Crowd for Angels’ new IFISA to offer up to 12pc returns
CROWD for Angels has become the latest firm to unveil its Innovative Finance ISA (IFISA), which will offer interest rates of up to 12 per cent.
The crowdfunding platform launched its tax-free wrapper on Thursday, offering two secured bonds already available. The firm told Peer-to-Peer Finance News that it will be adding two more bonds in the next seven days.
This will yield up to 20 times more than cash savings to investors looking to put their money to work before the end of the tax year.
Read more: See the top rates in our IFISA guide
The first two companies that have issued IFISA-eligible crowd bonds through the platform are bar and restaurant group Seven Spirit and Pay It Monthly, a firm that helps other companies arrange interest-free finance for their customers.
The former is aiming to raise up to £400,000 and will offer investors 6.4 per cent interest per year, while the latter is looking to raise £200,000 at a nine per cent interest rate.
And next week it will be the turn of a car financing firm and a Midlands-based manufacturing company, offering returns of 9 per cent and 12 per cent respectively, said Crowd for Angels.
The crowdfunding specialist will guarantee that all bonds available through the wrapper are secured against physical assets of the borrowing companies or other securities such as debentures.
“With interest rates on cash ISAs currently at all-time lows, we expect to see high demand for our crowd bonds,” said Crowd for Angels’ chief executive Tony De Nazareth.
Read more: Money&Co unveils its Innovative Finance ISA