Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).
Read our full Risk WarningYour capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).
Cubefunder 2 Year 6% Bond | Not held in IFISA | Held in IFISA | |
---|---|---|---|
Higher rate tax payer | Basic rate tax payer | Basic rate tax payer | |
Investment amount | £10,000 | £10,000 | £10,000 |
Interest rate | 6% p.a. | 6% p.a. | 6% p.a. |
Tax rate payable on interest | 40% | 20% | N/A |
Gross interest earned | £600 | £600 | £600 |
Tax payable | £240 | £130 | £0 |
Net interest earned | £360 | £480 | £600 |
Total capital and interest received by the end of term | £10,720 | £10,960 | £11,200 |
Sources: Investors should note that payments of interest are made after deduction of income tax at the basic rate (currently 20%), unless the bond is held in an IFISA. You should note that your capital is at risk and returns are not guaranteed.