An IFISA is a comparatively new category of ISA (Individual Savings Account), and it sits between cash and stocks & shares ISA. Therefore, it makes it possible to invest tax-free via peer to peer investment firms like Kuflink and Zopa. With an Innovative Finance ISA, you can either utilize your total £20,000 annual allowance, or you can split your investment between different ISA types.
Note: the taxes depend on the individual circumstances and might change in the future. The Individual Savings Account rules apply.
The ISA investment is flexible, which means you can replace the money you take out with in the same year without it counting to your annual ISA allowance; however, withdrawal charges may apply.
If you want to take out your funds, you will have to send a request to withdraw the money, and your p2p lending will process your request. There is no guarantee of instant access; you will get your money whenever funds are available to take over your investment. Perhaps the most attractive thing about IFISA investment is that you can manage online, from anywhere. You can deposit, invest and withdraw your funds from wherever you are through your online account.
Better stability, Greater returns
The IFISs provide investors with better returns compared to an average cash ISA. Also, while being more stable than the stocks & shares ISA.
Bring ISAs Together
Transferring ISAs is a better way to ensure that your investments or savings continue to work better for you. Furthermore, your ISA can make it easy to control your funds, allowing you to do other things that you like. If you wish to you can transfer your ISA funds to other peer to peer lending firms. But other firms might charge you, so you need to check with your current service provider to avoid unexpected charges. Keep in mind that transferring ISA from previous year doesn’t affect your current annual ISA allowance.
Misconceptions and Myths about ISA Investment
Individual Saving Accounts (ISA) is one of the most well-known investment and savings product in the UK, but they are subject to several misconceptions and myths. So, we are going to clear such confusions for you so you can make a well-informed decision for your finances.
While several p2p firms are proud of their exclusive technology, there are many options for firms that prefer to outsource it. Many white label solutions have become popular in past years. More fintechs wake up to advantages of offering oven-ready technological solutions to peer to peer lending firms and their investors.
However, the peer to peer market has become a lot competitive over the past years. But having more options has made it easier for anyone to make investments and grow their savings. If you are looking for a good investment opportunity, then you should consider Innovative Finance ISA. Just make sure that you do your research and understand how everything works so you can make a sound and well-informed decision.
Author Bio: Written by Meghan Hale, a content writer, and editing machine. She is working with Deepak Shukla. You’ll find me yelling at my dog to stop barking, whether it be at the neighbors or on a long afternoon walk