• According to research* from leading peer-to-peer lender, Relendex which specialises in the UK property market, just 8% of UK adults are aware of Innovative Finance ISAs (IFISA) meaning that many UK adults are missing out on making significant returns.

• In the financial year 2017-2018 only 31,000 savers opened an IFISA compared to the 2.8m individuals who opened a stocks and shares ISA and the 7.7m savers that put money into a new Cash ISA.** Savvy investors that opted for an IFISA would have seen the best rates of return on their investments.

Over the last 12 months those with portfolio/bond style IFISAs have earned around 5.75% on their money. In contrast, stocks and shares ISAs experienced a significant period of volatility as world markets fell and those with Cash ISAs earned an average of just 0.7% from High Street Banks.This meant that savers with the UK average £17,000*** saved in a Cash ISA would have earn just £119**** compared to an average return of £977 for the same money invested in an IFISA. A tax-free difference of £858.

The research also showed that men (10%) are more likely to have heard of IFISAs than women (6%). Worryingly, this is not much more than the 5% of UK adults who said that say they have heard of a “Drawdown Options ISA” despite no such product existing.

Paul Sonabend, Executive Director at Relendex, commented: “If savers are to get the best returns, we need to start with financial education, so that people are aware of the tax efficient investment options open to them.  This survey highlights that only a small number of people have heard of IFISAs, only slightly more than those who have heard of the non-existent “Drawdown ISA”.

“In the last year, given stock market fluctuations and the consistently low returns offered by Cash ISA providers, early adopters of IFISAs have been the winners. Savers who properly research their options can quickly find an IFISA, with an FCA regulated provider that makes consistent returns on assets that are secured. Risk adverse savers should look for bond or secured portfolio type products with a stated target rate of return, like the Relendex Secured Portfolio, but avoid the potential higher returns on the self-select option which is one for the more sophisticated investor”.

*The research was conducted by Opinium Research amongst 2,000 UK adults (aged 18+) in January 2019

**Individual Savings Account (ISA) Statistics, August 2018 P21

***Total amount within Cash ISAs (£270bn) divided by total number of subscribers (15.9m) [£270,850,000,000 / 15,900,000 = 17,034] rounded to the nearest thousand.

**** Returns on ISA returns: £17,000 x [Cash ISA 0.7% =£119] [IFISA 5.75% = £977]