LENDINGCROWD has launched an account that enables investors to take an income from their peer-to-peer loans.
The Income Account offers a target return of 5.6 per cent and works in a similar way to the Growth Account by automatically investing funds across all the loans available on the platform.
The peer-to-peer business lender said the key difference is that customers can withdraw their interest, while the capital repayments will be automatically reinvested.
The Income Account is now available for existing Growth Account and Growth ISA investors.
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The Income Account is available within the Innovative Finance ISA (IFISA) wrapper, meaning that Lending Crowd now offers three IFISAs: the passive Growth ISA, which has a minimum investment of £1,000 and a target return of six per cent; the active Self Select ISA, which can be opened with a minimum of £20 and lets customers choose their own investment; and the new Income ISA.
“Our platform was designed to offer higher returns than your cash would earn in a bank account, but we know many of our customers were looking for their investments to generate an income as well,” the Edinburgh-based firm said.
LendingCrowd launched its IFISA last February.