It's that time of year again. After a relatively slow start for Innovative Finance Individual Savings Accounts (IFISAs - see an earlier News article on this topic) the awareness and popularity of the IFISA could be set to soar.It's important to balance risk against the good returns (Money&Co. lenders have achieved over 8 per cent gross returns over nearly £15 million facilitated on the platform).P2P Finance News reports on the issues below.CHOOSING WHERE TO place your ISA allowance each year can be tough. A cash ISA provides a defined rate of interest but the best returns are typically below inflation.In contrast, investors can aim for higher returns by investing in the stock market with a stocks and shares ISA.But this brings stock market volatility and the risk of losing your money, alongside fees for the investment wrapper and for a financial adviser, if one is used.What if you could combine that fixed rate of interest with a little extra risk? Enter the Innovative Finance ISA (IFISA).The IFISA lets investors earn their peer-to-peer loan interest tax-free. Returns range from 3.54 per cent with Landbay or 4.5 per cent with Zopa to double figures with platforms such as LandlordInvest, Proplend and Ablrate.In contrast, the best rate on a cash ISA comes in at around two per cent."It may be tempting to open a basic cash savings ISA, but some savings goals are for the longer-term, so instead consumerREAD MORE
Hello. The new year is in, and we welcome 2019 with renewed emphasis on Money&Co.'s just-launched Portfolio Innovative Finance Individual Savings Account, which is managed by Bramdean Asset Management (an FCA-regulated fund management business).This service has already attracted significant volumes of business (in the final quarter of 2018) – and the prospects look excellent, as savers and investors wake up to the advantages of tis offering.Consider, if you will, the alternatives on offer – the figures below are from HMRC's published data for the tax year to April 2108.