RateSetter unveils Access, Plus and Max accounts
RATESETTER has launched its three new investment products along with a pledge to “make investing easier” for its lenders.
The Access, Plus and Max accounts are open to investors as of today (3 October), and offer target returns of three per cent, four per cent, and five per cent, respectively.
Withdrawals can be made from the Access account at any time with no fees; while Plus investors can release their capital at a cost of 30 days’ interest, and Max customers can withdraw cash with a release fee of 90 days’ interest.
Previously, RateSetter investors could access their money within one day on average, but the platform said that the new products will increase liquidity even further.
Mario Lupori (pictured), RateSetter’s chief investments officer, said that the products will improve liquidity and stability for the platform’s investors, while also simplifying the investment process.
Read more: RateSetter to introduce stress testing to provision fund
“The performance of your investment will be more consistent with a stable rate as well as automatic reinvestments which means your money is continuously earning, provided it is matched to loan contracts,” Lupori said.
“Of course, the new products continue to enjoy the collective investment effect of the provision fund which spreads every investor’s risk across the whole loan portfolio and has ensured that to date every investor has earned exactly what they expected.”
The three new products replace RateSetter’s previous rolling, one-year and five-year accounts, where supply and demand was set at a market level.
The new products will base each account’s liquidity on RateSetter’s entire loan portfolio, rather than the liquidity of just one particular market, making it easier for all investors to withdraw cash at any time.
RateSetter has also changed the way the rate of return is calculated. Under the previous system, product returns were based on a trailing average, but the new products have a market rate which is provided by the platform.
“We’re making investing easier,” added Lupori.
“Simply choose your product and interest rate and we’ll take care of everything else.”
Read more: RateSetter’s Mario Lupori on the new product range
