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How much difference will compounding my interest make?

On a £5000 loan part @ 7.2%pa over 12 months, compounded monthly, you will earn an extra £12.12. This is an effective annualized rate of 7.44%*.

Here at Kuflink, we have created an algorithm that mimics the effect of compounding interest. The compound interest is based on a calculation that becomes payable upon a triggering event involving capital reduction. These cases include partial (pro-rata basis), full repayment or sale on the secondary market.

*Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed. Tax rules apply to IF ISAs and SIPPs and may be subject to change. Kuflink does not offer any financial or tax advice in relation to the investment opportunities that it promotes.