Prosper help - Investor FAQs

You can transfer to and from your Prosper investment account in the following ways.

 

ACH Transfers

Deposits

You can transfer funds in and out of your general investment account with an ACH transfer when signed into your online Prosper Account.

• To protect against fraud, the initial transfer to your Prosper account can take up to 5 days to become available before you can invest. After you establish an investing account history, your account may qualify for instant transfers, which will allow you to invest the transferred funds immediately.

Withdrawals

Each month, the first withdrawal from your general investment account can be any amount you’d like, but each additional withdrawal requires a minimum of $25. There are no fees to transfer funds in or out of your Prosper account.

• Depending on your bank, it can take 1-5 business days for a withdrawal from your Prosper account to arrive in your bank account.
   

Wire Transfers

Deposits Only

You can transfer funds into your Prosper investment account with a wire transfer, but we do not offer wire transfers for withdrawals.

• To deposit funds with a wire transfer, contact our Investor Services Team.
   

Individual Retirement Accounts

To transfer funds for your Prosper IRA, please contact your custodian directly for assistance. The contact information for Prosper’s preferred custodians, AltoIRA and Inspira, are provided below: 

AltoIRA

• Telephone at (877) 673-1557. or online at: https://www.altoira.com/

Inspira

• Telephone at (800) 258-7878. or online at: https://inspirafinancial.com/
   

Can I deposit and withdraw funds by check?

No, we do not accept or issue checks when transferring investment funds.

For individual general investment accounts, the minimum amount you can invest is $25.

For IRAs managed by our designated custodians, AltoIRA and Inspira, the minimum investment amount required to qualify for Prosper to reimburse up to $50 of the custodian fees is, custodian fee reimbursement is $5,000 in year 1 and $10,000 in all subsequent years. Please note that these minimums refer to the amount invested in Prosper Notes -- cash balances will not be counted.

We do not make any recommendations; however, we have found that investors generate a more stable return when they diversify their investment over many different Notes, with each Note corresponding to the borrower loan of a different borrower. Prosper’s Notes are offered by Prospectus which is an official document that describes all the key information for the Notes we offer. You can find our Prospectus on our website at the bottom of any page at www.prosper.com.

Yes, you can schedule recurring transfers on a weekly or monthly basis, or you can schedule a single transfer for a specific day of the month.

If you are experiencing this issue, it means you are signed in to your existing Prosper account. Please sign out, and then complete the application again.

Though you cannot convert a taxable general investment account into an IRA account, you can open a new IRA using tax-deferred funding. The taxable funds in a general investment account cannot be directly moved into or converted into a tax-deferred IRA account without liquidating the general investment account.

To get the funds from your general investment account into an IRA account, you would first need to liquidate the funds in your taxable general investment account, then open an IRA account with one of our approved custodians and fund the account.

To set up a new IRA account, first sign out of your existing account and create a new Prosper investment account, making sure to select “Prosper IRA” as the account type. You will need to use a different email address than the one linked to your general investment account, since each Prosper account needs a unique email address.

No, each Prosper account needs a unique email address. If you already have a Prosper taxable investing account, you will need to use a different email address for the IRA account.

If you have an established account history with Prosper, you may qualify for instant transfers. ACH transfers can take up to 5 business days to become available in your account, which can delay your ability to invest until the funds arrive. Alternatively, qualifying for instant transfers gives you immediate access to the funds you transfer into your account.

Your account automatically becomes eligible for an instant transfer when it meets the following qualifying criteria:

• Your transfer amount is not less than $25 and no more than $1,000.
• The total amount that you’ve transferred instantly from your bank account to Prosper over the last seven days does not exceed $1,000. If you have instantly transferred any amount to Prosper in the last seven days, the amount eligible for instant transfer today will be $1,000 minus the amount previously transferred.
• You have at least one active Note in your portfolio.
• Your Prosper account doesn’t have a negative cash balance.
• You’re scheduling the transfer for “today.” Instant transfers cannot be scheduled for a future date, these transfers can only be scheduled for the same day.
• You’re organizing the instant transfer online or over the phone. Instant transfers cannot be scheduled through the Prosper Invest app

Learn more about funds transfers.

