THE HOUSE Crowd has raised interest rates for new investors in its fast-access product, to encourage people to move their money from low-yielding savings accounts.
The peer-to-peer property lender is now offering new investors 4.5 per cent annual returns from its THC Fusion Account, up from four per cent.
The Manchester-based firm said that its rate hike is in direct response to the news that a series of traditional savings providers have been reducing their interest rates, bringing the average easy-access rate down to 0.64 per cent.
“We’re proud to be able to do the opposite of the traditional banks by increasing the rate on our fast-access account for new investors,” said Frazer Fearnhead (pictured), founder and chief executive of The House Crowd.
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“Research shows that around half (48 per cent) of the UK’s adults are saving less than £50 a month. But with an average easy access rate of 0.64 per cent, who can blame them? Our country’s leading providers give us little incentive to save, and that needs to change.
“But it’s not all doom and gloom. We don’t have to put up with the paltry interest rates from traditional providers, because we now have more investment options.”
The House Crowd recently launched a new brand – Money Mog – which is designed for millennial investors who wish to invest in property from as little as £50.