Investors urged to look at ISA options ahead of upcoming Budget

EasyMoney has urged investors to consider a suitable ISA ahead of the upcoming Budget in March.

The peer-to-peer lending platform – which offers an Innovative Finance ISA (IFISA) – predicted higher taxation in Chancellor Rishi Sunak’s Budget on 3 March, which the platform said makes IFISAs more attractive.

Read more: EasyMoney narrowed losses in 2019 and eyes profitability in 2021

In order to balance the books after a year of emergency funding measures, EasyMoney has forecasted Sunak to raise taxes at least in the short or medium-term and to tighten government spending, while interest rates are set to remain low and unlikely to rise.

Investors have time to think about their ISA options now, before the current tax year ends on 5 April, the platform added.

Read more: P2P platform bosses split on how IFISA inflows will perform this tax year

“Higher taxation will make ISAs look more attractive, but the lower interest rates will make cash ISAs unattractive, and other types of ISAs – like our IFISA, although obviously there are others – worth a closer look,” EasyMoney said in a blog on its website.

“Right now, you have time to think about what kind of ISA will suit you, and you may want to move your current ISA to a different plan for better returns, more security or whatever your ISA goals are.

“But your current provider may apply conditions or charges for moving money, so you need to check this.

“You may also want to look at which providers you like and trust, consider your options and look at what levels of risk you are happy with accepting.”

Read more: EasyMoney: Savers should ditch high street banks for IFISAs