Yes! You can invest through Prosper using an Individual Retirement Account. Whether you're contributing to an existing traditional IRA, Roth IRA, SIMPLE or SEP-IRA, planning to open a new IRA or rollover your account from an existing custodian, we will work with you to open your Prosper IRA.

To set up an IRA, please select the "Individual Retirement Account (IRA)" account type when signing up.

Annual Service Fee

Like our General Investment Accounts, we charge a 1% annual service fee on IRA’s.

Prosper will reimburse up to $50 of Prosper's preferred custodian* fees if, at the end of each year, your Prosper account contains the following account balance (which consists of both uninvested cash and Notes):

• At end of Year 1 - $5,000
• At end of each subsequent year - $10,000

Prosper will not reimburse any third party custodian fees except those for Prosper's preferred custodians.

Prosper reserves the right to change the fee reimbursement policies or terminate the fee reimbursement program at any time. Prosper will notify you via e-mail of any changes in these reimbursement policies prior to any changes.

*Prosper's preferred custodians are AltoIRA and Inspira.

A minimum of $25 is generally required for outbound fund transfers. However, once per month, you may transfer an amount less than $25.

It can take up to 5 business days for a funds transfer from your bank account to arrive in your Prosper account. However, your account may be eligible for instant transfers, which affects how quickly you can utilize transferred funds for investing.

We require investors to verify ownership of their bank account before they can invest on our platform. This is a security measure to prevent fraud and other malicious financial activity.

We have two options for you to verify your bank account:

Instant bank verification
When you reach the bank verification stage of setting up your investor account with Prosper, you can instantly verify your bank account. Simply enter your online bank account login information.

Challenge deposit
Prosper can make two small deposits and one withdrawal from your bank account (both less than $1.00). These transfers should appear in your bank account transaction history within 2-4 business days and you will receive an email from Prosper confirming that the transfers have been initiated. After the transfers have gone through, you’ll need to find the exact amounts of the transfers. You can accomplish this by checking your bank account information at your bank’s website or calling your bank. Finally, you will need to enter these amounts on Prosper’s website to verify your bank account.

Start by first creating a new Prosper account. Select Invest > Prosper IRA and complete the application. You must use a unique email address and cannot use the same email address as any other email addresses you use with an existing Prosper account. If you have an existing account with Prosper, make sure you are signed out prior to creating your new IRA account.

Investing your IRA funds on Prosper can help you keep more of what you earn. Since taxes are not charged on the annual earned interest for your Prosper IRA account, your account can compound at a larger rate.

Before you sign up, we recommend consulting with your tax advisor to determine whether investing through a Prosper IRA is right for you.

Prosper will reimburse up to $50 of Prosper's preferred custodian* fees if, at the end of each year, your Prosper account contains the following account balance (which consists of both uninvested cash and Notes):

• At end of Year 1 - $5,000
• At end of each subsequent year - $10,000

Prosper will not reimburse any third party custodian fees except those for Prosper's preferred custodians.

Prosper reserves the right to change the fee reimbursement policies or terminate the fee reimbursement program at any time. Prosper will notify you via e-mail of any changes in these reimbursement policies prior to any changes.

*Prosper's preferred custodians are AltoIRA and Inspira.

No, a taxable account cannot be converted to a retirement account. You may withdraw your available cash in order to fund your new Prosper IRA account.

AltoIRA and Inspira are the custodians for Prosper IRA accounts. They open and direct your retirement account funds. They can be reached by telephone or online, see below:

AltoIRA

• Telephone at (877) 673-1557. or online at: https://www.altoira.com/

Inspira

• Telephone at (800) 258-7878. or online at: https://inspirafinancial.com/

You can transfer funds in and out of your Prosper IRA by contacting your custodian directly for assistance. The contact information for Prosper’s preferred custodians, AltoIRA and Inspira, are provided below:

AltoIRA

• Telephone at (877) 673-1557. or online at: https://www.altoira.com/

Inspira

• Telephone at (800) 258-7878. or online at: https://inspirafinancial.com/
   

Prosper will reimburse up to $50 of Prosper's preferred custodian* fees if, at the end of each year, your Prosper account contains the following account balance (which consists of both uninvested cash and Notes):

• At end of Year 1 - $5,000
• At end of each subsequent year - $10,000

Prosper will not reimburse any third party custodian fees except those for Prosper's preferred custodians.

