Why PeerPower change the method of calculating investor service fees

With the new calculation method, your fees will be the same or lower, but it will be more transparent, and allow for more flexibility.  

From 1 December 2022, PeerPower investor service fees will be prorated based on the number of days your principal is deployed at 1.25% per year. The new fee calculation method will apply to all ongoing and future bonds.

Benefits of new investor service fee

Lower fees overall

For a 100k investment, here is how your fees look like with the current and updated calculation method

Example

• Investment amount (THB): 100,000.-
• Interest rate (p.a.): 10%
• Period (months): 12 months
• Repayment Type: Amortization

More transparent calculation

The new fees will be prorated based on the number of days your principal is deployed, just like how we calculate interest payments. This will make it easier for investors to predict and cross-check your fees and interests. 

Investor service fee = outstanding balance x (investor fee rate/365) x number of days in a specific period

Get funds back fast and re-deploy them

When Issuers are able to make early repayment, investor fees prorated daily ensures you’re charged service fees only for the days in which your funds are deployed. You then get funds back early for re-investment in other bonds. This also means more flexibility to deploy your funds in shorter duration bonds (such as 14-day or 45-day bonds).   

Example 

• Investment amount (THB): 100,000.-
• Interest rate (p.a.): 10%
• Period (days): 30
• Repayment Type: One-time repayment at end of period