RateSetter Innovative Finance ISA is Finally Here

Peer-to-peer lending platform RateSetter has shared that is Innovative Finance ISA (IFISA) will launch tomorrow (February 8th). RateSetter said the IFISA will initially be available to existing customers, then to new customers on 1 March and to inward transfers from other ISAs in April.

The creation of the IFISA has been a boon for alternative finance platforms – specifically UK P2P lenders. The IFISA may represent an interesting alternative to current ISA holders that are seeking a better risk adjusted return on their savings

Rhydian Lewis, RateSetter’s CEO and founder, commented on the announcement;

“RateSetter’s purpose is to give people the opportunity to earn more on their money. Our ISA makes that opportunity even more compelling because investing is now tax-free. Cash ISA savers are frustrated with  low interest rates, while inflation is always nibbling away at their money. Stocks & Shares ISA investors have enjoyed good  returns recently but may be nervous of market falls, as demonstrated in the last few days. Lending is a third asset class in the middle, offering the potential for higher returns than cash without the volatility of shares.With RateSetter’s excellent track record and our focus on the retail investor, we believe our ISA will become an attractive home for people looking to put their money to work.”

Investors may add up to £20,000 in each tax year and will be able to transfer money in from other ISAs from April 2018. Currently, the RateSetter IFISA is expected to generate 3% to 6% in annual interest for investors.

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