FOLK2FOLK, the Marketplace lender to regional Britain, reports continued strong inflows for its Innovative Finance ISA (IFISA).
The company launched its IFISA in July 2017 and has seen year on year growth for its IFISA 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.
Roy Warren, FOLK2FOLK Managing Director said: “We’re very pleased to see strong ongoing take up of our IFISA. With so many 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 seeing around 65 per cent of our ISA funds coming in from other ISA providers. That is investors who have chosen to move away from their current ISA provider and invest their funds via our platform. Without a doubt, they are attracted to our 6.5% per annum interest rate, as well as 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 to date; though of course, past performance is not a reliable indicator of future trend.
“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.