RateSetter IFISA attracts £175m in first year
RATESETTER’S Innovative Finance ISA (IFISA) has attracted £175m in its first year.
The data spans two tax years but the peer-to-peer lending platform said the IFISA money now represents one fifth of its £830m funds under management.
Almost one quarter of RateSetter investors have opened an IFISA with 16,500 people currently enjoying their returns tax-free within the wrapper, Mario Lupori (pictured), chief investments officer at RateSetter, said.
“We have always been confident that investing with RateSetter delivers excellent value and that the tax-free ISA wrapper makes investing more attractive still – but we have been blown away by the popularity of the RateSetter ISA in its first year,” Lupori said.
“With even the best cash ISAs barely matching inflation and the volatility of stocks and shares testing investors’ nerves, the healthy and steady performance of the RateSetter ISA makes it stand out. 2019 could be the year that we see the IFISA really take off.”
RateSetter launched its ISA in February 2018.
The platform hit £3bn of total lending earlier this year.
Of the £3bn loanbook, £820m of the loans are still active and £2.2bn has been repaid by borrowers, generating returns of £120m for RateSetter investors, who have enjoyed an average annual interest rate of 4.4 per cent per year since the platform launched in 2010.
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