I will speak to customer services. Thanks.
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greatmarko
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Post by greatmarko on Apr 13, 2017 9:30:25 GMT
Or we're a growing business and need to grow the lender base and lent funds alongside our growth in borrower origination... Last week was a record week for attracting funds to the platform but we want to accelerate that further to keep up with our planned level of growth. If you want to "grow the lender base" and "attract funds to the platform", why not increase the QAA rate to 3.9% for everyone - not just for a select few!?
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Post by Butch Cassidy on Apr 13, 2017 9:30:40 GMT
Whilst I think AC are a well run, professional & competent platform as a future shareholder I am wondering about their current direction & the impact of risk concentration on performance & specifically future liquidity; Having largely dispensed with independent underwriters & invited MLIA holders to depart the level of DD has undoubtedly suffered & rates have plummeted to 7/8% typically. So after the origination of loans they simply get passed to the QAA to fund & issue onto the platform, hopefully getting largely absorbed by GBBA/GEIA accounts & any remaining MLIA holders.
Growth can now be funded by attracting building society type savers with attractive interest rate offers such as the 4.75% currently being touted in glossy promotional e-mails & those with a slightly higher risk appetite will be tempted into the 7% accounts. All seems rosy - no more difficult DD questions to answer, no complaints about pricing for liquidity & not risk, no prolonged drawdowns, just keep feeding the machine & accumulating the fees. I have no doubt that this source of cheap money is almost unlimited & will only be increased as an IFISA is inevitably launched but my concern is that it may prove fickle. How will these saver investors react when they realise some of their funds are actually at risk, as I’m sure it says in the small print!
It would only take an external shock such as a fringe P2P platform failure or two to create a mass panic & fund exodus. Even something as simple as a Martin Lewis type character announcing that such P2P investments were more risky than people thought & investors should switch to XYZ account instead may prove very problematic for platform liquidity. The existing 100-150 low rate loans currently available on the SM would seem like the good old days of high liquidity. I am sure that this type of scenario will have been war gamed at AC Towers & maybe an extremely low probability of happening but the lessons of 2007/8 suggests a credit/liquidity crunch can occur very quickly & often from the most unlikely source.
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Post by chris on Apr 13, 2017 9:31:02 GMT
It will apply to any funds moved into the specific 4.75% 30 day account. If you've moved the funds in error to the existing 30DAA then perhaps speak to customer services as they may be able to organise the funds being moved across for you if they think it's reasonable to do so. I suspect that there will be a narrow window between the email having been sent and the account going live within which they will accept that as being the case. Hmmm, I'd absolutely swear their was only 1 30 day with a 4.75 listed on my page when I tried to make the investment. After, there was 2! I will speak to customer services. Thanks. No worries, I've just sent them notice that there may be a couple of enquiries along those lines so hopefully they'll have a process in place later today.
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Post by bracknellboy on Apr 13, 2017 9:31:36 GMT
To clarify all those questions - there's a new account on your dashboard (top if you don't have a custom order, should be next to the 30DAA if you have customised the ordering) that pays the uplifted rate. You'll be able to invest into that account until the cut off point on 11th May after which it will revert to being display only until such time as the uplifted rate no longer applies. Then funds will be moved automatically into the 30DAA along with any outstanding withdraw requests so that you can provide the 30d notice at any point and it will just work. Yes this is a promotion to attract new investment funds onto the platform. Yes it applies to everyone. No it's not an uplift on existing 30DAA investments. Yes we're likely to run other promotions throughout the year of different types some of which may include a more generalised uplift in rates. I think you will find that a lot of clued up people give notice on their existing 30DAA to move it to the new rate one in 30 days time. May not be an issue but it could be in 30 days time that several million (or more) of funds suddenly has to be deposited in cash accounts ahead of people moving it to the new 4.75% account. This may well have the unforeseen impact of AC having to sell down a load of loans (or attempt to sell at least) to meet the cash call. Well they might, but they would be making a mistake....they will need to make use of the earlier referenced time machine to manage that. I suspect the choice of 11th May as cut off date is no coincidence in that regard. EDIT: crossed with Chris. (and not cross with Chris.....just for clarification).
