Originally posted on 10/04/2010:

Thanks to everyone who has expressed interest in my deposit program thus far. I am significantly increasing some of the deposit rates and tweaking a few things based on your feedback. (Existing deposits will be paid at the agreed terms, with savings accounts switching to the new terms after 1 month.) Details are below...

But first, the loan info:

I offer a variety of loans, as outlined below. If you need an amount not listing below, let me know and I'll be glad to make you an offer. I have eliminated the blog rate due to changes in SBR policy that make blogging less profitable for the blogger.

All loans are subject to approval. I base my decision on both previous loan history and length\quality of posting history. The schedule listed here is for typical posters (0-2 loans repaid) - people with exceptional credit histories will be offered discounted rates upon request.

Special "Starter Loan" to build credit history


Regular Loans
All due dates factor in a couple extra days for not being able to log in, not being credited points, etc. Loans that are more than 3 days overdue will be subject to a 1pt/day penalty.


And now the depositing info...
For people who don't want the work and/or risk of loaning their points, I am now offering a deposit system. The interest is lower than you'd get from making a loan, but so is the risk and the amount of work required. (I have more incentive [protecting my loan business] and ability [100+ point income daily] to pay.) Full disclosure of the bank's current assets/liabilities is listed below so you can assess the potential risk for yourself.

Based customer feedback, I have re-thought my interest rates. I was originally calculating them based on the amount one would expect to receive on a single loan of the same amount. Based on standard SBR terms, one has to wait a lot longer to get the same % return on a large loan, which means lower % interest per month. However, realistically, I will be breaking up large deposits into smaller loans. Thus, I can afford to pay more interest than my previous method of calculation implied. More points means more work for me, so the rate still decreases a bit as you move up the scale - but not nearly as much as before. In fact, for a very large deposit you'll actually get as much or more interest from me as you would lending the points to a single borrower (with significantly less risk). OK, I've rambled enough, on to the options...

The first deposit option works a lot like a standard loan (to me). You transfer me an amount of your choosing and pick your repayment schedule (higher interest for slower repayment). For clarity, I am calling this option the annuity option. The following table is for small-medium amounts. If you want to deposit more than 200, let me know and I'll offer you a rate higher than what is listed below.


The second option is a single lump sum-payment. Instead of getting weekly payments, you only get one payment at the end of the loan period. This option pays the highest interest since it allows me to use the full amount of your deposit longer. I have increased the %s and/or decreased the length considerably for larger loans since my original post. Longer time periods carrying significantly higher interest are available upon request.


The third option is a savings account. Under this option, withdraw (repayment) is done by request only. However, you can withdraw or add to your balance at any time. For each full month that your points are kept on deposit, you'll earn interest according to the following chart. (In the event of withdraws or additional deposits, average balance will be used in calculations.) In order to maximize interest, I am now offering two choices. Under type A savings, the entire balance is payable on demand. (Amounts up to 200 will normally be returned within 24 hours; amounts above that may take a few days. All points I get in will go toward repayment until the balance has been returned.) Under type B savings, there is a 200 pt/week withdraw limit.

The chart is cumulative, so if you deposit 250 points, for example, you'd get 11% on your first 100, 7% on the second 100, and 6% on the last 50.


Interest, if not withdrawn, does compound. Some examples for clarity: A 250 point "type A" deposit would earn 21 points the first month (11+7+3) and 22 the 2nd (11+7+4). A 400 point "type B" deposit would earn 31 points (11+7+7+6) the first month and 33 in the 2nd (11+7+7+8).

The savings account option pays slightly lower interest than the lump sum because I guarantee quick withdraw (as outlined above) upon request without loss of earned interest. I will honor requests for early withdraw of other deposits, but can make no promises as how quickly I can get you the points. Fulfilled requests for early withdraw from non-savings account plans will be paid 2% interest (to cover rake only) - additional interest will be forfeited.


To make a deposit, just please specify which option you want (annuity [specify payment plan], lump-sum, or savings ["A" or "B"] account) and transfer me the desired amount.

If you want some other option/want to meet some specific point goal (e.g. "I need 500 points by the end of the year"), drop me a PM and I'll see what I can do. Potential large depositors are encouraged to ask question here or over the PM system prevent misunderstandings and/or to negotiate custom rates.


And finally full disclosure info:
Current Loans Outstanding: 32 loans / 3238 points due, including interest
Assumed bad debt (not included in above figure): 156
Estimated weekly income: 700+
Current Non-Savings Deposits: 9 deposits / 786 points
Weekly Liability: 93
Savings Deposits (payable on demand): 3 deposits / 310 points
 Deposit amount repaid to date: 284


If you have any questions, don't hesitate to ask.