Have you finally decided to start your savings journey? Then the starting point is surely your Oval digital savings account, i.e. to put away those pennies when and where you can. Oval allows you to improve you financial health, while you think about living in the present.
You should consider that the money you put in the bank is static. It doesn’t increase in value year-on-year. On the contrary, it actually decreases in value. According to the Credit Suisse Global Investment Returns Yearbook, due to inflation, the value of the money you have saved in the bank depreciates year-on-year.
That's why FixedRate is back! You can choose to invest your savings for one year with a fixed interest rate of 2%! The pre-investment campaign is active from February 3rd until the 1st of March 2020.
What is it and how does it work?
Our Oval users asked it back, so the investment product through our investment section that allows you to grow your savings by 2% annually without you needing to do a thing, is back! Just sit back and relax. We’ll do the rest.
In order to invest in FixedRate you must know that the pre-investment campaign comes to an end on the 1st of March 2020. In this period, if you are interested in the new product, you can invest using your digital savings account. Then, after this term, your money will be invested and tied up for one year. At the end of this period, it will be dis-invested and returned directly to your digital savings account with a guaranteed increase of 2%.
Is my money protected?
If you see this logo near the investment products offered through Oval, like the FixedRate, it means it's covered by the FSCS (Financial Service Compensation Scheme):
FSCS is the UK’s statutory deposit insurance and investors compensation scheme for customers of authorised financial services firms. You may be eligible to claim compensation if the investment firm fails and has been authorised by the Prudential Regulatory Authority (PRA) or Financial Conduct Authority (FCA). FCSC covers your investments up to £85,000. More information on the FSCS can be found here.
Who is this product for?
This product is for all our Ovalers, and those of you that haven't started using it yet. We envisioned this product to give everyone the chance to grow their savings over time, even with small sums (the position can be opened already with an amount of £100).
The fast facts:
- Pre-investment period: 3 February-1 March 2020
- Minimum opening contribution: £100
- Maturity time: 365 days
- Maturity date: March 2nd 2021
- Minimum holding period (ie. how long you must invest your money before you can withdraw it): 60 days
- Additional costs: zero. There are no management fees and no entry or hidden fees
- Early redemption cost: 1.95% with up to 15 days to return your capital
In order to invest in this product remember that, unlike the other products on the investment section, you have limited time until March 1st to invest in it!
If you already have an investor profile, and can already access the investment section, then you can simply invest your desired amount.
You still need to complete your profile? To make your account safer and give you access to all features in the app, complete the identity verification process. All you have to do is click on the card to "create your portfolio" and follow the instructions you see. You will have to complete 2 very easy steps:
1. A brief questionnaire about your investing expertise and goal to assess your risk level.
2. Proof of address - either a bill or a bank statement (remember to upload a screenshot or a photo of a printed document). It is essential that the address coincides with the one you have previously given during registration.
Then, all you need to do is wait (up to 48 hrs) for the activation of your profile and you're ready to invest!
If you haven't downloaded Oval yet, just click here!
Oval does not provide advice. Your capital is at risk. The value of your investment can go up as well as down and you could get back less than you invested.