RateSetter becomes first major marketplace lender to remove all exit fees.
Leading UK marketplace lender RateSetter has announced the removal of all the early exit fees from its monthly investment market. Monthly market investors are now able to withdraw their money from the platform - before the expiration of their contract -, without paying a penny, as long as RateSetter has new investors to replace them.
Currently RateSetter offers investors the opportunity to get their money back at any time, by selecting a “sell out” option at the cost of a 0.72% fee. This new feature removes that fee for monthly market investors only but the charge remains in place for RateSetter’s one-year, three-year and five-year investments.
“Ever since our launch in 2010, we have been proud to lead the way in innovation. We pioneered the concept of a Provision Fund to protect investors and were the first in our sector to introduce a monthly investment market. As our customer base continues to grow strongly and our market broadens and deepens, we are delighted to again lead the way by combining attractive returns for investors with free and fast access to their money.”
RateSetter argues that this new “easy access” feature will be also available for its soon-to-launch Innovative Finance ISA. Only last week, the platform issued an update on its new product, claiming that investors will be able to choose between four IFISA options, with terms ranging from 1 month to 5 years. Investors will also be able to choose between selecting their own rate or investing at the going market rate. Investing in RateSetter via an IFISA wrapper does not affect provision fund coverage and there will be no management fees for investors.
This new development follows on from crucial milestone for the online lender. In January RateSetter lent its one-billionth pound following in the wake of Zopa and Funding Circle, although in terms of platform growth it hit this target quicker than any of its rivals , according to AltFi Data.
“With our great rates of return, excellent track record of investor protection and now easy access, RateSetter is reintroducing the concept of value in finance.”