Got this in an email, RateSetter are offering double bonus of $100 when signing up through a referral link and making a minimum investment of $1,000 at the moment.
Expires end of Feb 2020, after which the bonus probably goes back to $50.
$100 for New Customers Via Referral (Usually $50) With Minimum $1000 Investment (Referrer Gets $50) @ RateSetter
152
immature on 07/01/2020 - 00:51 files.ozbargain.com.au (684 clicks)
Last edited 07/01/2020 - 10:41 by 2 other users
Last edited 07/01/2020 - 10:41 by 2 other users
Referral Links
Referral: random (5)
$50 for referrer and $50 for referee after investing $1,000 in the 5-year income market.
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Did you contact them about it?
Hi Vikvance,
The eligible referral limit of 2000 has not been reached in any of the RateSetter refer a friend campaigns to date. If you believe you have qualified for a bonus please send an email to [email protected] and one of our team members will be happy to assist you.
Kind regards,
RateSetter
Tempting if it was a bonus 100 for every 1k but just a one off 100 doesn't seem worth it.
No idea what this is
Yes.
Ok
Do you have a computer with the Google installed ? That should help
why and how do you install Google on your computer?
Also want to know how to install Google
This is Ratesetter scam. Don't fall for it. They do not tell you for a long time that you're not getting the money. You find out after they have used your money for a month or more.
Hi Dan,
If you believe you have qualified for a bonus please send an email to [email protected] and one of our team members will be happy to assist you.
Kind regards,
RateSetter
Rep,
What is with the poor 5yr investment rate right at the moment, being only 6.8% down from 7.8% steady for a long time?Hi Chyawala,
Interest rates fluctuate naturally with supply and demand. Typically, borrower demand at this time of year is lower than normal. When borrower demand is low and there are excess investor funds on the platform the rate begins to drop. As the interest rate drops the product becomes more attractive to borrowers and borrower volume begins to build again which may result in a rise in interest rates.
In addition to this, we believe investors are feeling more confident using the platform given the performance and growth of the provision fund, coupled with the addition of the Early Access Transfer feature which may allow investors to exit their positions in some of the longer term markets prior to the maturity date of their loan contracts if they require access their funds early.
The low interest rate environment we are experiencing globally is also driving individuals to look for other investment options to try and earn a more attractive return to what they may be earning in their savings accounts or term deposits.
Kind regards,
RateSetter
I've personally invested about 12k AUD in the past in a 3 year plan and got all of my money back. I guess theres no guarantee but its been legit so far
So the referrer gets $50 and the referree gets $100, 15% just like that in a low interest rate world? Nuh uh. Too dodgy and the wording should say it's bait advertising. This is basically a competition.
Nuh uh. Too dodgy
On face value, the offer isn't that dodgy. Kogan are offering a $500 voucher for signing up for a credit card.
So those banks that offer $10 for just creating an account are offering infinite% interest? It's 15% a month too plus the 3.5% (annualised) or whatever they offer on the deposit if you really want to lose your nut.
Wouldn't compare banks to these guys. Banks are at least APRA regulated and guarantee upto 250k.
Can you lose your $1000
Yes, if the people who you loan the money to don't pay the loan back and the provision fund has run out.
Both unlikely but higher reward requires higher risk.
Yes, theoretically, but nobody ever has.
If the entire economy collapsed within a month to the point where people were lining up at soup kitchens.
Hi Deme,
We are very cautious about who can borrow. Before any borrower is approved for a loan, they are put through a stringent underwriting process performed by inhouse underwriters. Borrowers are identity checked, credit checked and risk assessed. RateSetter only matches investors with creditworthy Australian-resident borrowers.
When a borrower takes out a loan with RateSetter they contribute funds into the Provision Fund which a fund held on trust by an external trustee for the benefit of investors. To date, all Investors have received every cent of their principal and interest repayments as due thanks to the Provision Fund. It is important to note that the Provision Fund is not a guarantee nor an insurance product and your capital may still be at risk.
You can find out more about the Provision Fund at https://www.ratesetter.com.au/investing/provision-fund/
Kind regards,
RateSetter
@RateSetterAus, could someone on your team please look into the broken T&C link?
https://www.ratesetter.com.au/uploads/2019/12/2020.01.02-TCs…
Or please advise of a working link, thanks!
Hi Moocher,
Thank you for bringing this to our attention.
Please find updated T&C link here: https://www.ratesetter.com.au/investor-referral-program-t&cs
Kind regards,
RateSetter
How do you get out of the sophisticated investor requirements?
Is this a mezzanine loan?
Hi Deme,
RateSetter is regulated by the Australian Securities and Investments Commission (ASIC) and is the first peer-to-peer lending company in Australia to be licensed to accept retail investors.
RateSetter holds Australian financial services licence (AFSL) number 449176 and Australian credit licence (ACL) number 449176.
Loans funded through the RateSetter lending platform are personal loans for purposes such as home improvements, holidays, vehicles, or debt consolidation.
Kind regards,
RateSetter@RateSetterAus: I'll ask again,
How did you get out of the sophisticated investor requirements?
Is this a mezzanine loan?
@deme: Hi Demi,
We do not require that investors who choose to become a Member of the RateSetter Lending Platform are sophisticated investors because ASIC has authorised us to operate in respect of retail clients. You can find more details about our Australian Financial Services licence (number 449176) on ASIC's website.
The RateSetter Lending Platform is a registered managed investment scheme. We recommend that you read our PDS which describes the investment.
RateSetter PDS: https://www.ratesetter.com.au/pds/
Kind regards,
RateSetter
I hear a lot of negative stuff about rate setter anyone else going ahead with this? Very tempting
I've been with Ratesetter for a few years and had a good experience. My investment with them makes up about ~10% of my portfolio.
