Stocks & Shares ISA vs Innovative Finance ISA (IFISA)

Global stock markets are being buffeted by a host of ill-winds from the US/China trade war, UK/EU Brexit trade negotiations, the threat of potential recession for the German and Japanese economies and disruption posed by coronavirus.

In an environment where global stock markets are seeing their biggest falls since the 1987, perhaps a fixed return, property backed option paying an interest rate of typically 6.5% p.a. tax-free warrants a closer look?

What is an IFISA?

An Innovative Finance ISA (IFISA) allow you to utilise your ISA allowance while investing into peer-to-peer (P2P) loans. At FOLK2FOLK, your IFISA invests in secured loans for credit-worthy businesses in England.

What returns can I expect from my IFISA?

When investing via the FOLK2FOLK IFISA you can choose to receive an interest rate of between 4.5-9% p.a. with most investors choosing our typical rate of 6.5% p.a.  Our IFISA is an ‘income ISA’ delivering you your tax-free earnings monthly.

Is it ‘safer’ than investing in stocks and shares?

There is risk associated with all investments and when investing into any peer to peer loans your capital is at risk and not protected by the Financial Services Compensation Scheme (FSCS).  At FOLK2FOLK, all our loans are secured against the tangible assets of land or property and we only lend up to a maximum of 60% of the value of the security, which creates a buffer against a downturn in the property market.

If you’ve seen the value of your share portfolio fall, perhaps it’s time to take a look at a FOLK2FOLK IFISA, find out more and read our handy mini guide.

As with all investments, your capital is at risk.  The Financial Services Scheme (FSCS) does not apply to peer to peer lending. ISA rules apply.


Share this: