Ratesetter Lenders Account, $25 for You & Your Friend with Referral Link

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Go to Deal

JoelT on 01/10/2015 - 11:41 ratesetter.com.au (201 clicks)
Last edited 10/12/2015 - 16:47 by 3 other users

If anyone's interested in giving Ratesetter p2p lending a go, they currently have a referral bonus in place:

$25 for new members and $25 to the referrer. $50 for new members and $50 to the referrer

Offer is between September 29 and December 31 January 31 2016 for the first 1,000 referrals, with a maximum of 5 referrals per member.

From their website:

Peer-to-Peer Lending with RateSetter Australia

• Attractive returns: RateSetter offers attractive returns by connecting you with creditworthy borrowers
• Simple: simply select a term, amount, and rate you wish to earn
• Provision Fund protection: the Provision Fund can help protect you from borrower late payment or default
• A peer-to-peer pioneer: the RateSetter group is one of the largest peer-to-peer lenders in the world

Unfortunately, the $25 $50 for new members is only credited after your first $1,000 loaned (within the first 30 days), so this won't appeal to many people who weren't already contemplating signing up.

The head of operations for Ratesetter (glennriddell) is a member of these forums if you have any questions. I've been a member for 2 months now and found it be smooth so far.

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MOD: Please

• Do not add your referral link in the comments.
• Use the user-referral system to add your referral link to RateSetter. Click on the edit link in the grey Referral Links box below.

Update 10/12: Deal extended from 31/12/15 to 31/1/16 and referral now $50 instead of $25, thanks to Tafe

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Here's my referral URL if anyone is interested.

Related Stores

Plenti (Previously RateSetter)

• 

  gringo on 01/10/2015 - 12:13

  +2

  Looks good to me! - btw:max 5 referrals per person though.

  • 

    JoelT on 01/10/2015 - 12:20

    Thanks for pointing that out. I'll update the post.

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  Moderatorscotty on 01/10/2015 - 13:44

  Just set up the referral system for RateSetter so people can now put their own referral links there. Please note that as the referral is capped at 5, I have set it up so that your referral code expires after 30 days. If you have not reached your limit, you would need to re-enter your referral code into the system again.

  • 

    JoelT on 01/10/2015 - 13:56

    Thanks scotty.

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  kyttiekat on 01/10/2015 - 14:25

  Looks good! Decided to finally take the plunge. Will try out a small amount and see what happens.

  PS since a lender can submit a lender order with their preferred rate - am I right to assume a borrower will always select the lowest rate? In which case, should my lender order always either match the lowest rate, or undercut it, in the hopes of getting a borrower? Or what's the use case for setting a higher rate?

  Thanks in advance!

  • 

    JoelT on 01/10/2015 - 15:22

    +2

    I'm not 100% on this, but here's my understanding of the matching system. Anyone wiser out there, please let me know how wrong I am.

    Borrowers loans are matched to lenders in a queue from lowest rate upwards. The lower rate you offer, the closer to the front of the queue you become. If you undercut everyone, you WILL be the next one matched, but this isn't always the best approach.

    A borrower will come along wanting some money, say 20k for a car, and will target the lowest rate - but if there's not enough funds available at those rates, they'll need to accept some higher offers (averaging the rates) or leave their borrowing offer on the market for a while.

    As a lender, I've found the best tactic is to keep an eye on the Ratesetter Data > Volume page > 'Live Applicant Demand' in your account to see how much borrower money has been approved and will soon hit the market.

    If, for example, you know borrowers will be asking for 45k in the coming days, you can put an offer for a slightly higher rate on the market with some reassurance that the lower rates will be wiped out first. If there's no upcoming demand, then put in a low offer and pray.

    • 

      kyttiekat on 01/10/2015 - 17:04

      Hi JoelT, thanks so much for your thoughts on this!

      That makes a lot of sense. Will have a go tomorrow when my funds get transferred over.

      If you don't mind me asking, how long on average do you find your money still on market, ie haven't been allocated to a borrower yet? I know it totally depends, but just wanted an idea.

      Thanks again. :)

      • 

        JoelT on 01/10/2015 - 19:26

        +1

        Hi Kyttie,

        I like to hedge mine - lots of small loans to many different people as opposed to giving large amounts to single borrowers. It lowers the risk of losing lumps of money should a borrower default on their payments (current default rate is around <2.6%). You can average out some decent rates if you're lucky with timing.

