A simple tiered approach to fees

The following applies only to investments in the GBP Notes product. EUR Notes have 0% Service Fees. All investments made in EUR notes before the end of 2019 will have no fees charged in the time until they mature.

Tiered Annual Service Fee

On the first £20,000 - 1%, amount between £20,000 and £50,000 - 0.75%, amount between £50,000 and £100,000 - 0.5%, amounts above £100,000 - 0.25%

Based only on all principal amounts of the Notes invested. Fees are collected on a pro rata basis when a borrower makes an interest payment (this is either on a quarterly, semiannual or annual basis).

Example calculation:

1) If you held £50,000 in principal amounts of Notes you would be charged 1% on the first £20,000 and 0.75% on the next £30,000 giving an effective annual fee rate of 0.85%

2) If you held £120,000 in principal amounts of Notes across all of your WiseAlpha accounts (regular, SIPP, ISA, Corporate) you would be charged 1% on the first £20,000, 0.75% on the next £30,000, 0.5% on the next £50,000 and 0.25% on the final £20,000 which would give an effective annual fee rate of 0.60%

Sale Fee

0.25% Sales Fee Payable only on the principal amount of the Notes that are sold prior to maturity.

Please note any amounts you invest in EUR Notes or other WiseAlpha products are not counted in the Service Fee Tiering calculation above.

Fees will automatically be deducted from your WiseAlpha account when coupon payments are made on each Note - there's no extra payment to be made.

Members wishing to sell their investments prior to their maturity dates can do so by creating a sell order on the Market page or relevant product page. Liquidity on our secondary market is dependent on there being an available and willing buyer at the market price. You will receive your cash in your account once another member has purchased the investments you are selling. To date everyone who has wanted to sell their investments has been able to do so. However, liquidity is not guaranteed.

Unlike the Notes product, there are no Service Fees on the Smart Interest product for either GBP or EUR investments.

You can cash-out or sell your bond for an Early Sales Fee of 2.5% on our secondary market but liquidity may not always be available. In addition the ultimate annual interest rate you earn will be reduced to reflect the amount of time you actually ended up investing for and the rate that was applicable at the time you invested (for example, if you invested for a five year term but withdrew after a year, our system works out what you would have got had you invested for a year at the time of purchase and this is what you receive).

To see what your final capital and interest returns would be in the event of confirming an early withdrawal you can click the cash-out button which will clearly layout the associated charges for withdrawing early before you confirm the cash-out.