We start the week with a snippet of news from over the Irish Sea. Ireland is probably behind the UK in the adoption of payment apps, but the gap has narrowed. Our friends at Finextra report.
“A payments app developed by Ireland’s high street banks to compete with the likes of Revolut has been given the all-clear by the Competition & Consumer Protection Commission (CCPC).
The money-transfer app, called Yippay, was developed by a joint venture, Synch Payments, set up by AIB, Bank of Ireland, KBC Ireland and Permanent TSB.
Having pumped several million euros into the project, the partners saw their original submission to the CCPC rejected in January 2021 for a lack of detail.
The commission then launched a full investigation over concerns that the JV could be a means of preventing potential new competitors from entering the market and that it could stifle mobile payments innovation.”
Loan Offer Latest
A loan offer from Harris & Co., a borrower that operates in the litigation claim sector, is available on site. The loan is risk-rated A by our credit committee. It has a gross yield of eight per cent, for a fixed term of 12 months. The loan offer is currently 14 per cent subscribed, and will close when filled.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.