The Innovative Finance ISA (IFISA) is a “first of many” by easyMoney and will be available to investors across the UK, offering a current target of 4.05% tax free rate.
Haji-Ioannou (pictured) said: “Everyday investors in the UK have gone almost a decade without real interest rates. With the easyMoney IFISA, we’re offering something new and taking on the big boys.”
easyMoney explained that this product can offer access to higher interest rates, compared with cash Isas offered by the high street banks because it has no costly branch networks to maintain.
Additionally, the firm said that unlike most banks, it doesn’t face high maintenance expenses for out-dated computer systems, is not obliged to have expensive capital requirements to protect investors, and can provide investors direct access to loans secured against UK property, allowing investors to “become the bank”.
Designed for those who are nervous about the potential volatility of stocks and shares Isas, the firm said that the easyMoney Isa will take on a market-disrupting approach, similar to its path with easyJet.
With cash Isa’s offering at best 1.21% interest and inflation at 3%, easyMoney said it means “savers are losing money every day in real terms” and this Isa is for those “who have had enough” of the poor interest rates currently offered.
Andrew de Candole, chief executive officer 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.”
The firm confirmed that like easyJet plus, easyMoney has ‘easyMoney plus’, providing instant discounts of between 3%-55% at over 100 of Britain’s biggest retailers.
easyMoney plans to further grow its range of personal finance products offered through its fintech platform.
