FOLK2FOLK SEES GROWTH IN UPTAKE OF ITS INNOVATIVE FINANCE ISA

Sponsored by

Share

The Business Magazine article image for: FOLK2FOLK SEES GROWTH IN UPTAKE OF ITS INNOVATIVE FINANCE ISA

Marketplace lender and investment platform, FOLK2FOLK, reports strong interest in its Innovative Finance ISA (IFISA) over 2020 and into 2021.

An IFISA allows you to invest via a Marketplace lending platform within an ISA tax-wrapper so the interest you earn is tax-free.

FOLK2FOLK who have their 3 Counties and Midlands base in Cheltenham, launched their IFISA in July 2017 and have seen year on year growth for the ISA product, attracting a cumulative total of more than £26m in ISA funds.

While there was speculation the pandemic would bring uncertainty to the investment market during 2020, FOLK2FOLK continued to see an upward trend of IFISA inflow throughout the course of the year and into 2021, building on its record levels of 2019. About 65 per cent of FOLK2FOLK’s ISA funds are being transferred in from other ISA providers, meaning investors have chosen to move away from their current ISA provider and invest their funds via the platform.

Roy Warren, FOLK2FOLK Managing Director said: “We’re seeing strong ongoing take up of our IFISA. Many investors are turning to IFISAs due to ongoing stock market volatility and current low interest rates which render Stocks & Shares ISAs and Cash ISAs potentially less desirable.

“Without a doubt, investors are attracted to our 6.5% per annum interest rate which they can earn tax-free via our IFISA. But also, the fact our loans are secured against land or property, our cautious approach to risk and that none of our investors have lost any capital (though past performance is not a reliable indicator of future trend).

“With so many P2P and Marketplace platforms moving away from retail investors or leaving the IFISA market, it is vital that investors have choice and opportunity to continue to earn attractive returns tax-free.

“We’re also seeing strong borrower demand for loans, which means IFISA funds are being invested without delay and investors can quickly start receiving their 6.5% p.a. tax free as monthly interest payments, providing them with a supplementary monthly income.

“With Chancellor Rishi Sunak confirming no change in the tax-free allowance for 2021/22 tax year, we’re reminding investors that it’s still not too late to make the most of their 2020/21 tax allowance.”

There are no fees to open a FOLK2FOLK IFISA. Minimum investment amount is £20,000.

FOLK2FOLK is a national marketplace lending platform focused on helping business-owners across regional Britain access the finance they need to grow, develop, or diversify; while providing fixed-rate, property-backed investments for retail and institutional investors.