Silver Surfers Next Stop On Digital Currency Express
Coming soon, to a kitchen supper near you… The news reports of the unstoppable advance of digital currencies continue. Regular readers of this News site will not be surprised by the latest, as conveyed by our friends at Altfi:
The demise of the bricks and mortar bank branch looks closer than ever, as Revolut reports a 215 per cent uptick in over 55-year-olds users, signalling a new age of ‘silver swipers’.
Revolut’s data show that the number of transactions by UK users aged 55-74 has quadrupled, while the amount spent has increased by 470 per cent since 2020.
With 85 per cent of the UK population now owning a smartphone, according to Ofcom, older customers are enjoying the accessibility of financial apps and opting to use fintech services to purchase items and services online and in store.
As travel gradually returns too, retirees are opting to use Revolut to avoid hidden fees abroad. Revolut reports that the 55-64 UK age group has seen a tenfold increase in the amount spent in foreign countries over the past two years, and the 64-75 age group isn’t far behind, registering an 840 per cent increase. Revolut says volumes are just increasing as countries reopen borders.
After decades of relying on traditional banks, married retirees Paul (56) and Lynn (61), opted to use Revolut’s services on a road trip around Europe.
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 £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.
- 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.