Crowd for Angels launches 2pc sweetener on IFISA funds
CROWD for Angels has unveiled a bonus two per cent offer on funds deposited into Innovative Finance ISA (IFISA) accounts from the opening day to 15 June.
The cash back bonus will be put into clients’ accounts as a single payment within three working days of the June deadline, the crowdfunding platform said on Friday.
The move comes shortly after the firm launched its tax-free wrapper on 9 March, which it said has already attracted 70 to 80 new investors seeking to put their money to work ahead of next week’s tax-year deadline.
The platform currently offers three asset-backed crowd bonds, yielding 6.4, nine and 12 per cent. It is launching a fourth bond next week, which will return 12 per cent, increasing the average interest rate of the tax-free wrapper to around 10 per cent.
Read more: Predictions of IFISA surge may be overly optimistic
“With interest rates on cash ISAs currently at an all-time low, we expect to see high demand for our crowd bonds,” said the platform’s chief executive Tony De Nazareth.
“Investors willing to take on extra risk by lending to companies have the opportunity of making tax free returns of an average nine per cent per annum on our asset backed bonds, which compares to an average interest rate of just 0.64 per cent on a cash ISA.”
The firm channels money to UK firms from about 3,000 investors, three quarters of whom are represented by high-net worth individuals and the remaining 23 per cent by retail clients.
Look out for the upcoming print edition of Peer-to-Peer Finance News for more insight into platforms’ fee adjustment strategy.
Read more: UK Bond Network unveils IFISA with 1pc cashback sweetener
