RATESETTER’S overhaul of its popular Rolling Market product has come into force on the platform.
The ‘big three’ peer-to-peer lender has removed the ability for investors to set their own rate on reinvested funds and altered how returns are paid.
RateSetter confirmed in a blog post on its website on Friday that the changes had come into effect as planned on 6 June.
“The new Rolling Market keeps the features that investors value most, while making it even easier to put your money to work,” said RateSetter.
Read more: RateSetter overhauls Rolling Market product
Investors are no longer be able to set their own rate on reinvested money and now have to use the market rate, based on supply and demand on the platform. They are still able to set their own rate when investing new money.
In another change, those that withdraw funds are 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.
People investing new money into the Rolling Market can choose either the prevailing market rate or set their own rate.
The platform’s latest Rolling Market rate is 2.5 per cent.
“At a platform level, we believe that we are reducing the risk of not being able to access your funds when you want them because we are ensuring that money does not leave the system unintentionally,” said RateSetter.