Innovative Finance ISA's #Don'tLoseInterestNow

In the run up to ISA season there are more than just 3 types of ISA to choose from, the Cash ISA, Stock and Shares ISA, Lifetime ISA and now the INNOVATIVE FINANCE ISA (IFISA)

 If you don’t know about it, then here is a very quick introduction.

1.  Innovative Finance ISA was introduced on the 6th April 2016
2. The Innovative Finance ISA allows investors to earn tax free interest and capital gains on money lent through FCA regulated Peer to Peer (P2P) platforms
3. Peer to Peer platforms allow individuals to lend money directly to borrowers in return for regular monthly interest. Loans can be consumer, SME or property based.
4. P2P lending is a fixed income product and Capital lent via a P2P platform is at Risk
5. In terms of risk, it sits somewhere between Cash ISA’s (no risk but minimal returns) and Stocks and Shares ISA (growth opportunity but exposed to stock market volatility)
6. In the UK, the P2P industry is now just over 10 years old and to date has facilitated nearly ￡15 billion of loans
7. In order to offer an Innovative Finance ISA, a P2P platform must be fully authorised and regulated by the FCA and be approved by HMRC
8. There are approx. 29 Innovative Finance ISA providers, a list is available HERE

For the ￡270 billion of cash locked up in Cash ISA's, last year was the worst on record for returns. The average return of 0.8% p.a.* did not even get close to covering inflation. Perhaps 2018 is the year to become more innovative with your ISA.

 Investors you have worked hard to save money in your ISA #DontLoseInterestNow

* Bank of England Dec 2017

Brian Bartaby is the Founder & CEO of Proplend , a P2P Platform specialising in sub ￡5m commercial property debt. Matching borrowers demand for loans with investors demand for income. The views above are my own and not a representation of Proplend or any other platform. Investors' capital is at risk.