This is the second post in a series on my PeerStreet investment account
Progress to First Investment
The first post in this series shared my experience setting up an individual investor account at PeerStreet. In this post I will show you what’s involved with funding the account. It took several days to get my account funded, but not because PeerStreet is slow. My local bank was the slow link in the chain, which I’ll explain below.
Two Options for Funding
Investors can fund their account with a wire or bank transfer. A wire transfer is faster because it doesn’t require account verification but usually costs money to do. However PeerStreet will reimburse you up to $50 in fees for transfers over $25k. Since my plan is to start with only $10k I chose to use the bank transfer option which takes a few days to set up.
Account Verification and Security
Linking my bank account to a third party always makes me a little nervous. PeerStreet’s account verification process made me feel comfortable that they have the appropriate security in place. After entering my bank account and routing numbers into their system I was informed that I would see three transactions in my bank account. These deposit amounts would be used by me to validate my account. PeerStreet also sent me email reminders daily until I validated my account.
PeerStreet put two small deposits into my account and then withdrew the deposits in a single transaction. The reason it took a few days for me to be able to fund my account is that the transactions did not show up in my bank account immediately. The two deposits totaled less than one dollar. I was instructed to log into my PeerStreet account and enter the deposit amounts in their site to verify the account.
After verifying my bank account with PeerStreet transferring funds is now instant. It is almost spooky how fast large amounts of money can be moved these days. Now I just have to select “bank transfer”, input the amount I want to move, and click “initiate deposit”.
Dashboard and Progress Toward First Investment
Now that my account has money it’s time to decide which loans to invest in. PeerStreet presented me with a list of investments (available, funded, and paid off) to review. There is also a detailed dashboard to manage my future investments.
In the next post I will get started investing in loans.