Abundance offers two per cent sweetener to IFISA investors
ABUNDANCE is offering investors a two per cent return on their Innovative Finance ISA (IFISA) cash balance before 31 May, to encourage people to take advantage of their ISA allowance.
The peer-to-peer lending platform currently has no projects to lend to, so investors’ money is being held in a cash account. It said that it plans to have launched a number of new renewable energy projects by the deadline, which the ISA money can then be invested in.
Customers will then be able to pick and choose between investing in these different debentures, or alternatively transfer their investments to another ISA with another provider before the 31 May deadline.
Abundance’s ISA offerings have so far attracted over 1,400 investors and channelled just under £8m to green energy projects such as Upper Pitforthie Windgen, Monnow Valley Biomass, Swindon Chapel Farm Solar and Thrive Renewables Bond.
The P2P lender was among the first platforms to gain full approval from the Financial Conduct Authority and went live on 6 April 2016. However, its debentures only became eligible for inclusion within the IFISA on 1 November, when new rules allowed debt securities in the tax-free wrapper.
Since then, the platform has aimed to provide IFISAs that would function as a “useful middle ground between cash ISAs paying sub-inflation interest, and highly volatile stocks and shares ISAs riding the wild seas of current global markets.”
Co-founder and joint managing director Bruce Davis said the platform is looking to turn the spotlight on ISA investing.
“We want to turn investing in ISAs from something gathering dust in the forgotten corner of a bank or riding the roller coaster of global stock markets into something that makes a difference in the real world,” he said.
“Investors’ money will be working harder than it would in the bank, boosting the UK’s green economy and sustainable infrastructure, and returns will be tax-free.”