INVESTORS can earn more than five per cent by investing in the top-rated Innovative Finance ISAs (IFISAs), research claims.By spreading funds across platforms that 4th Way has given its highest PLUS rating, investors could earn 5.82 per cent returns, the peer-to-peer lending analysis firm said.
All of which is excellent. But we cannot let the piece pass without comment. See below: our own portfolio service offers a spread of loans, and a target return, for IFISA investors, of 7 per cent, free of tax.
7% Target IFISA ReturnThe Innovative Finance ISA (IFISA) is the newest type of ISA, which allows investors to access investments such as peer-to-peer (P2P) loans, with the tax benefits of an ISA wrapper. As with Cash ISAs and Stocks and Shares ISAs, no income tax is payable on the yield from your investment..Your money will be invested in loans on the Money&Co. P2P lending platform, typically with a fixed return of 7% per annum after fees, which you will receive completely tax-free.
A Process Guide To Innovative Finance ISA InvestmentMoney&Co. lenders have achieved an average return of more than 8 per cent gross (before we deduct our one per cent fee). That figure is the result of almost £15 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:
Risk: Security, Access, YieldDo 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.