Uswitch welcomes new peer-to-peer lending ISA
Commenting on the government consultation on a new peer-to-peer lending ISA, David Mann, Head of Money at Uswitch.com, says: “With interest rates at an all-time low, it’s a challenging time for savers, and any move that gives them more options for investing their money should be welcomed.
“But, while the lure of high interest rates may be appealing to some, this new ISA is a riskier option for consumers. Unlike bank deposits in Cash ISAs, the proposed new ISA will not be protected by the Financial Services Compensation Scheme. Many will want more reassurance that their hard earned cash will be safe and working for them. Our research shows that over eight in ten are still wary of investing their money with a peer-to-peer lender as they don’t understand how they work, even though they have been regulated by the FCA since April.
“Giving people more ways to save their money tax-free is great news. But as with any new product, more needs to be done to build trust. With many current accounts now offering record interest rates, cash incentives and other rewards, we could see savers turning to more traditional options to invest their money.”
FOR MORE INFORMATION
Charlotte Nunes
Phone: 020 7148 4664
Email: charlotte.nunes@uswitch.com
Twitter: @uswitchPR
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