Two A+ Loans With 7% Yield On Site As ISA Investment Deadline Looms

The end of the tax year is approaching and you must use your ISA allowance by midnight on 5 April or you will lose it.  The ISA allowance for 2020/21 is £20,000 if you are a UK taxpayer. With the bank holidays falling this Easter week end, the time to act is really by close of play tomorrow.

We currently have two grade A+ loan offers just landed on site. Both have yields of  seven per cent. At the time of writing, Bonnington Law, with a 12-month term, is 97 per cent funded. The Mar-Key Group is 39 per cent funded and has a term of two years.

The Money&Co. Innovative Finance ISA allows you to receive interest on your loans completely tax free.  Since Money&Co. started lending on 29 April 2014, we have achieved an annualised return (net of fees and bad debts) of 7.34% per annum.  According to our calculations: over the same period, the FTSE 100 has returned nothing and the FTSE All-Share has returned just 5% over the entire period against a cumulative return from Money&Co. of 64%.

If you do not have a Money&Co. ISA and you would like to open one, please click on the green tab at the side of the home page at and it will take five minutes to open one.  You will need your NI number. You don’t have to commit to a loan to qualify for this tax year’s ISA allowance – just transfer the money before the end of the tax year.

Historical Performance And IFISA Process Guide

  • Money&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 over £26 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.

  • Money&Co. has been lending for over 5 years and has only had two bad debts so far, representing a bad debt rate of 0.03 per cent per annum.

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:

  • Step 1: Register as a lender. Go to the login page, and go through the process that the law requires us to effect. This means we have to do basic checks on you to comply with money-laundering and other security requirements.
  • Step 2: Put money into your account. This is best done by electronic transfer. We can also process paper cheques drawn in favour of Denmark Square Limited, the parent company of Money&Co.
  • Step 3: Buy loans in the loan market. Once you’ve put cash in your account it will sit there – and it won’t earn interest until you’ve bought a piece of a loan. It’s this final step that requires lenders and IFISA investors to be pro-active. Just choose some loans – all loans on the Money&Co. site can be held in an IFISA – and your money will start earning tax-free interest.

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.


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Disclaimer: Money&Co.™ is the trading name of Denmark Square Limited, Company Number 08561817, registered in England & Wales, authorised and regulated by the Financial Conduct Authority (FCA). The company is identified on the Financial Services Register under Reference Number 727325. The registered office is 58 Glentham Road, Barnes, London, SW13 9JJ where the register of Directors may be inspected. Denmark Square Limited (ISA manager reference number Z1932) manages the Money&Co. Innovative Finance ISA.