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Post by chris on Apr 13, 2017 9:36:16 GMT
Butch Cassidy - MLIA isn't going away, indeed there are a couple of users currently testing API access which will pander to MLIA users and the more sophisticated types and there'll be further MLIA developments down the road now we're clearing much of the backlog of internal CRM work that has occupied us over recent months. There's also a couple of internal projects to offer new loan types that yield 10+% to cater to the MLIA and those after higher returns. We're wary of market shocks like that and wish to retain and expand upon there being a diverse range of lenders of all shapes and sizes without being beholden to any one subset or channel.
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bg
Member of DD Central
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Post by bg on Apr 13, 2017 9:36:55 GMT
I think you will find that a lot of clued up people give notice on their existing 30DAA to move it to the new rate one in 30 days time. May not be an issue but it could be in 30 days time that several million (or more) of funds suddenly has to be deposited in cash accounts ahead of people moving it to the new 4.75% account. This may well have the unforeseen impact of AC having to sell down a load of loans (or attempt to sell at least) to meet the cash call. Hence the cut off date being May 11th. Very good point!!
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kermie
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Post by kermie on Apr 13, 2017 9:58:40 GMT
Notice / Platform
| Assetz Capital
| RateSetter
| | Instant | 3.75% - QAA
| 3.1% - Rolling
| 30 Days
| 4.25% - 30DAA Regular
4.75% - 30DAA Promotion
| N/A
| 1 Year
| N/A
| 3.1% - 1 Year Market
| 5 Years
| N/A
| 5.0% - 5 Year Market
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RS rates taken from a snapshot of the RS market offers this morning. Not a bad offer from AC. In particular, instant access from AC beats RS's instant access and 1 Year account (even before the promotion). Edit - corrected rates - doh!
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Post by chris on Apr 13, 2017 10:02:02 GMT
kermie - small correction, usual 30DAA rate is 4.25%
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kermie
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Post by kermie on Apr 13, 2017 10:05:02 GMT
kermie - small correction, usual 30DAA rate is 4.25% Ta - you think I'd have checked this properly?! ;-) Corrected.
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jayjay
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Post by jayjay on Apr 13, 2017 10:28:39 GMT
Just for anyone thinking of doing same, I moved from cash from QAA to 30 day just now, and despite the 30 day showing the 4.75 rate, after the investment, I now have a 30 day 4.25 (with my cash in it) and a new 30 day 4.75 with a zero balance. Perhaps this only applies to brand new funds? [edit] post crossed with above. Pointed out above only applies to new funds, which is certainly not clear from the email, else I would not have tried this. I will however send some new!I took money out of my QAA put it in cash and then invested in the promotional 30 day 4.75% account and it let me. This is not new cash just cash sitting in the QAA. I dont see how AC can distinguish between different types of cash once it is transferred in. I also have a withdrawal pending on my 4.25 old 30 day account that will 'mature' before 11 May. I imagine I will be able to put this in the promotional account when it comes through in a week or so time. The rest of my cash in the old 30 day account will not be eligible as I cannot withdraw it in time. I think that is how it works unless someone cares to contradict me.
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Post by chris on Apr 13, 2017 10:35:44 GMT
Just for anyone thinking of doing same, I moved from cash from QAA to 30 day just now, and despite the 30 day showing the 4.75 rate, after the investment, I now have a 30 day 4.25 (with my cash in it) and a new 30 day 4.75 with a zero balance. Perhaps this only applies to brand new funds? [edit] post crossed with above. Pointed out above only applies to new funds, which is certainly not clear from the email, else I would not have tried this. I will however send some new!I took money out of my QAA put it in cash and then invested in the promotional 30 day 4.75% account and it let me. This is not new cash just cash sitting in the QAA. I dont see how AC can distinguish between different types of cash once it is transferred in. I also have a withdrawal pending on my 4.25 old 30 day account that will 'mature' before 11 May. I imagine I will be able to put this in the promotional account when it comes through in a week or so time. The rest of my cash in the old 30 day account will not be eligible as I cannot withdraw it in time. I think that is how it works unless someone cares to contradict me. We're not trying to distinguish in that regard. What we do want to distinguish is people just pulling funds out of the 30DAA to stick into the promotional account, anything else is game as it ties the funds in for at least 30 days if not longer which is also beneficial. So yes it does work how you think.
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Ah, no they can't because the cut off is 11th May 
