Flexible features so your money works harder

At RateSetter we are always looking for ways to make investing easier, faster and more flexible. To this end, we’re pleased to announce several changes to the RateSetter platform for both existing and new investors.

Economical early access transfers

In December 2018 we launched our Early Access Transfer feature to provide a simple way for investors to access funds invested in the 3 or 5 year income lending markets before term, provided there are funds from other investors to replace interests in those loans.

To make this an even more useful tool, we have now lowered the Early Access transaction fee from 3.0% to 1.5%. This change will reduce the cost of existing loans early, helping to provide investors with more peace of mind should their circumstances change. This new fee applies to all early access transfers after 18 April 2019.

Keep rollin’

Our 1-month lending market operates slightly differently to other markets, in that it funds loans that are longer than the indicative term of the market (1 month). To reflect this fact and make it clearer to new investors, we’ve renamed the ‘1 Month’ lending market the ‘1 Month Rolling’ market.

Additionally, due to high demand for investments in this shorter-term lending market, we have also extended the term of loans funded from this lending market to three years, to help increase the supply of investment opportunities. The period funds may be committed to a loan in this lending market accordingly increases from 23 months to 35 months.

Fresh investments for fresh faces

One of the best ways to maximise returns from a RateSetter investment is to ensure funds are always ‘on loan’, earning a return. An easy way to do this is to use the reinvestment feature to reinvest borrower loan repayments automatically.

To ensure new investors are getting the most from their RateSetter account, from 18 April 2019 reinvestment settings are ‘on’ by default for all new investors. Under the default settings, borrower payments will be reinvested back into the lending market where the payment came from – at the market rate. This change only affects investors who open a RateSetter lending account after 18 April 2019. Investors can modify reinvestment settings at any time using the ‘reinvestment settings’ link in their RateSetter account.

To launch these new features and to reflect other amendments to the platform, we have released a new Product Disclosure Statement for the RateSetter Lending Platform.

This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of RateSetter as at the date of publication and may later change without notice.