Investors will be able to arrange to receive a monthly income and set the date on which this is paid to their bank account - this can be made any day of the week, including Sundays.
The new options aim to reduce the effect of ‘cash drag’ which occurs when repayments from current investments are paid into accounts but are not reinvested meaning no income is earned.
Graeme Marshall, Chief Executive of FundingKnight, said the widening of the options for withdrawing cash would serve two purposes.
“The first one is simply to provide investors with a simple ‘regular income’ option; investors wanting regular income can set their preferences and then just leave the technology to do the work,” said Graeme.
“The second purpose is to help people to make their money work harder, bearing in mind that uninvested cash left sitting in an account does not earn interest.
“This is one of a series of tools we are introducing to ensure that everyone has the ability to keep their money fully invested, so they can earn income on all of it.”
FundingKnight’s existing facility which allows investors to make one-off withdrawals will be unaffected by the new change and remains in place.
Leave a comment