The flagship feature of Monzo Plus, priced at £5/month with a 3-month minimum term, is deep open banking integration with other bank and credit card accounts like HSBC, Barclays and Lloyds, letting customers view and move money between these accounts.
Another feature being wrapped into Plus are Monzo’s virtual cards for customers to spend online without sharing their actual bank card details, monthly credit scores from the bank’s integration with TransUnion, and 1 per cent interest on all balances up to £2,000.
“With this version of Monzo Plus we went back to basics, and re-examined how we built things. We thought really hard about why people love Monzo and listened to our customers and our community,” said Monzo’s chief product officer Mike Hudack.
Historical Performance And IFISA Process Guide
That figure is the result of over £21 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 2019/20 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.