The platform is looking to entice new investors with a cash-back reward as the competition for assets heats up.
RateSetter is offering new investors up to £100 for opening a new Innovative Finance ISA with the p2p lending platform.
Following on from an uptick in demand for the IFISA in recent months, albeit from a low base, as well as a flurry of launches among the largest platforms, competition is heating up for investor assets.
Advertising spend on IFISA products has made its way onto the tube as well as national media. For example EasyMoney, one of the most recent launches, has taken up a regular advertisement spot in the FT Weekend’s money section over the past month.
P2P platforms are keen to grow their origination volumes through the ISA owing to its reliability and regularity and significant market size.
Ratesetter, which launched its IFISA back February, is advertising returns up to 5 per cent for its 5 Year Market (the longest term it offers for investment)and cash back up to £100 for investors who invest at least £1000 or more for a year at least.