Since launching its Innovative Finance ISA back in February, the peer-to-peer lending platform has seen strong demand from investors.
Peer-to-peer lender RateSetter has seen a inflows of more than £130m into its Innovative Finance ISA in just eight months.
The firm, one of the three largest P2P lending platforms in the UK, launched its IFISA to existing customers in February and new customers in March. Like its peers Funding Circle and Zopa, the platform was fully regulated and therefore able to launch an IFISA later than many of its smaller peers.
John Battersby, head of communications at the firm, says that demand has been higher than expected for Ratesetter's ISA.
“The popularity of the RateSetter IF ISA has exceeded our expectations - since launch in February, investors have subscribed £130m and this continues to grow. With Cash ISAs unable to even keep up with inflation, the RateSetter ISA has quickly become a real option for people seeking better returns in exchange for accepting some risk," he said.
Official government figures out last week suggest investors have stashed £290m in peer-to-peer loans within the Innovative Finance ISA (IFISA) in the 2017-18 tax year.