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Lending Works IFISA provides solution for investors caught between cash and shares


For investors frustrated by the poor returns on cash ISAs but also concerned about the current volatility of the stock market, an Innovative Finance ISA could be an ideal solution.

Introduced just two years ago, these products enable investors using peer-to-peer lending platforms to receive interest tax-free. Peer-to-peer lending platforms allow investors to lend money to creditworthy borrowers in return for capital and interest repayments.
Lending Works was the first major peer-to-peer platform to enter the market and believes its Innovative Finance ISA offers the best balance of competitive returns and robust safeguards.
The Lending Works ISA allows investors to earn 6 per cent pa over five years or 4.5 per cent pa over three years. Savers can stay in control of their money and choose to re-invest, draw income or access their money early if they wish.
As with other investments, capital is at risk and returns aren’t guaranteed, however Lending Works offers what it believes is the strongest protection of any unsecured peer-to-peer lending platform. All loan customers are subject to rigorous creditworthiness and affordability checks and investors’ money is automatically split across many loans, diversifying the risk of default. Meanwhile, the Lending Works Shield gives individual investors additional protection against missed loan repayments and defaults. It combines a reserve fund that covers every consumer-funded loan with unique insurance against the primary causes of borrower default.
Nick Harding of Lending Works says: “The Lending Works ISA has been very popular with our investors. Over 60 per cent of our new and existing customers are signing up for our ISA, both for their current year ISA subscriptions and also for transferring money from their existing ISAs with other providers which are often underperforming. For too long, investors have been caught between poor returns on cash and the volatility of the stock market. Our Innovative Finance ISA offers a solution, and customers are voting with their feet.”

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