UK peer-to-peer (P2P) finance platform Assets Capital has raised the interest rate on its 30 Day Access Account (30DAA) by 0.5 per cent to 4.75 per cent for a limited time.
The 30DAA allows peer-to-peer lenders to invest automatically in loans and features automatic diversification to spread risk.
Investors will have until midday on 11 May to take advantage of the new rate and will benefit from a capped return of 4.75 per cent for up to 90 days after an investment is made. After this, the account will return to its original rate of 4.25 per cent.
The increase marks the first time one of the major P2P players has raised the interest rate on a core account in 2017.
Stuart Law, CEO of Assetz Capital, says: “The 30 Day Access Account has been very popular since its introduction nearly a year ago. Recently Assetz Capital has experienced particularly strong growth in borrower demand as a business and has flourished whilst many other platforms have struggled, which has led to some of them dropping rates on their key accounts.”
The 30DAA invests in both short and long-term loans and interest is earned and paid monthly. The account retains substantial cash balances in order to facilitate quick access in normal market conditions for investors who require their investment back on the 30 days’ notice, although access times cannot be guaranteed.
Investors can automatically invest any amount from GBP1 in a diverse portfolio of secured business loans that have passed Assetz Capital’s strict credit checks.
Law says: “The 30 Day Access Account opens up the world of P2P lending to new investors who want the chance to earn a fair return, but also have a degree of liquidity on their invested capital in normal market conditions. The account is already a hugely popular and competitive choice in the P2P market and we’re expecting to see a sharp increase in lenders who take up this attractive limited time offer.”
Assetz Capital has over 18,000 registered investors and to-date over GBP235 million has flown through the platform, earning investors a total gross interest of over GBP20 million.