How is the Unity Mutual interest rate calculated?
Unlike other stocks & shares ISAs, where the amount you earn (or lose) fluctuates depending on how your investments perform, Unity Mutual guarantees your capital and gives a guaranteed interest rate for each tax year.
Any money you pay into the LISA will be invested in Unity Mutual’s portfolio of rental properties. In the future, the mutual is also planning to expand its investments to include Government bonds, corporate bonds and equities.
At the moment, the interest rate is based on the expected yield from its rental properties – but Unity Mutual told us that customers are 100% guaranteed to receive the advertised rate for that year, even if yields are lower or higher than expected.
The interest rate is calculated every March, and that rate is then applied for the next tax year, which runs from April to April.
If the rate is set to drop, you’ll be given 14 days’ notice in writing, as long as your balance is more than £100.