Title: LC should offer interest on the cash account
Post by: rj2 on August 19, 2016, 11:00:00 PM
Post by: rj2 on August 19, 2016, 11:00:00 PM
I know, it's supposed to be peer-to-peer lending, not a bank. But why not? Why not turn the cash account into a high-interest savings account. Pay us something like 0.75% to 1% on our cash balances. I'm sure that LC can find something to do with the money, and when we use it to buy a note they see the cash transfer coming a few days in advance--so they could easily manage their investments.
Why would I want this? Here's why:
I"m continually debating whether to transfer another $10k to lending club in my IRA. I have had good returns on the $7k I have invested at LC now, and I'd like to add to my investment. BUT, I just can't see how I can get $10k invested in $25 notes in any reasonable amount of time given the paltry number of notes being listed.
So I don't transfer my money, even though LC is offering me a $100 bonus if I do. I just can't see how I would get my money invested in any reasonable amount of time.
So how does paying interest on cash balances help? Well, at least I'd be getting SOMETHING for my money while I wait to invest it.
If they don't want to pay cash balances on the cash account, they could offer a savings account on the side, and move cash in and out of it between the "checking" type main account balance. I don't know.
Title: LC should offer interest on the cash account
Post by: yojoakak on August 19, 2016, 11:00:00 PM
Post by: yojoakak on August 19, 2016, 11:00:00 PM
I miss the early 2000's.
"Rate Chasers Are Online and Moving Cash Quickly"
http://www.nytimes.com/2007/10/13/business/yourmoney/13money.html?_r=0
"Rate Chasers Are Online and Moving Cash Quickly"
http://www.nytimes.com/2007/10/13/business/yourmoney/13money.html?_r=0
Title: LC should offer interest on the cash account
Post by: jennrod12 on August 19, 2016, 11:00:00 PM
Post by: jennrod12 on August 19, 2016, 11:00:00 PM
$100 is one percent of $10000, and you don't even have to leave it in cash!
Jenn
Jenn
Title: LC should offer interest on the cash account
Post by: rawraw on August 19, 2016, 11:00:00 PM
Post by: rawraw on August 19, 2016, 11:00:00 PM
Yea, they should give us high interest rates because they make so much money already and should just increase our returns! Where do I sign the petition! #NoInterestAccountsMattersToo
Title: LC should offer interest on the cash account
Post by: Rob L on August 19, 2016, 11:00:00 PM
Post by: Rob L on August 19, 2016, 11:00:00 PM
Title: LC should offer interest on the cash account
Post by: TravelingPennies on August 19, 2016, 11:00:00 PM
Post by: TravelingPennies on August 19, 2016, 11:00:00 PM
Title: LC should offer interest on the cash account
Post by: TravelingPennies on August 19, 2016, 11:00:00 PM
Post by: TravelingPennies on August 19, 2016, 11:00:00 PM
Title: LC should offer interest on the cash account
Post by: fliphusker on August 19, 2016, 11:00:00 PM
Post by: fliphusker on August 19, 2016, 11:00:00 PM
rj2, have you looked into FOLIO? Ya I know, I am beating the FOLIO drum again. 
Or is IRA not allowed to invest in FOLIO? (Think I read that somewhere.)
Or is IRA not allowed to invest in FOLIO? (Think I read that somewhere.)
Title: LC should offer interest on the cash account
Post by: TravelingPennies on August 19, 2016, 11:00:00 PM
Post by: TravelingPennies on August 19, 2016, 11:00:00 PM
I have a folio account. I can only find a handful of notes that meet my standards there as well. Some. But not a lot.
A year ago or was slow getting my money invested when I transferred in about $7000, but now it's a lot worse.
A year ago or was slow getting my money invested when I transferred in about $7000, but now it's a lot worse.
Title: LC should offer interest on the cash account
Post by: TravelingPennies on August 20, 2016, 11:00:00 PM
Post by: TravelingPennies on August 20, 2016, 11:00:00 PM
Title: LC should offer interest on the cash account
Post by: TravelingPennies on August 20, 2016, 11:00:00 PM
Post by: TravelingPennies on August 20, 2016, 11:00:00 PM
Title: LC should offer interest on the cash account
Post by: TravelingPennies on August 20, 2016, 11:00:00 PM
Post by: TravelingPennies on August 20, 2016, 11:00:00 PM
Title: LC should offer interest on the cash account
Post by: Emmanuel on August 21, 2016, 11:00:00 PM
Post by: Emmanuel on August 21, 2016, 11:00:00 PM
Title: LC should offer interest on the cash account
Post by: TravelingPennies on August 21, 2016, 11:00:00 PM
Post by: TravelingPennies on August 21, 2016, 11:00:00 PM
Title: LC should offer interest on the cash account
Post by: Debt Free on August 26, 2016, 11:00:00 PM
Post by: Debt Free on August 26, 2016, 11:00:00 PM
But, directly to the "interest on cash account" OP, I am not in favor. Cash in my Fidelity and E*TRADE accounts earns me like 0.01%, so why should LC be different? My interests (no pun) are far better served given an LC that survives and prospers (no pun again). If they make a bit off the float then good for them. Guess I'm more worried about LC than me, because if LC fails I have bigger problems.
I agree 100%. 10-20 years down the road, who knows? Maybe they will. But best to keep it simple and put that 0.01% to work stabilizing and improving the product.
I agree 100%. 10-20 years down the road, who knows? Maybe they will. But best to keep it simple and put that 0.01% to work stabilizing and improving the product.