Individual Savings Accounts (ISAs) have changed considerably since they were first introduced 20 years ago

With four types now available (Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs and Innovative Finance ISAs) there’s a lot of choice for savers and investors looking for a tax-free return.

Whilst choice is a really positive thing, it’s also important for customers to understand how all the different types of ISA work, so that they can make informed financial decisions.

We conducted independent research1 which showed that whilst 63% of UK adults are aware of Cash ISAs, understanding of other types of ISAs and their purpose is low, with only 7% aware of the Innovative Finance ISA.

Our research also found that many UK adults were unaware of the annual ISA allowance and the rules around transferring ISA money. Only 15% of people said they would know where to go to open each of the ISA types and only one fifth were aware that if you hold an existing ISA, you can transfer it to another provider.

The Innovative Finance ISA

Whilst the IFISA is still a relatively unknown product, it’s definitely catching on. The latest HMRC statistics show a six-fold increase in subscriptions to IFISAs over the past year and we’ve seen a growing number of CapitalRise members choosing to invest with an IFISA.

In fact, investments through the CapitalRise IFISA represented two-thirds of the total investments on the CapitalRise platform over the last 12 months.

Interestingly, although only one in six millennials2 surveyed said that they understood the tax benefits of using an ISA, we see strong demand amongst our millennial members, with 75% of them having opened a CapitalRise IFISA.

Investing with an IFISA

Our investment opportunities are IFISA eligible, giving CapitalRise members access to tax-free returns on prime property backed investments. It’s quick and easy to set up an IFISA with CapitalRise and start investing. If you’d rather transfer in an existing ISA, just let us know and we’ll help you get started with our hassle-free transfer service.

Take a look at our latest investment opportunities or learn more about investing with CapitalRise.

Notes
1HMRC ISA stats source: https://bit.ly/2PUh1e1
2Millennials are considered to be those aged 22 to 38 years old

Research methodology: On behalf of CapitalRise, Censuswide conducted online surveys with 2,003 UK adults (aged 16+) between 20 March 2019 to 22 March 2019.

Important Information

Capital is at risk and interest payments are not guaranteed. Investments on our platform are illiquid and investors should consider these as long term investments. Past performance and forecasts are not reliable indicators of future performance. There is no recognised market to sell this investment. Tax rules and allowances are dependent on individual circumstances and may change in the future. See key risks before investing. Investment performance is not covered by the Financial Services Compensation Scheme.