Business Information

An Innovative Finance ISA allows people to invest in eligible peer to peer lending products. It is considered the best innovative ISA providers service. With this finance service, people can use their annual ISA allowance to lend money through investment platforms such as p2p lending. The interest that is earned through this investment has a tax-free wrapper which means the gained interest will never be taxed. P2P lending allows people to invest directly by lending funds to consumers, businesses or other projects using the peer to peer lending platform. Then whoever borrows the funds pays back the borrowed money with interest. However, IFISA puts investors’ capital at risk and is not covered by the Financial Services Compensation Scheme (FSCS). An IFISA acts as a loan. Hence the borrowers may default on their payments. Majority of the platforms which provide this service have some kind of reserve fund or backup in place that protects investors’ funds against borrowers who default on

Self Invested Personal Pension

September 09, 2020

A SIPP or Self Invested Personal Pension is a retirement savings account which is tax efficient. This savings account is available in the UK. A SIPP account offers freedom to individuals to allocate their assets in a variety of investments approved by the Her Majesty’s Revenue and Customer (HMRC) which is a non-ministerial department of the government. This department is responsible for collecting tax and paying state support. The investments approved by the department includes bonds, stocks, exchange-traded funds and mutual funds. SIPP pension account is different from the traditional company-sponsored pension, in which companies were responsible for shortlisting the investment options. The Self Invested Personal Pension was first introduced in the year 1989 and ever since has become progressively popular in the United Kingdom because of the end of lifetime final salary pensions and lifetime careers. Individuals who invest in SIPP account can withdraw their funds when they reach the

IFISA providers

July 25, 2020

Peer to peer lending is a fast-growing industry which has gathered popularity among new and old investors. Its unique feature is that the investment made through it is tax-free; the interest that investors earn is never taxed. There are a lot of IFISA providers , some new and some experienced in the market that offer Innovative Finance ISA. Peer to peer lending platforms involve investors that give loans to businesses or consumers in return for an interest rate, which is higher compared to the cash ISA interest rates. This type of investment offers an alternative to people who want high returns than the cash ISAs; however, they have low volatility compared to stocks & shares. It is a type of banking that removes the middleman. However, with p2p, there still is a middleman which is the platform that investors or lenders use. Nonetheless, it does cut down a lot of the cost which a bank incurs as a middleman; this means that the investors get better returns without bumping up intere

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