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LC should offer interest on the cash account

Started by Peter, August 19, 2016, 11:00:00 PM

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rj2


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.


jennrod12

$100 is one percent of $10000, and you don't even have to leave it in cash!

Jenn

rawraw

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




fliphusker

rj2, have you looked into FOLIO?  Ya I know, I am beating the FOLIO drum again.  https://forum.lendacademy.com/Smileys/default/tongue.gif" alt=":P" title="Tongue" class="smiley" />  Or is IRA not allowed to invest in FOLIO?  (Think I read that somewhere.)

TravelingPennies

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.






Debt Free

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.

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