Inflation is predicted to reach eight per cent in April, hitting savers and investors who are struggling to find inflation-beating returns from mainstream providers.
But look no further than Innovative Finance ISAs (IFISAs), which have consistently outperformed the stock market over the past four years, and some of which can even beat the dreaded eight per cent figure.
So Peer2Peer Finance News has put together a list of the IFISA providers that aim to offer inflation-beating returns this year.
This list is made up of providers that specially target eight per cent or more in returns. This list does not include those platforms that offer a range of target returns, where the lower value is less than eight per cent. For instance, this includes those who are targeting returns of between five to 12 per cent, or those that offer targets “up to” a certain figure like 10 per cent.
The platforms that may offer investors the chance to achieve eight per cent or more in returns but do not meet this criteria include Abundance, ArchOver, CrowdProperty, Crowd2Fund, Crowdstacker, JustUs, Fund Ourselves, HNW Lending, LandlordInvest, Unbolted, Proplend, Share Credit, Shojin Property Partners and Tifosy.
Here Peer2Peer Finance News lists the IFISA providers that specifically target returns of more than eight per cent.
Peer-to-peer lending platform Ablrate targets returns between nine and 15 per cent this year.
The platform delivered an average interest rate of 13.4 per cent in 2021.
The P2P property lending platform is targeting an eight per cent average return for lenders this year.
Simple Crowdfunding resumed P2P lending in March, with changes to its business model and a live project for housebuilder Acorn Property Group on its website.
Lendwise is a new addition to the IFISA family, having launched its IFISA in January this year.
Lenders can invest in the platform’s education loans, which are primarily used by post-graduate students seeking a fixed rate loan to fund their studies. The platform is already aiming for nine per cent returns this year on average.
Rockpool Investments aims for average returns of eight to 10 per cent per annum.
The firm focuses on profitable and growing companies that are still under the radar of mainstream private equity funds. Lenders can invest in the IFISA to build a portfolio of private company loans.
Shojin Property Partners
Shojin Property Partners is targeting 10 to 15 per cent in average returns this year.
Last year, the P2P property platform delivered an average annual return of 12 per cent to its investors.
Sourced Capital is targeting 10 per cent returns in 2022, after delivering 11.92 per cent last year on average.