Prosper reserves the right to change the fee reimbursement policies or terminate the fee reimbursement program at any time. Prosper will notify you via e-mail of any changes in these reimbursement policies prior to any changes.

*Prosper's preferred custodians are AltoIRA and Inspira.

Yes! You can fund your investment account with a wire transfer. To complete a wire transfer, please contact our Investor Services Team.

No, Prosper does not accept checks for investment funds at this time.

You can only cancel a funds transfer which has not yet been processed. If a transfer is marked as “Scheduled,” you can still cancel the transfer.

Select History from your Prosper account menu. Click on Bank Account Transfers, and then click Cancel next to the transfer that you want to cancel. Change transfers now.

Navigate to My Account and click on Notes. Click on the Note ID to view individual Note details, including the payment history. Monthly payments are due each month on the same day of the month as the origination date.

Borrower payments are requested from the borrower’s bank account on the day they are due, and because Prosper electronically transfers money through a secure network called the Automated Clearing House (ACH) system, the entire process takes five business days. On the Note detail page for the borrower’s loan, you will see the payment status as Processing during these 5 days. Once the payment has cleared, the payment status will change to Paid.

We may alter the terms or make principal reductions on some borrower loans, which may include cases where a reduction in the initial interest rate is required by law. Where a borrower obtains a loan while not on active military duty and later enters active military duty, the Servicemembers’ Civil Relief Act (SCRA) permits that borrower to request a reduction in their interest rate to 6% while that borrower serves active military duty.

Borrowers have the option to pay all or part of the outstanding principal balance of a borrower loan in advance of the due date at any time. There is no penalty to borrowers for doing this. Partial prepayments will not change the monthly payment amount, but may shorten the loan term, resulting in the investor receiving less interest overall.

You can find a full breakdown of payments in the Payment History of your Notes section, located in your online account. Generally, when a borrower makes a payment toward their loan, we apply it to their remaining balance in the following order:

Borrower fees

We first subtract any fees accrued by the borrower before applying the payment toward interest or principal. Those fees may include:

• non-sufficient funds (nsf) fee: Failed payments accrue an NSF fee. NSF fees are paid to Prosper.
• check payment fee: Check payments accrue a processing fee. Check payment fees are paid to Prosper.
• late fees: Payments more than 15 days late accrue a late fee. Late fees are paid to investor(s).

Interest

Next, we apply the payment toward any unpaid interest on the account. Interest is paid to the investor(s) and is included in the total received amount in your Note Details.

Principal

Lastly, after fees and interest have been paid, we apply any of remaining payment amount to the outstanding principal balance. Payments applied to a principal balance are paid to the investor(s) and are included in the Total Received amount in your Note Details.

For loans originated through our marketplace by WebBank between July 13, 2009 and December 31, 2020, borrowers identified their intended use of loan proceeds as follows:

• debt consolidation (approximately 4%)
• home improvement (approximately 6.9%)
• business use, such as financing a home-based or small business (approximately 1.3%)
• financing of medical/dental procedures (approximately 4.0%)
• other (approximately 19.5%)

Please refer to our Prospectus for the most up-to-date information on borrowers' stated loan purposes.

Prosper, in its capacity as the servicer of the borrower’s loan, has the authority to waive or modify the terms of the loan without the consent of investors, including but not limited to changing the date the loan becomes due, reducing a borrower’s monthly payment, or extending or otherwise altering the repayment schedule of the loan.

Prosper has two primary sources of revenues: origination fees and servicing fees.

Origination Fees

We charge Origination Fees for facilitating the origination of loans by WebBank. Origination fees range from 1-9.99% of each loan amount. This fee comes out of the borrower’s loan at the time of origination.

Servicing Fees

We subtract a loan servicing fee from each loan payment we receive from borrowers. Our servicing fee is 1% per annum of the outstanding loan principal balance, withdrawn after a borrower makes a payment. Learn more about investor fees.

If our servicing fee were to increase or decrease, the new amount will only apply to loans that originated after the date of the fee’s change.

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