Prime property investment platform CapitalRise has seen a 103 per cent increase in its Innovative Finance ISA (IFISA) volume between the 2018/19 and 2019/20 tax years.
Now in the new tax year, the ISA allowance is renewed, and the platform has encouraged savers to capitalise on this throughout the next 12 months.
CapitalRise said IFISAs are now more attractive because savers may turn away from cash ISAs as many high street banks have lowered their interest rates to as little as 0.24 per cent following the Bank of England cutting the base rate to a record low of 0.1 per cent.
The platform also suggested investors may ditch stock and shares ISAs because of stockmarket volatility, making IFISAs more of an attractive option.
Read more: IFISA awareness drive hoped to boost inflows
“We are thrilled with the continued popularity of our IFISA, which remains strong during these uncertain times,” said Uma Rajah (pictured), chief executive and co-founder of CapitalRise.
“With the recent interest rate reductions made by the Bank of England and the volatility in the stock markets decreasing the appeal of cash ISAs and stocks and shares ISAs to many customers, the IFISA is standing out as a very attractive option for investors.
“Our customers like that our IFISA enables them to fund property loans to developers in some of the best locations in London and the Home Counties and are attracted by the fixed rate of returns.
“As with all investments, capital is at risk but our investments are always secured against a prime property asset which offers downside protection and they have been carefully selected by our expert team, who conduct thorough due diligence on each opportunity.
“To date, we have repaid over £27m back to investors and we have a track record of zero losses or defaults to date something we are very proud of.
“Awareness of the IFISA is still relatively low however I believe that now more than ever, it has a major role to play to support the economy by enabling investors to provide finance to support UK property businesses.”