As we head towards the end of the tax year, think about where you have your ISA, what type of ISA products are available and whether there is another ISA provider that might be better for you.
The Innovative Finance ISA lets you use your tax-free ISA allowance in peer to peer (P2P) lending, as on rebuildingsociety.com.
Here’s a few reasons why we think that rebuildingsociety.com might be the best place for your IFISA.
Our Net Return
Lending on rebuildingsociety.com you can lend at rates of up to 20%. Our current platform average net return, with income reinvested is 8.6%*. This compares very favourably to other ISA products, such as the Cash ISA. However, you should remember that unlike a Cash ISA, your capital is at risk in an IFISA. Our historic performance is strong, but performance can vary with marco-economic conditions.It’s Flexible - Access Your Funds
Each month you receive repayments from businesses, which may be withdrawn or reinvested. The availability of our secondary market means that you can access money from your IFISA by selling them on the secondary market, making our IFISA, a flexible ISA. So do not need to worry about your funds being completely tied up and being inaccessible if you need them. Provided there is a demand for the loan parts on the secondary market, you should be able divest from the loans. Withdrawing from your ISA part way through the tax year will not affect your ISA allowance, just credit the funds back to your IFISA account before the end of the Tax year to benefit from the tax wrapper. So you can dip in and out of your IF ISA.Support UK Businesses
When you invest on rebuildingsociety.com you’re lending directly to real UK SMEs and in doing so you’re earning a healthy return. UK Small and Medium businesses are the backbone of the UK economy. By lending to these businesses, that have been underserved by the banks, you’re directly contributing to the UK economy.High Levels of Transparency
We pride ourselves of the level of transparency that we offer on our platform in comparison to many other Peer-to-peer lending platforms. When you lend on rebuildingsociety.com you’ll always know exactly who it is you’re lending to. Not only this we’ll also help you understand the risks associated with lending to particular companies, helping you make the best lending decision for you.Things to Consider
An IFISA may allow you to earn higher returns than many other ISA products, however, an IFISA involves making numerous small loans to UK Businesses. Therefore, there is a chance that some of the businesses you lend to might not be able to fully repay the loan, thereby putting your capital at risk, until it is recovered or lost. You should ensure that you understand the risk associated with the IFISA and peer-to-peer lending, to find out more, please read our risk page. *The current platform average net return is the compounded annual return after bad debts and fees for lenders on the platform. Past returns may not be indicative of future returns.To find out more about our IFISA please visit our IFISA Page, read our Lender FAQs, or get in touch by emailing support@rebuildingsociety.com
