EasyMoney chief executive Andrew de Candole has warned cash ISA savers that they are losing money in real terms as a result of rising inflation and urged them to consider Innovative Finance ISAs (IFISAs).
He cited HMRC figures showing that the total invested in cash ISAs increased by 11 per cent from £44bn in the 2018/19 tax year to £48.7bn in 2019/20.
De Candole said that yield-seeking investors may want to consider an IFISA that produces a greater return on their investment, albeit with a greater element of risk.
Read more: EasyMoney became profitable in 2020
“Investors in cash ISAs are losing money as things stand,” de Candole said in a blog post on the platform’s website.
“There are a range of options investors can consider, which may involve more risk but also offer the opportunity for real returns.
“One such option could be one of our expertly managed IFISAs, which offer the opportunity for your savings pot to grow rather than shrink in real terms.”
EasyMoney made an operating profit of £57,184 last year, after posting a loss of more than £1.023m the previous year.