Landbay unveils its IFISA
LANDBAY has become the latest platform to launch its Innovative Finance ISA (IFISA), offering investors a rate of 3.75 per cent.
The buy-to-let peer-to-peer lender, which received ISA manager status in January, becomes the second Peer-to-Peer Finance Association member to launch its offering, following Lending Works earlier this month.
Investors will need a minimum of £5,000 to open the Landbay IFISA, compared with £100 in its non-ISA account.
“When the chancellor first announced the IFISA would launch in April 2016, it was hailed as a victory for savers and investors alike,” said John Goodall (pictured), chief executive of Landbay.
“It’s taken a little longer than expected for products to pass regulatory scrutiny and reach the market, but we’re proud to be one of the first platforms to be offer investors the benefits of the tax wrapper, and in time for the end of the tax year.”
The ‘big three’ platforms – Funding Circle, Zopa and RateSetter – are still on interim permission.
Uptake of IFISAs so far has been strong, as yield-hungry investors clamour to take advantage of tax-free earnings before the end of the tax year in April. Earlier this month, Lending Works had to stop accepting new money transfers into its IFISA due to “unbelievable demand” within the first 24 hours.
Read more: Lending Works re-opens to IFISA investors