Saving for your future – infographic.
Title: SAVING FOR YOUR FUTURE?
HERE’S HOW TO BOOST YOUR INCOME
Text: With interest rates at record lows, it’s important that you make the most out of your money. If you’re saving for the future, knowing how to put your savings to good use can be tricky – here’s Crowd for Angels’ guide to investing your savings.
Subtitle: REVIEW YOUR CURRENT INVESTMENTS
Text: If your current investments are popular products such as bank deposits or in a Cash ISA, you’re probably been earning derisory returns over the past few years. According to data from Moneyfacts, the average easy access Cash ISA rate was just 0.64% in February this year.
Not only are savers having to contend with falling interest rates, the CPI measure of inflation moved to 2.3% in March this year. That means Cash ISA savers are now receiving a negative real return on their money. So what are the alternatives?
Subtitle: INVESTING IN CROWD BONDS
Text: Crowd bonds are an exciting new way to invest. Crowd bond are debt securities which allow you to lend to UK companies through crowdfunding. These are secured, fixed-term loans with interest levels ranging from 6 to 12% per annum.
They are secured against the borrowing company’s assets and provide a regular flow of income, which can help in your financial planning.
Subtitle: TAKE ADVANTAGE OF TAX RELIEF
Text: Because you can put crowd bonds in the new Innovative Finance ISA (IF-ISA) “wrapper”, you can also look forward to tax-free* return on the interest you earn. For the current tax year, ending 5th April 2018, your personal allowance is £20,000.
*Availability of any tax relief is dependent on the individual circumstances and is subject to change.
Subtitle: A LITTLE EXTRA RISK TO BOOST YOUR INCOME
Test: Investors who are willing to take on a little more risk could boost their returns, even by investing just a small proportion of their annual ISA allowance into crowd bonds. For example, by allocating 75% of your allowance to the Cash ISA at 0.64% and the other 25% to a 9% p.a crowd bond, your average total return will be an inflation busting 2.73%.
Text: Crowd bonds often pay interest monthly. Remember to reinvest your interest to take advantage of the compounding effect. For example, if your are able to immediately reinvest the interest payments on a 12% crowd bond at the same rate the annual equivalent return would be 12.7%. While it might not always be possible to do this due to the availability of bonds, over multiple years compounded interest can lead to a big increase in your savings.
Text: JOIN CROWD FOR ANGELS TODAY ABD SEE WHAT OPPORTTUNITIES AWAIT YOU.
Before you start investing, it could be worth paying off any outstanding debts you owe. This will allow you to move forward and reap the full benefits of your investments.
Crowd for Angels is an online crowdfunding platform that lets you invest in cutting-edge start-ups and strong small businesses. Join our community of investors today to start drawing high returns and begin saving for your future.
Your capital at risk if you invest in a business via Crowd for Angels and is not covered by the Financial Services Compensation Scheme. Crowd for Angels (UK) Ltd is authorised and regulated by the Financial Conduct Authority. (FRN: 176508)
*Tax Treatment is subject to change and dependent on individual circumstances