Tiered annual Service Fee (GBP Notes)
The following applies only to investments in the GBP Notes product. EUR Notes have 0% Service Fees. All Euro investments made before the end of 2019 will have no fees charged in the time until they mature.
WiseAlpha charges members a tiered annual Service Fee based on all principal amounts of Notes invested in. 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). The Service Fee is rounded to the nearest whole penny in your account.
1) If you held £50,000 in principal amounts of Notes you would be charged 1% on the first £20,000 and 0.75% om 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%.
In the event that a borrower suspends its interest payments or misses a capital repayment WiseAlpha does not charge the Service Fee until payments are resumed.
Smart Interest Fees
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 Sale 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 cashout.