CapitalRise IFISA volumes double in one year
CapitalRise, a prime property investment platform, has reported a 103 per cent increase in its IFISA volume between 2018/19 and 2019/20 tax years.
Following the lowering of the baseline interest rate to its lowest rate ever, some savers may be deterred from moving money to a cash ISA. Many high-street banks have lowered their Cash ISA interest rates to as little as 0.24 per cent pa, drastically limiting potential tax-free rewards. Savers may be increasingly turning away from savings products such as these to investment products such as Stocks and Shares ISAs or the Innovative Finance ISAs.
However with the recent turbulence in equity markets, investors have been reminded of the volatility risk associated with Stocks and Shares ISAs. This makes the IFISA an increasingly attractive option.
Uma Rajah, CEO and Co-Founder of CapitalRise, says: “We are thrilled with the continued popularity of our IFISA, which remains strong during these uncertain times. With the recent interest rate reductions made by the Bank of England and the volatility in the stock markets decreasing the appeal of Cash ISAs and Stocks and Shares ISAs to many customers, the IFISA is standing out as a very attractive option for investors. Our customers like that our IFISA enables them to fund property loans to developers in some of the best locations in London and the Home Counties and are attracted by the fixed rate of returns.
"As with all investments, capital is at risk but our investments are always secured against a prime property asset which offers downside protection and they have been carefully selected by our expert team, who conduct thorough due diligence on each opportunity. To date, we have repaid over GBP27 million back to investors and we have a track record of zero losses or defaults to date something we are very proud of.
"Awareness of the IFISA is still relatively low, however I believe that now more than ever, it has a major role to play to support the economy by enabling investors to provide finance to support UK property businesses."