New and existing Octopus clients can now transfer all or some of their Isa investments into the Octopus Choice Isa, which aims to return a tax-free variable interest rate of around 4% per year by investing in loans secured against bricks and mortar.
“Allowing transfers into the Octopus Choice Isa presents a new opportunity for investors to access the potential for inflation-beating returns, without further exposing their Isa to [the] stock market volatility that so many are wary of,” said Sam Handfield-Jones, head of Octopus Choice (pictured above).
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“As part of a diversified portfolio, it aims to operate in this sweet spot by targeting an attractive rate of regular interest, by investing in asset-backed loans.”
The Octopus Choice Isa allows investors to transfer money in and out with no fees, and there’s no minimum or maximum transfer limits, but there may be exit charges administered by other Isa providers.
Since the launch of Octopus Choice – the P2P lending product distributed by Octopus Investments – more than £110m has been invested and it recently won the Moneyfacts ‘Innovation Award’.
Sam added: “We’ve already seen strong demand from financial advisers and their clients for the product and we’re encouraged that for many this will mean gaining access to an Isa that works harder for them.”
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