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| Browse | Dec. 09, 2024 |
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We are NOT a financial institution nor do we take any deposits. We are merely an auction facilitator. Clients must understand that they will be dealing with people or banks who will take their deposits, just like any ordinary cause of business, caution is required. You should always have a good contract if you are lending/depositing to non-financial institutions. You should be careful when dealing with individuals who offered unsustainable rates. If they are not in your state, then you should not deal with them. Do not deposit/lend more than $5000 as this is the probably the maximum amount you can claim in a small claims court. If you are lending to strangers, you should check their identity, do a pipl.com search. Give them a call and ask whatever documents you need to verify their status. If you lend money to someone living in your city, then the risk is even lower as you can check them out in person or have a skype video (record the video for goodness sake). This is an approximation only based on 360 days. Our calculation is an approximation based on simple interest. For example, if you provide $ 10 for $9000 (deposit) for 30 days, the percentage % Per Annum (%PA) is 10/9000 = 0.00111 for 30 days or 0.000037 per day, times 360 days = 1.33% PA. We merely annualised the interest amount to % PA so that it has some resemblance to what most people are comfortable with. The fact is that the amount of interest should be the amount you receive at the end of the deposit period and that is the amount billed to your banker. We used 360 days as this is a conservative %. There is no compound calculation here, what you ask is what you receive. If it is compounded then the % is higher but not all banks will do this and is up to you whether you want to reinvest the interest so we think is better to erred on the conservative side. Is an experimental means to empower depositors to find the best interest return for their deposits. I should not speculate what this can do eventually as I do not know. I hope it will turn into something interesting where users can customise and learn on their own how to manage their deposits (investments) although I am pretty sure this will come with a steep learning curve. In designing this website, I took into account the issue of usury and instead stated the bid returns as interest/profit (as opposed to %). I also provided an approximation of the % PA for those diehard without a calculator handy (note that I use 360). I also wanted users to know exactly the amount of return they will be getting so there is no surprises. I had a shock one time when I was told the profit that I will be getting is less than stated as % PA. In some Islamic instruments, there is no pro-rata when you withdraw early for a FD which I was unaware of. However, the pain was that it took the teller 2 hours to close/calculate my "profit" and I decided to close my account as well, never to bank with such banks. I am sure anyone who has worked hard for their money will respect their money and want those professionals on wall street to respect your money too. This system is design to be competitive which is often lacking in banking system when it comes to servicing the "customers". Sure, the bankers will compete with each other for their bonuses and even decimate the financial system without blinking an eye lid. In the past while I was a young banker myself, I have thought of changing the system from the inside but that proof to be impossible when the unwritten rules is to get away with as much as you can by any means possible. This is not to say the entire banking industry is like this, there are many hard-working bankers who put tonnes of hours in their work doing mundane things like checking your signature, checking your background etc to decide whether to give you a loan. But the elite of the system has different ideas and life is short as we say and talk is cheap while churning money is practical. I designed this to be as open as possible, allowing maximum flexibility to interact with your potential bankers noting that you will also be competing with other depositors chasing more interest/profit for their money. I believe it is fairly balance, requires minimal work, you post and wait like fishing. I hope you will enjoy this as much as I have in designing it. Chris Kwan |