What is Reinvest Small Balances in Loans?
By selecting this option, Investable Cash in your account (in increments of $100 or more) is eligible to be invested in new loans through Automated Investing (you must have Automated Investing turned “on” to participate). In other words, even if you do not have enough Investable Cash to reach the standard $1,000 minimum to invest in a new loan, this feature allows you to automatically reinvest any amount of at least $100 rather than have it sit in your account. This helps you to take advantage of compounding returns (i.e., by earning interest on interest deposited in your account) while further diversifying your portfolio.
What is Sweep Small Balances to Pocket?
By selecting this Automated Investing option, any Investable Cash (in increments of $100 or more) remaining in your account in a given week will be invested into Pocket at the end of day Sunday. This allows you to take advantage of compounding returns (i.e. by earning interest on interest deposited to your account) while further diversifying your portfolio.
How is Sweep Small Balances to Pocket different form Reinvest Small Balances to Loans?
Pocket is an alternative option to loan investments. Learn more about Pocket here. If you’d like to redeploy small balances in your account on an automatic basis, you can choose whether you’d like Automated Investing to place your Investable Cash into Loans or into Pocket.