FOLK2FOLK reports a record start to the new tax year for its Innovative Finance ISA (IFISA). The first week of the new 2021/22 tax year saw a 200% increase in ISA inflows compared to the opening week of 2020/21.
FOLK2FOLK has a cumulative total of £33.8m in ISA funds. The company recently announced that more than 65% of its IFISA funds are from investors who have chosen to move away from their current ISA provider and invest their funds via FOLK2FOLK’s platform. The first week of the new tax year has seen a continuation of ISA transfers at this level.
ISAs can be transferred between ISA providers if guidelines are followed to ensure the funds do not leave an ISA wrapper. ISA funds are being transferred to FOLK2FOLK from a variety of ISA types, including other Innovative Finance ISAs. In the first week of the new tax year, more than 20% of FOLK2FOLK’s new IFISA funds were transferred in from RateSetter’s IFISA.
Roy Warren, FOLK2FOLK Managing Director said: “We see investors turning to IFISAs due to ongoing stock market volatility and current low interest rates which render Stocks & Shares ISAs and Cash ISAs potentially less desirable.
“New Investors are attracted to our 6.5% per annum interest rate and like the fact our loans are secured against the tangible assets of land or property. Once part of our community of ‘Folks’, they appreciate the honesty and humanity of our brand and we continue to experience exceptionally high reinvestment levels from both our ISA and non-ISA investors.”
Investors can invest their IFISA funds into any of FOLK2FOLK’s loans. There are no fees to open a FOLK2FOLK IFISA and the minimum investment amount is £20,000.