THE INNOVATIVE Finance ISA club is growing at full speed as fixed-income specialist Basset & Gold became the third player to unveil its tax-free wrapper on Tuesday.
The firm, which provides finance both to marketplace lending platforms and direct borrowers, is offering two options on the new product: a three-year investment yielding 6.12 per cent interest monthly or a three-year compounding investment yielding 20.1 per cent return at the end of the term- equivalent to 6.7 per cent per year.
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The three-year compounded investment will enable savers to utilise the full extent of the ISA annual allowance, which stands at £15,240 for the current financial year and will increase to £20,000 next month.
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“The ISA has long been the hero product of the UK savings market, and we are delighted that Basset & Gold can now make its mark on this space at the forefront of the introduction of the IFISA,” said the lender’s director of relationship management Daniel Smith.
“Tired of complex low interest rate products, consumer demand is soaring for new and innovative forms of finance. Having access to a product that can give you tax-free returns at security levels such as ours is one of the most exciting recent developments in UK finance.”
In contrast to IFISAs generally offered by peer-to-peer platforms, Basset & Gold’s wrapper will guarantee a fixed rate of returns.