The Innovative Finance ISA (IFISA) is a new ISA that became available 6 April 2016.
The IFISA allows you to earn tax-free returns by lending through peer-to-peer lending platforms such as LandlordInvest. You may in the current tax year invest £20,000 across a combination of a cash ISA, stocks and shares ISA, and the IFISA.
LandlordInvest, being fully FCA authorised, was one of the first platforms that offered a residential property-backed IFISA.
Our IFISA offers a fixed return rate and is less vulnerable to stock market fluctuations than the Stocks & Shares ISA. The Cash ISAs currently offer returns of around 1.0% per annum, whilst the LandlordInvest IFISA may offer returns of up to 12% per annum. Although keep in mind that higher returns also means higher risk.
Further, please remember that LandlordInvest is not covered by the Financial Services Compensation Scheme (FSCS) and your capital is at risk.
Other benefits with the LandlordInvest IFISA include: