Folk2Folk has seen year-on-year growth in its Innovative Finance ISA (IFISA) inflows, attracting a cumulative total of more than £26m.
The peer-to-peer lending platform, which is seeking up to £100m in institutional investment this year, continued to see an upward trend of IFISA inflows throughout 2020 and into 2021.
This builds on record levels in 2019 and continues year-on-year growth since the launch of its IFISA in 2017.
After announcing it is targeting money from collapsed P2P platforms, Folk2Folk has now revealed it is seeing around 65 per cent of its ISA funds as transfers from other ISA providers.
Read more: Folk2Folk exceeds £400m in lending
“We’re very pleased to see strong ongoing take up of our IFISA,” said Roy Warren, managing director of Folk2Folk.
“With so many platforms moving away from retail investors or leaving the IFISA market, it is vital that investors have choice and opportunity to continue to earn attractive returns tax-free.
“We’re seeing around 65 per cent of our ISA funds coming in from other ISA providers. That is investors who have chosen to move away from their current ISA provider and invest their funds via our platform.
“Without a doubt, they are attracted to our 6.5 per cent per annum interest rate, as well as the fact our loans are secured against land or property, our cautious approach to risk and that none of our investors have lost any capital.
“We’re also seeing strong borrower demand for loans, which means IFISA funds are being invested without delay and investors can quickly start receiving their 6.5 per cent per annum tax free as monthly interest payments, providing them with a supplementary monthly income.
“With chancellor Rishi Sunak confirming no change in the tax-free allowance for the 2021/22 tax year, we’re reminding investors that it’s still not too late to make the most of their 2020/21 tax allowance.”