Assetz Capital hikes access account rates
Assetz Capital is increasing rates across all three of its access accounts and has removed the queue for investors.
The quick access account will now have a target interest rate of 3.9 per cent per year, up from the previous target rate of 3.75 per cent.
The 30-day access account has seen its target rate increase to 4.1 per cent from four per cent.
And the 90-day access account is now targeting annual returns of 4.5 per cent, up from 4.1 per cent.
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The UK’s largest peer-to-peer lending platform said these rate increases take effect from 1 September, so the first payment investors will receive reflecting the new rates will be on 1 October.
Both new and existing investments in the access accounts will benefit from the target interest rate boost.
“We will continue to review our rates and aim to provide our investors with attractive, risk-adjusted returns – which given the current surge in inflation impacting our cost of living, have never been so important for so many people,” Assetz Capital said in an email update to investors.
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The business and property lender also announced that it had eliminated the queue for investors to enter the access accounts, meaning they are able to take advantage of the new rate rises immediately.
The peer-to-peer business lending platform altered the way its access accounts work during the pandemic, as heightened withdrawal requests reduced liquidity. It introduced a queuing system and a withdrawal fee that would only be charged during “non-normal market conditions.”
In July, it said that investors’ funds in the queue had started entering the access accounts, thanks to a growing pipeline of loans that were expected to drawdown in the coming months.