Fixed
rate bond: the investment for regular incomes.
A
bond can be issued by the Staten a public firm or a private
society. In every case, the organism issuing the bond promises
to pay a constant income during the entire length of the loan.
At the end of this loan, the debt must be refunded completely.
The fund of a fixed rate bond is not guaranteed.
But if some private societies can generate a risk, it is not
the same for the borrowers launched by the State, who are the
most reliable for they are adding the fact that they benefit
from better rating, they are used as references for interest
rates.
The money invested in a bond at a fixed rate
is always available. To get it back, all you have to do is to
sell your shares at any moment.
The payment rate of fixed rate bonds is about
4%. In case of surplus value, the difference between the refund
price and the purchasing price is called the refund bonus.
Bonds incomes and refund bonus are taxable and
have to be declared on the income tax return. They are also
subjected to social direct charges of 11%. You will also be
able to choose a deduction at source of 16%, to which are added
the social direct charges o 11%. But in the case of deduction
at source, the bank will keep 27% of the sum before transferring
it to your account.
Fixed rate bonds can be sold before the due
date of the loan. In that case, there is levy on the capital
gain only if the total sum of the stocks sold is over 15 000
euro for one year. Note that it only concerns the incomes of
the share and not the refunds. Apart from this sum the capital
gain is taxable at the package rate of 16%, to which the 11%
of social direct charges are added.
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