IFISA one of the best ways to invest, according to easyMoney
Aside from precious metals, the best way to grow savings is by putting them into an Innovative Finance ISA (IFISA), according to research by easyMoney.
The peer-to-peer investment platform found that the average annual yield of an IFISA is 7.28 per cent, coming in just after gold and silver, the prices of which rose by 7.7 per cent and 7.6 per cent, respectively, over the last year. IFISA gives investors access to peer-to-peer lending or crowdfunding investments while still benefiting from their tax-free ISA allowance.
In contrast, a one-year cash ISA account on average provides growth of 5.48 per cent. The next best options are putting your money into one or two-year fixed-rate bonds, which provide average growth of 5.45 per cent and 5.35 per cent, respectively.
“If a household or family already has financial concerns, the arrival of Christmas will inevitably bring mixed emotions. It’s a joyful time of year, but can also be an expensive one, even when done on a budget,” commented Jason Ferrando, chief executive of easyMoney.
“But a great way to mitigate at least some of the financial strain is to plan ahead and start putting money aside throughout the year in time for next year’s celebrations. Better still, you can make your money work by investing it. Precious metals give you great returns, but they’re also the preserve of wealthy, professional investors. For most people this isn’t realistic, so we’re delighted to see that IFISAs provide almost identical returns in a way that everybody can get involved with and benefit from.”
Previously, easyMoney found that interest in the IFISA rose by 150 per cent this year, with investors seeking out better returns amid economic uncertainty.
The UK government has sought to make the product more attractive recently, with the chancellor announcing new rules in his Autumn Statement.
Read more: The new IFISA rules explained
Read more: Invest and Fund “relief” at new IFISA rules