LandlordInvest’s IFISA customers invest 19pc more money
LANDLORDINVEST’S Innovative Finance ISA (IFISA) customers are more active and invest 19 per cent more money than standard account investors, according to statistics released by the peer-to-peer lender.
The property lender, which launched the tax-free wrapper late last month, said that the average amount deposited in an IFISA account is £2,404, which is 19 per cent higher than the average £1,945 deposited by investors using a standard account.
The data also revealed that 67.9 per cent of customers signed up to LandlordInvest’s IFISA had made at least one investment through the platform, compared to just 16.8 per cent of standard account investors who had registered with the website.
IFISA customers are also more spread out across the UK. 32 per cent of standard account investors are based in London, whilst only 21.4 per cent of LandlordInvest’s IFISA account investors reside in the capital.
“It probably does not come as a surprise that our IFISA investors are both more active and tend to invest more than our standard account investors, taking an advantage of earning tax-free income,” said Joe Vallender, LandlordInvest’s chief technology officer.
“We believe that this trend is likely to continue given that the current tax year is soon coming to an end and more savers will look to allocate their portfolios into tax-efficient products.
“We have ramped up our capabilities to accept an influx of savers looking to invest into our property-backed IFISA and will also shortly looking to make our ISA flexible, giving savers more freedom to replace withdrawn cash.”
LandlordInvest’s findings corroborate industry predictions that the IFISA will attract more consumers – and more money – to the platforms, as individuals look to take advantage of tax-free earnings on their investments.
Last week, Lending Works’ IFISA hit its £1m investment limit within just 24 hours of its launch, due to unexpectedly high demand from investors. The platform had limited initial investment to avoid long waiting times for money to be lent out and is hoping to re-open to new investors this week.
Read more: Lending Works launches IFISA