You are here: Home - Investing - Experienced Investor - News -

New Easy ISA targets 4.05%

Written by:
easyMoney is launching a new Innovative Finance ISA, targeting an interest rate of 4.05%.

The ISA invests in loans to commercial and residential mortgages. The group’s origination team lend money to professional developers and buy-to-let investors. The income comes from their loan repayments. All loans are secured by a first legal charge over a property.

The group said the new ISA is aimed at investors who ‘have had enough of the poor interest rates offered by cash ISAs and are nervous about the potential volatility of most Stocks & Shares ISAs.’ However, investors should note that the ISA is not protected by the Financial Services Compensation Scheme (FSCS) and the income is not guaranteed.

easyMoney has ‘easyMoney plus’ credit card, which gives discounts of between 3%-55% at over 100 UK retailers, including John Lewis and Marks & Spencer.

Andrew de Candole, CEO of easyMoney, said: “Financial services in the UK are in desperate need of a shake-up. Like European air travel 23 years ago, the ISA market is crying out for someone to give everyday investors more for their money.

“We’re offering a clear, simple alternative to a cash ISA for investors looking for real returns in exchange for a little more risk. The inflation-busting interest rates we target are streets ahead of anything the banks could contemplate.”

Your Money View:

While it’s nice to have an investment with perks, EasyMoney appear to suggest that this is ‘only a little more risky’ than a Cash ISA, which it really isn’t.

Loans to property developers are some way from putting cash with a bank and the lack of FSCS backing should give potential investors pause for thought. Yes, the max loan-to-value is 70% and yes, the origination team are experienced, but 4.05% is only a ‘target’. The income is not guaranteed, nor is your capital. Is it really worth it for an income of 4.05%?

We’d rather take our chances on the stock market.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Millions set to see energy bills fall

The government is set to introduce new legislation to cap default energy tariffs which should see millions of users pay...