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Payments & Security
Where is money held before it is on loan?
Funds in your holding account and funds on market waiting to be matched with borrowers are held in cash. These funds are held on trust in an account with an Australian Authorised Deposit-taking Institution, in the name of RateSetter’s appointed custodian.
The custodian also acts as the legal lender of record in relation to loans made to borrowers.
Are my funds guaranteed by the Government?
RateSetter is not a bank, and RateSetter investor accounts are not bank accounts. RateSetter is neither authorised under the Banking Act 1966 (Cth), nor supervised by the Australia Prudential Regulation Authority. As such, the depositor protection provisions in section 13A of the Banking Act will not cover your investment.
RateSetter is regulated and licensed by ASIC, and holds both an Australian Financial Services Licence (number 449176) and an Australian Credit Licence (number 449176).
Learn more about our compliance.
View ASIC’s Money Smart website to learn more about peer-to-peer lending.
What happens if a borrower misses a payment?
In the event that a borrower is late with their payment or defaults on their loan, the Provision Fund may be used to compensate investors for any loss.
The Provision Fund is neither a guarantee nor an insurance product. However, to date, every investor has received every cent of principal and interest owed to them.
For more information, please see the Product Disclosure Statement.
How long do deposits and withdrawals take to process?
When making a deposit into your RateSetter holding account, the funds arrive the following business day. This can occasionally take longer depending on bank processing times.
In some circumstances, deposits may require manual reconciliation due to the use of an incorrect payment reference. If this occurs, we may require a receipt for the transaction.
If you make a withdrawal from your RateSetter holding account, the funds should arrive in your bank account the following business day. This can occasionally take longer depending on bank processing times.
How do I withdraw funds?
You can withdraw some or all of the cleared funds in your holding account to your nominated bank account at any time. Withdrawals can be made as a one-off transfer, or you can elect to establish an automatic, periodic withdrawal. The minimum amount for any withdrawal is $1.
You are not able to withdraw any funds that are on loan or that are on market. If you wish to withdraw funds that are on market and waiting to be matched with loans, you will need to cancel the relevant lending orders.
If you wish to withdraw funds that are currently on loan in the 3 Year Income, 5 Year Income or National Clean Energy lending markets, you may be able to use the early access transfer feature to exit your investments prior to withdrawing these funds.
To withdraw funds from your holding account to your nominated bank account, log in to your RateSetter Account and click the “Withdraw” link on the left hand menu.
For more information on withdrawing funds, please read our Product Disclosure Statement.
How do I transfer funds into my account?
Before you can start investing, you need to transfer funds into your RateSetter account. To do this, log in to your RateSetter account, then click ‘Transfer funds in’. The minimum initial amount you can transfer into your account is $10.
You can transfer funds into your account using BPAY or a bank transfer. If you choose to conduct a bank transfer, please make sure to include the payment reference we provide. This will help us identify your funds.
We will confirm via email when we’ve received your funds and made them available in your holding account. Funds will ordinarily appear in your holding account on the next business day after you make a transfer, depending on your bank.