Trick is to set and forget as a lot of the people who complain regularly visit the site and fuss about the interest rates. I also think this should be a long horizon investment, e.g. 20 years.
My advice:
* Choose a % of your investment portfolio you want to put in RS, e.g. $10k
* Move it over and put it "on market" in 5 year loans in 10 parcels. E.g. $1k at a time. This ensures that your initial investment is spread over multiple loans to mitigate your risk. If you put $10k on market at once, you run the risk of lending to one person and if they default, all your money is at risk. If you end up lending to 100 people and one defaults, then you lose $100.
* Once your all invested, set up automatic reinvestment into 5 year loans. If you don't do this, you won't get the ~8% you are chasing as your money needs to be reinvested for 1+ year at least.
* Check on it once or twice a year to make sure the money is moving around as it should.As long as I am getting around 8% give or take I am happy. At writing this, the last 5 year loan that was matched was 6.8% but I am still at 8.1% average over all my 5 year loans; the oldest loan I have is Oct 2018. When this average drops to under 6% I may consider the risk not worth it and start withdrawing.
I am not a shill or sockpuppet. The less people that sign up the better for me as the rate rises and I get better returns (less supply, more demand). I just find it frustrating when people don't understand how p2p lending works.
Agreed, however there is the pool find to guarantee a possible failed repayment.
How I'd the rate suddenly so poor at the moment after a steady 7.8% on the 5yr market, 6.8%, really?
It appears that if there were a deal here it's for an all time low rate loan, not an investment. You should be able to get a good loan rate if the investors are dropping rates massively to meet a non existent borrowers market that's gone on holidays.however there is the pool find to guarantee a possible failed repayment.
This will be worthless in a dramatic recession. The current Provision Fund is about $10.3m and there is "bad debt" of $10.5m. If people who are already clearly struggling the pay loans stop paying, the Fund is $0 very quickly.
https://members.ratesetter.com.au/ratesetter_info/provision_…How I'd the rate suddenly so poor at the moment after a steady 7.8% on the 5yr market, 6.8%, really?
Go here and tick Weekly Volume and only 3 and 5 Year. You can see that the volume negatively affects the rate. Unfortunately 2 things are happening. 1, people are taking on more debt; 2, people are chasing higher yields. It seems at the moment option 2 is winning.Quick and dirty comparison. It seems borrowers are getting loans a few basis points higher than the lenders are receiving interest so yes, all time low rate!
Quick and dirty comparison (files.ozbargain.com.au).
that's a neat pic. Is the 2nd graph homemade from the excel spreadsheet? Do you use any other metrics or data to keep an eye on your ratesetter investment?
@powerhead: Yes 2nd graph is from the Excel sheet.
I don't really pay too much attention to it. I only delve in when someone here or on Whirlpool forums makes a comment that concerns me and I check it myself. @chyawala made me think about the margin RS are getting if the investors are getting paid less so I wanted to confirm that borrowers were also getting cheaper loans as the lending rate drops.
Been with RS for about 3 years now and I am getting the returns they advertised so have no need to keep an eye on the details, got better things to take up my time!
Thanks for the explanation @ Ordinary Consumer. I appreciate the practical tips into managing a ratesetter investment.
Just curious however - if you're looking at a 20 year time frame with a 8% return, why would you favour peer to peer lending over a run of the mill Vanguard diversified index fund?
Is it the lack of volatility, compared to an index fund, that is attractive (although this shouldn't be an issue if the timeframe is 20 years).
The growth Vanguard index fund has achieved the same performance 8% per annum on average, and while volatile, it's an equity stake. Even in a downturn you don't lose anything if you don't sell. Whereas ratesetter is unsecured personal debt, and interests payments to you get taxed at your personal marginal rate (unless it's sitting in a company or other structure, if that's possible). If there's a significant economic down turn and the defaults rise that provision fund is just a drop in the ocean.
Is the attraction the fact that personal lending could be said to be uncorrelated with stock market returns, as an example?
Just curious on your take on this. Thanks for your time if you're able to reply.
Pure diversification play for us. Vast majority of our portfolio is in stock markets as I agree it's a better investment option. However past performance is not an indicator blah blah.
If I could be guaranteed 8% in equities for the next 20 years, for sure I would not be using Ratesetter (unless it was offering >10%!). Had I known 2019 would have done so well in the markets, for sure I would have opted out of RS with early access and gone all in on the US stock market.
You are right about the tax rate and the loss in a significant downturn. I don't plan to rebalance RS to maintain 10% if it drops below that.
I don't recommend RS to my friends who want to get into investing, I tell them to buy a diversified ETF. However once you have your core investments sorted and you start looking for interesting satellite investments, P2P ticks that box imo.
@7hours 44min ago: Thanks for the reply. Actually, as soon as I posted it I realised that 8% average annual return over 20 years for index funds is something you only know AFTER the 20 years have passed!
So it's only a fair comparison if you have a time machine that can allow you to peek at future returns.
I like some aspects of the peer to peer lending concept, but the potential returns for the risks never stacked up for my situation. In some respects my misgivings are inherent to platform economics - all the investors are risking their capital, but the people making most of the profit, without risking capital, are ratesetter. It would be really cool to see a co-operative investor owned peer to peer lender…..
I'm strongly tempted to neg this because I invested as part of the previous offer, and got zero bonus.
Ratesetter are scumbags.
Most likely, the maximum limit of people entitled to the bonus had already been reached, but nowhere in the sign-up process do they tell you about this. So, you sign up & then only after a month, do you find out that you're not getting the bonus.