RATESETTER has unveiled a series of changes to its Rolling Market product, removing the ability for investors to set their own rate on reinvested funds and altering how returns are paid.
The peer-to-peer lending platform said its Rolling Market product – that has a rate set by supply and demand and lets investors access their funds free at any point – is its most popular product but customers can find it complicated when rates fluctuate.
Currently investments in the Rolling Market are reinvested each month, meaning the interest rate can change, but from 6 June, investments will remain matched to the same borrower until the loan is repaid, so the return will remain the same.
The rate will only change when the money is reinvested.
From 6 June, investors will no longer be able to set their own rate on reinvested money and will have to use the market rate, based on supply and demand on the platform. They will still be able to set their own rate when investing new money.
In another change, those that withdraw funds will not be able to invest again for 14 days in an effort to stop the market being manipulated by investors taking funds out to reinvest immediately when the market rate is higher.
“We’re excited about these changes because we believe that this simplification preserves the key features of the Rolling Market whilst bringing greater stability and predictability for both you, our investors, and for our platform,” RateSetter said.
Its latest Rolling Market rate is 2.8 per cent.