Earth Day: Five ethical and social IFISAs
Today is the 52nd Earth Day – an annual event encouraging people to take action against climate change.
With this in mind, it’s a good time to consider how investors can help the planet – and each other.
The good news is that peer-to-peer investors can fund ethically and socially good projects while earning tax-free returns, via an Innovative Finance ISA (ISA).
Here Peer2Peer Finance News highlights a selection of IFISAs currently available to investors that can help you earn bumper returns while keeping your halo in tact.
Read more: What P2P platforms are doing to meet ESG goals
Read more: A dozen property IFISAs to look out for this tax year
Abundance
Abundance has been providing impact investments since its 2012 launch.
From just a £5m minimum investment, the crowd bonds platform allows lenders to fund green energy and infrastructure projects. It has also partnered with three councils to provide community municipal bonds that support renewable energy projects in a local area.
Last year, the platform delivered IFISA returns of 1.2 to 10 per cent depending on the bond chosen.
Assetz Exchange
Lenders can invest in Assetz Exchange’s IFISA to fund the development of supported living apartment blocks for people with learning disabilities and ex-prisoners, and can also use a function on the platform to donate some or all of their investment income to charity.
The platform, which is sister company of the UK’s largest peer-to-peer lender Assetz Capital, has predicted investor deposits to grow by 350 per cent this year.
Read more: Final ISA manager list before end of the tax year revealed with 29 P2P lenders
Energise Africa
Energise Africa, which was launched by Ethex and Lendahand, provides financing to solar energy projects in sub-Saharan Africa, giving locals access to clean energy and opportunities.
Through the IFISA, investors can back these impact investments from as little as £50 while seeking target returns of up to six per cent.
The IFISA provider, which has supported around 7,000 small and micro-sized enterprises, generated five per cent in average returns to investors through the tax wrapper last year.
Read more: Six IFISAs that target inflation-beating returns
Folk2Folk
Folk2Folk is vocal about supporting communities through its business and property lending and it also offers loans for renewable energy and green projects.
Last year, the P2P platform, which offers an IFISA wrapper, generated 6.5 per cent average returns.
Lendwise
Lendwise focuses on putting the S in ESG, with its focus on education finance.
Lenders can fund Lendwise’s education loans, which are primarily used by post-graduate students seeking a fixed rate loan to fund their studies.
The platform is targeting nine per cent returns this year.
The P2P platform has seen strong demand for its IFISA since introducing the tax wrapper in January this year.
