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How much interest you could earn on your loan investment depends upon how much you invest, whether you use our IFISA wrapper, your Personal Savings Allowance, and your tax rate. See the impact all of these investment options on the amount of interest you could receive from a loan.

Loan Value £20,000 Interest before fee and tax Fee for IFISA tax wrapper Interest after Fee and Tax See the column for your tax rate
20% Basic Rate 40% Higher Rate 45% Additional Rate
Interest Rate 6.5% Outside IFISA wrapper Interest on loan p.a. £1,300 N/A £1,040 £780 £715
If using Personal Savings Allowance* £1,240 £980 N/A
Inside IFISA wrapper** Interest on loan p.a. £1,300 -£240 £1,060 £1,060 £1,060
Loan Value £100,000 Interest before fee and tax Fee for IFISA tax wrapper Interest after Fee and Tax See the column for your tax rate
20% Basic Rate 40% Higher Rate 45% Additional Rate
Interest Rate 6.5% Outside IFISA wrapper Interest on loan p.a. £6,500 N/A £5,200 £3,900 £3,575
If using Personal Savings Allowance* £5,400 £4,100 N/A
Inside IFISA wrapper** Interest on loan p.a. £6,500 -£1,200 £5,300 £5,300 £5,300
The above table uses figures from the HMRC website but you should note that tax rates and the tax rules are subject to change. *Personal Savings Allowance for the tax year 2018/19 is £1,000 for Basic Rate taxpayers and £500 for higher rate taxpayers. **This assumes you use your entire 2018/19 ISA allowance of £20,000 on the FOLK2FOLK IFISA