FOLK2FOLK, the national, award winning lending platform for local and rural business announces it has enabled ISA transfers for new and existing customers.
By allowing ISA transfers from other providers, FOLK2FOLK Lenders can earn tax-free interest of 6.5%pa on their ISA money by lending it to rural and local UK businesses whilst being part of a Local Lending Movement across the UK, helping these businesses to grow, diversify or start-up.
The minimum amount Lenders will be able to transfer will be £20,000 with no maximum limit. There will be no charges from FOLK2FOLK to transfer funds from an existing cash or Stocks & Shares ISA. There may be an exit charge from their existing provider. Funds from Stocks & Shares ISAs will have to be sold into cash to before being transferred to FOLK2FOLK. Transfers above £20,000 will have to be in multiples of £5,000 lump sums.
FOLK2FOLK’s dedicated ISA team will manage the transfer process from start to finish. The straight-forward process will involve Lenders registering for an ISA transfer and in due course filling in a form to provide authorisation for FOLK2FOLK to request funds to be transferred from their existing ISA provider to their FOLK2FOLK IFISA.
Lenders will have total control over the businesses and geography of where their money is lent as well as how much they wish to lend in each loan.
FOLK2FOLK do not charge Lenders for entering loans and there is no difference between the rate a Borrower pays and the Lender receives. FOLK2FOLK elects to charge an annual administration fee of 1% + VAT for its ISA product. This fee will apply to all ISA accounts and will be capped to amounts up to £100,000 of any ISA total per tax year.
The maximum amount a FOLK2FOLK ISA customer will pay for their annual administration fee for amounts above £100,000 will be £1,000 + VAT. All FOLK2FOLK interest rates and fees are designed to be fair and sustainable in the long-term.
Giles Cross (Chief Executive Officer FOLK2FOLK): “FOLK2FOLK provides a competitive ISA offering to consumers and retirees wishing to earn inflation beating returns of 6.5%pa, whilst supporting local and rural businesses. We’ve developed an attractive Lender offering, built on a belief of transparency, decency and fair exchange. Our secured lending platform reports zero losses for Lenders since its launch in 2013. Our attitude to Lender fees, coupled with our asset-backed approach to local lending delivers a tangible, transparent and simple market alternative that’s attractive to consumers looking for inflation busting returns coupled with a low-level of risk.”
Full details of the FOLK2FOLK IFISA are available on the FOLK2FOLK website https://www.folk2folk.com/innovative-finance-isa