        Since starting, I've been putting about 2 per week on the 5-year market. The vast majority get matched within 12-24 hours, but I've had to wait up to 48 hours . Any principle & interest payments get added onto the next round of investments. So far so good.

        Good luck!

      • 

        Associatedglennriddell @ Plenti (Previously RateSetter) on 02/10/2015 - 15:02

        @JoelT:

        Hi Joel,

        Actually, our default rate is 0%; 2.6% is the expected default rate.

        In any event, the purpose of the Provision Fund is to protect investors from late payments or defaults. There have of course been missed payments, but thanks to the Provision Fund every lender has received every cent of principal and interest due.

        Regards,
        Glenn

      • 

        kyttiekat on 02/10/2015 - 21:50

        @JoelT: Thanks - sounds like a reasonable plan! I've just put mine on the market. Fingers crossed to see how they go. :)

        Thanks again and good luck to you too.

        PS do you do any other type of investing? eg EFTs / index funds etc, that people keep referring to as providing higher returns than RateSetter (with lower risk?) anyhow? RateSetter seems a bit easier to get my feet wet in.. so far.

      • 

        JoelT on 03/10/2015 - 07:59

        @glennriddell:

        Thanks for clarifying the default rate Glenn.

        I have another question - has Ratesetter investigated quicker ways for lenders to deposit money into their holding accounts?

        The current method using BPAY or POLI can take anywhere from 18 to 80 hours to get the money transferred, depending on time of week. For a market where timing is everything, this wait can be an eternity. There have been a few situations where I would've loved to thrown a few extra loans on the market, to strike while the iron was hot. But my money was stuck in cyberspace for a day or two. Weekends are the worst. If you don't beat the 3PM Thursday cutoff, you're waiting until Monday or Tuesday when the good rates have inevitably evaporated.

        Would you consider allow lenders to deposit money instantly using Visa debit or Mastercard debit (low sums for security sake, say <$500) ?

        Thanks for your time!

      • 

        JoelT on 03/10/2015 - 08:47

        +1

        @kyttiekat:
        Hi Kyttie, I'm very new to the investment game as well, other than a basic savings account with ING and paying extra off the mortgage. :)
        Currently addicted to the usual investment gurus like Mr Money Mustache and r/ausfinance.

        Will probably look at ETFs or managed funds (Vanguard is always mentioned) in the not too distant future. Ratesetter is just super easy to start with - minimal starting amount, no brokers, BPAY, no foreign currency, easy tax reporting etc.

        Comparing rates, I suppose it matters which market you're comparing. Below are the current Ratesetter market rates (before income tax and including fees, IF you reinvest all your principal & interest at similar rates). If anyone notices my comparisons are wrong, please correct me.

        1 month rate 3.5% - quite poor. same as a good savings account like ING, but with that you get zero risk and instant access to your money
        1 year rate 5.4% - better, but if you have a mortgage with an interest rate greater than 3.65% (almost all homeowners), you'd be better off throwing your money in there. A mortgage rate of 4.19% (tax-free in essence) would be equivalent of saving 6.20% before tax if you're in the middle tax bracket.
        3 year rate 8.5% - probably equivalent (if not slightly better) than a U.S. focused ETF if you hold on for the long term (say 7-10 years). I need to do more reading on this.
        5 year rate 10.0% - pretty damn good this weekend I must say. I'm not sure if a better rate could be had without lots hard work and research?

      • 

        kyttiekat on 04/10/2015 - 15:44

        @JoelT: Hi Joel,
        Totally agree about how easy RateSetter has been!

        And yep, I had the same thoughts about the current market rates. No point doing 1 month, so I'm trying out 1 year for now.

        Those are some good links too - I prefer r/ausfinance just because it's more local.

        Would you ever consider seeing a financial planner / adviser? That's the advice that always seems to come out… but then again, so many horror stories! D:

        I've managed to find an incredible accountant via referrals, but no joy with an adviser yet.

      • 

        Associatedglennriddell @ Plenti (Previously RateSetter) on 05/10/2015 - 16:24

        @JoelT:

        Hi again,

        If you use BPAY, funds will ordinarily be credited to your holding account the next business day - but I completely agree even that can be too long. Suggestions for alternative payment methods are always welcome!

        Two issues, merchant/interchange fees and charge back periods, mean it's unlikely we'll ever be able to accept debit (or credit) card payments in Australia.

