The Search For Income: Great Savings Robbery Revisited
As interest rates remain stubbornly in the Doldrums, the search for income becomes more of an imperative.
Money&Co.’s CEO, Nicola Horlick, looks at this imperative from the perspective of the pension saver in today’s blog.
And we thought we’d revisit our news coverage of what we have consistently described as the Great Savings Robbery. Here’s our take from last year (sadly, the expected take-up has lagged because the relevant regulatory permissions have bee slow in coming)…
“AOL Money, the finance reporting arm of AOL, offers interesting – but not surprising – market information from a survey that reveals a significant potential take-up for the new Innovative Finance ISA in 2016.
“Nearly one in four cash Isa savers would consider investing their money with peer-to-peer (P2P) lenders when a new savings product launches next year, research suggests.”
A survey, commissioned by fellow P2P lender RateSetter, questioned 978 savers with a cash Isa, and found that 60 per cent are not satisfied with the current rate they are getting.
“Around 24% of savers surveyed said they would be interested in opening a new ‘innovative finance’ Isa,” continues the article.
“Set to launch in April, innovative finance Isas will be able to hold P2P loans, which often pay significantly higher returns than cash accounts. P2P lenders act as middlemen, matching people who have some cash to invest with those who want to borrow money.”
At Money&Co. we have been banging on – there’s really no other epithet – about the awful rates on offer from cash ISAs for pretty much as long as this site has been publishing. Here’s a take on what we see as The Great Savings Robbery from last year, and here’s another from this autumn.
Find out more about crowdfunding and lending via Money&Co. (average gross yield for lenders is over 9.1 per cent) by visiting our Knowledge Hub.