Assetz Capital’s first ever rate rise saw investors add around GBP10 million to their Access Accounts in the first month.
The peer-to-peer business lender moved target interest rates for the Quick Access Account and 30-Day Access Account from 3.75 per cent to 4.10 per cent and from 4.25 per cent to 5.10 per cent respectively. The rate increase was announced on 16th May 2018 but was effective from 1 May 2018.
The increase in investment was across both ISA-wrapped and non-ISA accounts and has helped the ISA approach GBP50 million of investment in its first six months since launch.
Stuart Law, CEO at Assetz Capital, says: “We know how much our lender community values the Access Accounts. We’ve been very encouraged by the reaction to the rate rise by our existing lender base and have welcomed plenty of new investors to the fold too – many of whom are opting for an ISA-wrapper and transferring existing ISAs onto the platform.
“Our Access Accounts are designed to do what they say on the tin and deliver ready access to cash in normal market conditions – although we make it clear to all investors that access times cannot be guaranteed. We continue to see the average balance of individual investors actually grow month-on-month, with average investment for invested lenders growing to around GBP23,000 per account, and we have serviced over GBP768 million of withdrawal requests on time, every time for our investors to date within the Access Accounts.
“Borrower demand remains high, putting us in a strong position as we move towards the second half of the year – steadfast in our mission to boost the economy, and therefore jobs and GDP, through providing growth capital to SMEs and fair returns for investors.”