Folk2Folk opens transfers in for IFISA

The branch-based peer-to-peer lender’s IFISA had previously been open only to existing investors.

The branch-based peer-to-peer lender’s IFISA had previously been open only to existing investors.

Secured peer-to-peer platform Folk2Folk is attempting to expand access to its Innovative Finance ISA. The platform will now allow new and existing investors to transfer in ISA money from other providers. The Folk2Folk ISA advertises interest rates of up to 6.5 per cent per annum.

The minimum amount that can be transferred is £20,000, with no maximum limit. While existing providers may charge exit fees, Folk2Folk will not charge anything on transfers into its IFISA. Funds from Stocks & Shares ISAs will need to be sold into cash before transferral, and transfers of more than £20,000 will need to made in multiples of £5,000.

Folk2Folk is a secured business lending platform with a strong local focus. It uses a system of branches to support its online platform, not unlike a bank. The platform charges an annual administration fee of 1 per cent plus VAT per annum for its ISA product for amounts up to £100,000. Those investing more than £100,000 in the IFISA will never be charged an annual administration fee of more than £1,000 plus VAT.

Folk2Folk was authorised a little over a year ago, and launched its IFISA for existing customers in July 2017. Last week, the platform announced former chief marketing officer Giles Cross as its new CEO. Mr Cross fills the void left by Jane Dumeresque, who resigned without explanation in September of last year.

"Folk2Folk provides a competitive ISA offering to consumers and retirees wishing to earn inflation beating returns of 6.5 per cent per annum, whilst supporting local and rural businesses," said Cross. "We’ve developed an attractive Lender offering, built on a belief of transparency, decency and fair exchange. Our secured lending platform reports zero losses for Lenders since its launch in 2013. Our attitude to Lender fees, coupled with our asset-backed approach to local lending delivers a tangible, transparent and simple market alternative that’s attractive to consumers looking for inflation busting returns coupled with a low-level of risk."