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You might have realised we pay a lot of attention to what our users ask of us. This is why we have gathered all the questions that have been asked - so that we can provide our readers with useful explanations.

FixedRate has an investment maturity of 365 days, and has a guaranteed gross 2% interest at the end of this period. This means it allows you to deposit money, and retrieve it after one year with an added 2% interest. Moreover, we can now say with all certainty that - for Italy only - Oval will be acting as a withholding agent at the maturity date of this product.

We have just given you an overview of the most complex aspects, so don’t worry - from now on it’s just the easy bits! Our aim is to simplify your life by providing the simplest explanations possible to these points:

  • Investment maturity and minimum holding period: no, they are not the same
  • Gross and net interest - what is the difference?
  • How Oval becoming withholding agent for Italy is a huge win for investors

The importance of time frames when it comes to investments

Keeping investments on a medium or long-term basis is one of the main ways to plan your portfolio. FixedRate’s duration of 365 days makes it a medium-term product. Investing in this type of product means committing a sum of money to the investment, knowing that you won’t be able (or nearly) to touch it for one year, but that you will gain a fixed 2% interest. As you can read here, this fact is already a gain, considering the times. This is why we have set up an investment duration that enables you to train your steadfastness for a long enough period of time, while planning and diversifying your investments at the same time.

Nevertheless, we still want to give investors the chance to change their minds - which is why this product has a minimum holding period, like all Oval products. Once invested in it, you need to wait 60 days before disinvesting.

If you decide to disinvest before the maturity date, keep in mind you will have to pay a 1.95% commission on the sum originally invested, and you will lose all interests accrued until that moment.

The net cannot exist without the gross

Living in an organised system where services are provided means that there are some regulation costs. The same is true for investments. On one hand, you need to pay some entry costs so that the service can work properly; on the other hand, the world we live in has specific legislation which means we have to take into consideration income taxes, for example.

Considering all these factors is important to understand why the FixedRate interests, too, need to be calculated net of income taxes. In conclusion, the principle ‘To make a system work well, you need resources’ is always valid.

Oval as a withholding agent

This means, among other things, that you won’t have to worry about managing your taxes, because we will take care of that for you. A withholding agent is a legally authorised subject that replaces the individual taxpayer in fulfilling the tax obligations towards the tax collection bodies, that is, the State. For example, an employer that pays its employees’ taxes in their entirety acts as a withholding agent. In the same way, Oval will replace investors in the tax payment process. We have worked very hard so this could happen.

As we have told you, FixedRate is an accessible, simple and transparent product.

- It’s accessible because anyone can invest, starting from a £/€ 100 minimum investment.

- It’s simple
because all of our products can be accessed through our easy-to-use app, where you can always get all the information you need.

- It’s transparent because Oval’s mission is to help people learn how to invest according to their own priorities and needs. To do so, we make sure we explain all the technical details in the simplest way possible.

All that’s left to do now is to read through FixedRate’s features in light of the explanations we have provided, and decide if this is the right product for you.

Oval does not provide financial advice. For any questions we recommend consulting an expert. Terms and conditions in-app.

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