UK-based peer-to-peer lender RateSetter announced on Thursday its ISA has now passed the milestone of attracting £250 million in subscriptions. RateSetter reported that in under 18 months since its launch in February 2018, the RateSetter ISA has attracted more than £250 million in subscriptions, which also includes £50 million of inflows over the last three months alone.
“The Innovative Finance ISA (IF ISA) is a new category of ISA, that sits somewhere between the traditional Cash ISA and Stocks & Shares ISA. It makes it possible to invest through peer-to-peer platforms such as RateSetter, tax-free. You can use your full £20,000 ISA allowance in our Innovative Finance ISA. Alternatively, you can split your investment between each type of ISA providing you stay within the overall £20,000 limit. Make sense? We think so. So far, over £150 million has already been invested through our IF ISA.”
Speaking about the latest milestone, Mario Lupori, Chief Investments Officer at RateSetter, stated:
“Only 18 months ago the RateSetter ISA was an unknown quantity, but now the numbers speak for themselves. Our ISA has quickly attracted £250m and with a combination of steady, tax-free returns and well-managed risk it is becoming a real alternative to Cash ISAs. It’s clear that peer-to-peer investing is becoming a mainstream investment option.”
RateSetter went on to add that 1 in 3 RateSetter investors are earning interest tax-free with the RateSetter ISA, enjoying an interest rate of 4.5% per annum on average.