Weekly News Bulletin - 18/04/2022

TAX FREE SAVINGS 

Are innovative finance Isas worth the risks?

IFISAs have their roots in the fallout from the 2008 financial crisis and credit crunch. At that time, it became harder for individuals and businesses to borrow from banks and other traditional lenders, at the same time as savers were frustrated by rock-bottom interest rates on their bank accounts. P2P lenders emerged as attractive alternatives to fill that void. They cut out the banking middlemen, acting directly as financial matchmakers between people with cash to lend and personal or corporate borrowers. Most P2P lenders focus on property. Ben Yearsley, investment director at Shore Financial Planning who is personally an Ifisa investor, explains: “It provides investors with a degree of comfort and asset backing, assuming of course, that there is a first charge over the property lent against.” Because there’s no bank involved you probably earn a notably higher rate of interest on your money than you would from an ordinary cash savings account. To put that into context: top two-year fixed-term savings rates from conventional banks were around 2 per cent as of early April, according to comparison website MoneySavingExpert. Not all Ifisas are fixed term products. For example, easyMoney offers a range of swift access accounts focused on property investments with interest rates between 3 per cent and 5 per cent, depending on the amount you have to invest. Investors Chronicle

SAVINGS

10 ways to save money when booking a dream holiday according to experts

1. Always book your accommodation before your flight for the biggest saving. 2. Try and book your flights 56 days before you wish to travel for the best deal. 3. Discover which airlines offer free luggage upgrades with this feature. It’s definitely worth booking all of your flights via Google Flights as they let you search with a ‘carry-on bag’ option ticked – showing you the true price of a ticket. 4. Choose an Airbnb with a washing machine to cut down additional luggage costs. 5. Wanting to book a cruise? Always book it on a Thursday. 6. Wanting to book a package holiday? Always book it on a Monday. 7. Never book a holiday without estimating the cost of airport transfers. 8. Always clear your cookies before booking a holiday to save sneaky charges. 9. Pay for your holiday with a credit card to financially cover any misfortunes. 10. Always buy these travel necessities from pound shops - Travel accessories and toiletries. Edinburgh Live

PENSIONS

Pension alert: Britons urged to use ‘sensible’ option to manage tax in retirement

Express.co.uk spoke to Amy Goodall-Smith, director at Goodall-Smith Wealth Management. She provided insight into tax planning moves Britons can take in order to amply prepare for retirement. Ms Goodall-Smith said: “When you take your pension you do pay tax on the income your receive, like you do a salary. “However, the benefit of the tax relief you get when you pay into a pension makes this still a sensible proposition. It will most likely be the case individuals are a lower rate taxpayer in retirement. As a result, many will be getting better tax relief now when paying into a pension, compared with later on in their life. Tax relief is a huge incentive for pension saving and can be a good way to forward plan. As such, making preparations now, ahead of retirement, can end up as a win-win situation. “In addition to this, you don’t just have to use pensions to create an income. “You can also use other investments.” The expert pointed towards ISAs, for instance, as a potential savings vehicle for retirement. Daily Express

PROPERTY

UK asking rents jump to record £1,088 a month

The average price a rental property is put on the market for outside of the capital has hit a new record high as tenant demand outweighs available properties, resulting in the most competitive rental market ever recorded. New data from Rightmove's (RMV.L) quarterly Rental Trends Tracker reveals asking rents outside of London rose to £1,088 per calendar month (pmc), up from £982. The 10.8% rise in asking rents marks the first time annual growth topped 10% across nine regions. Rents in London also hit a new record of £2,193 pcm, increasing by 14.3% in a year from £1,919, the largest annual jump of any region that Rightmove has recorded. Tenant demand was up by 6% across Britain and the number of available rental properties is 50% lower than this time a year ago. Yahoo News

All the facts and figures presented are accurate at the time of posting.

easyMoney is not a cash savings account. You may not get back the full amount you put in. Your capital is at risk if you invest. Peer-to-peer investments are eligible for an Innovative Finance ISA which is not a Cash ISA. They are not protected by the Financial Services Compensation Scheme (FSCS). Money invested through easyMoney is concentrated in property and could be affected by market conditions. For the same reason, instant access cannot be guaranteed. We do not offer investment or tax advice.

easyMoney is the trading name of E-money Capital Ltd, a company incorporated in England & Wales. Registered office is 5 Fleet Place, London, England, EC4M 7RD (Company No. 04861007). E-money Capital Ltd is authorised and regulated by the Financial Conduct Authority (FCA) #231680.