easyMoney, part of Sir Stelios Haji-Ioannou’s easy family of brands, has launched a second Innovative Finance ISA product for everyday investors, with a target annual interest rate set at 7.28 per cent.
The new ‘Balanced’ IFISA will allow individuals to invest in a range of peer-to-peer loans to property professionals, secured against both UK residential and commercial real estate. Loans written are limited to 75 per cent loan to value (LTV).
The ‘Balanced’ IFISA follows easyMoney’s first product, the ‘Conservative’ IFISA, which offers a target 4.05 per cent annual interest and limited to 65 per cent LTV. Launched in February, the platform has yet to reveal any data on the product’s uptake by investors.
easyMoney’s own research showed that the number of young people saving via ISAs has fallen 37 per cent in five years, with 1.2m under-25s holding ISAs in 2015 compared to 1.9m in 2010. The effect of the iFISA has yet to be calculated, but according to AltFi’s own research released in January 2018, familiarity with the new tax wrapper is booming among the younger generation. Some 15 per cent of 18-34 year olds interviewed say they already invest in peer-to-peer loans, with 9 per cent of that number using an IFISA.
“With the launch of the new ‘Balanced’ IFISA, easyMoney is making money work even harder for investors seeking higher returns,” said Andrew de Candole, CEO of easyMoney.
“easyMoney strives to offer inflation-busting interest rates, with a new alternative to cash ISAs that can increase returns, in exchange for a little extra risk. Our ‘Conservative’ IFISA is aimed at investors who are looking for something more than the paltry rates offered by cash ISAs, while the ‘Balanced’ IFISA is for investors who are looking for something simpler than stocks & shares ISAs.”