Folk2Folk has seen a 200 per cent year-on-year increase in Innovative Finance ISA (IFISA) inflows in the first week of the 2021/2022 tax year.
The peer-to-peer lending platform said more than 20 per cent of new IFISA funds were transfer-ins from RateSetter.
Folk2Folk, which has a cumulative total of £33.8m in ISA funds, said on 8 March that was seeing year-on-year growth in IFIA inflows and around 65 per cent of its ISA funds were transfers from other providers. It had previously announced that it was targeting money from collapsed P2P platforms,
The platform has now revealed that the first week of the new tax year has seen a continuation of ISA transfers at this level.
“We see investors turning to IFISAs due to ongoing stock market volatility and current low interest rates which render stocks and shares ISAs and cash ISAs potentially less desirable, ” said Roy Warren (pictured), managing director of Folk2Folk.
“New investors are attracted to our 6.5 per cent per annum interest rate and like the fact our loans are secured against the tangible assets of land or property.
“Once part of our community of ‘Folks’, they appreciate the honesty and humanity of our brand and we continue to experience exceptionally high reinvestment levels from both our ISA and non-ISA investors.”
Last month, Folk2Folk revealed it is on course to achieve a £1m profit for its 2020 financial year, beating its pre-pandemic target.
This came after achieving its biggest month to date in March, during which it facilitated £15m of borrowing and investing.