        Regards,
        Glenn

• 

  ronnknee on 01/10/2015 - 16:33

  Even though there's a pool of money for protection, I really don't like how there's so much uncertainty in the wording.

  you may be protected
  there is no guarantee or warranty as to any protection from the Provision Fund
  we cannot guarantee nor warrant that you will be compensated

  • 

    gringo on 01/10/2015 - 17:16

    I think while they are in their launch phase they will work pretty hard to make sure people are compensated. That said, the interest rates don't quite reflect the risk IMO. I like the idea generally though.

  • 

    Associatedmilsomb @ Plenti (Previously RateSetter) on 01/10/2015 - 17:46

    +1

    Hi ronnknee,

    I'm Ben Milsom, Head of Marketing at RateSetter. I thought I would just jump in and clarify why we have such wording.

    The RateSetter group globally is extremely proud that thanks to the Provision Fund concept none of our lenders - big or small - have ever missed a cent of capital or interest due.

    However, we're very careful to remind our lenders that the Provision Fund is not a guarantee or an insurance product, and in the event a compensation claim is not made following a borrower late payment or default a lender may suffer financial loss. There has never been a situation to date where we have not made a claim, but we want to ensure lenders aren't mislead about the nature of our Provision Fund.

    If you're thinking about investing with RateSetter you should have a read of our Product Disclosure Statement. It's comprehensive yet readable, and is available at https://www.ratesetter.com.au/documents/document/pds

    If you have any further questions about peer-to-peer lending or RateSetter, Glenn (our Head of Operations) and myself read these forums regularly and we're happy to help. Or if you'd prefer, feel free to send me a private message.

    • 

      LakeVostok on 02/10/2015 - 11:38

      So when someone defaults with a bank, they get companies to chase them for the debt. If someone defaults in making payments in Ratesetter, nothing really happens besides a mark on their credit history? what recourse do lenders have to recover their money?

      • 

        Associatedmilsomb @ Plenti (Previously RateSetter) on 02/10/2015 - 14:54

        Hi barbedwire,

        We have a comprehensive process for recovering borrower late payments and defaults - this responsibility doesn't fall on the lender!

        The process we use is very similar to that used by traditional finance providers, with in house recovery efforts as a first step, and external debt collection and even legal/court action if later required. The enforcement action taken can be far more than just 'a mark on their credit history'.

• 

  machej on 06/10/2015 - 21:55

  +1

  Been with RateSetter as a lender since January. Feel free to ask questions, I have a sizable amount of money spread over different markets. (1,3,5 year)

• 

  powerhead on 04/11/2015 - 16:30

  Great experience for me with RateSetter so far.
  For those hesitant to get started, there's also a forum thread here on OzB with some useful info

• 

  Tafe on 10/12/2015 - 16:32

  +1

  Merged from Ratesetter Lenders Account, Now $50 (Was $25) for You & Your Friend with Referral Link

  If anyone's interested in giving Ratesetter p2p lending a go, they currently the referral bonus in place has now doubled until 31/01/2016

  $50 for new members and $50 to the referrer.

  From their website:

  Peer-to-Peer Lending with RateSetter Australia

  Attractive returns: RateSetter offers attractive returns by connecting you with creditworthy borrowers
  Simple: simply select a term, amount, and rate you wish to earn
  Provision Fund protection: the Provision Fund can help protect you from borrower late payment or default
  A peer-to-peer pioneer: the RateSetter group is one of the largest peer-to-peer lenders in the world

  from the Email:

  The holiday season is upon us!

  As a special gift, we’re making it even more rewarding to introduce your friends and family to RateSetter.

  Introduce a friend to RateSetter and, if they register and lend $1,000 before 31 January 2015, we'll give both of you a bonus $50*.

  Sharing RateSetter with friends and family is easy:

  Login to your RateSetter account
  Click the "Earn More" tab
  Share your unique referral URL or click on the social sharing buttons
  When they lend $1,000 we'll credit your holding accounts with $50
  Hurry - this offer is only available until 31 January 2015.

  Love, Tafe

  • 

    spackbace on 10/12/2015 - 16:38

    Update to referral deal isn't a valid deal

    https://www.ozbargain.com.au/wiki/help:deal_posting_guidelin…

    In the case of long running referral only deals: All subsequent “announcements” about the referral program shouldn't be posted as new deals, including updates to the referral program. This does not include limited time referral only deals where the previous offer was expired/ended and is now being offered again. You may post a forum topic about any updates to a referral program (with a link to the referral wiki or referral system only).