Loanpad has increased the rates being offered to investors on its premium account, with another interest rate rise planned for August.
From 4 July 2022, Loanpad’s premium account holders can earn 4.1 per cent, up from four per cent previously.
From 1 August 2022, the premium rate will rise again to 4.2 per cent.
The premium account is ISA eligible, but requires 60 days notice before any withdrawals are made.
There has been no change to Loanpad’s easy-access classic account rate, which remains at three per cent.
Louis Schwartz, chief executive of Loanpad, told Peer2Peer Finance News that the rate rise was inspired by the base rate increases which have been announced so far this year.
“As base rate has risen several times already this year to counter high inflation, we feel that it is correct to be raising rates for investors and borrowers,” Schwartz said.
“We are monitoring interest rate projections and market expectations with extra focus and our investors will be updated as soon as we have more news to share.”
Earlier this year, Loanpad increased its maximum investment limit for customers with premium accounts from £250,000 to £1m.