The Innovative Finance ISA (IF ISA) becomes actionable for all UK savers next month and the peer to peer industry is moving rapidly to embrace the new investment vehicle. Assetz Capital, has announced its plans for the IF ISA.
According to Assetz Capital management, both new and existing investors may open an Assetz Capital IF ISA by choosing one or more of the four existing investment accounts on offer. These accounts will run alongside existing Assetz Capital investments, from the same account log-in for simplicity. The options also include Assetz Capital’s relatively new feature the “Quick Access Account” (QAA) – a service that brings almost immediate liquidity, with no fee, for investors. Currently the QAA has a target rate of 3.75%.
In brief, Assetz Capital IF ISA accounts will include:
- Quick Access ISA; 3.75% pa target rate; (no withdrawal restrictions and with provision fund) and an April one-month bonus rate of 4.25%
- Great British Business ISA; 7% pa target rate (with provision fund)
- Green Energy ISA; 7% pa target rate (with provision fund)
- Manual Loan Investment ISA; offering a typical 10% pa return before any losses but without a provision fund
All loans are secured by val property and three of the four are backed by the Provision Fund that can be utilized to cover a loss in case of default.
Stuart Law, CEO at Assetz Capital, described the April 6, 2016 as “Christmas has come early” for UK investors;
“Peer-to-peer investment carries a significant return already, but by allowing for a tax-free ISA wrapper, investors will see further benefits. The days of fees and charges for accessing ISA investments are also gone. As well as our IF ISA accounts offering higher risk-adjusted returns than typical Cash ISAs, our accounts have no charges for investors looking to withdraw their funds,” said Law.