Representative Example: On an assumed loan amount of £750 over 12 months. Rate of interest 191.2% (fixed). Total repayment amount £1726.68 and total interest is £976.68. 12 monthly payments of £143.89. My Financial Broker is a broker, not a lender*.
* As a broker, we are unable to ascertain exactly how many customers take out a loan or the lender’s rate of interest particular to that customer, therefore our calculation is based on the mean APR of our panel of lenders.
We understand that not everyone is looking to borrow large amounts, but it’s handy to have a little extra help when you receive an unexpected bill or your car breaks down – especially if there are a few weeks till payday. With a loan from My Financial Broker, you can borrow as little as £100.
You can earn money each year through alternative investments such as Innovative Finance ISAs and peer to peer investments. With a range of savings products available, you can maximise your savings and receive added benefits such as cashback and cash bonuses.
The highest returns are available when you make the largest contributions such as £500 or £1,000 and ideally keep your money locked in for the entire loan term. There are tax-free options available, allowing you to use your £20,000 ISA allowance to its fullest.
Use a comparison table to compare alternative investment deals and click on your favourite deal – start earning today!
- Earn a high AER
- Tax-free ISAs for up to £20,000
- Start saving with an investment of just £100
- Protected by the FSCS
- Lock in money for best returns
Types of Alternatives Investments
Cash ISA: This is where you have ‘easy access,’ to withdraw money as you please – but you may get a lower return for this convenience. Putting money into a Cash ISA is rather like putting your savings into a traditional bank or building society savings account, except with a Cash ISA, you don’t pay tax on the money you deposit.
Fixed Rate ISA: Your earnings are fixed at a rate, such as 1.7% AER, and you are charged a penalty if you want to withdraw money at any point. Generally, a Fixed Rate ISA is for one to five years, though some providers may offer greater flexibility. The interest rate will typically depend on the length of your term.
Innovative Finance ISA: An IF ISA works by lending your money to borrowers in return for a set amount of interest. The calculations are based on how long you’re prepared to leave your money untouched for. You’re allowed to pay your full ISA allowance into your innovative ISA, if you choose to. For the 2020/21 tax year, the ISA allowance is £20,000 in. The tax year runs from 6th April to the 5th April.
You can invest in peer to peer investments and earn a high percentage per annum, with tax-free earnings, using your £20,000 ISA allowance. Essentially, you can directly lend to borrowers, whether they be individuals or businesses, and earn a return on your investment. There are risks associated with this type of investment and you should consider them all carefully before you make any decision.
Peer to Peer Investments: Invest in other borrowers looking for personal or business loans using a peer to peer lender or portal. This is not tax-free and you will need to declare any earnings on your self-assessment form. The riskier the borrower, the higher the return.
Why Use Alternative Investments?
With banks offering very low rates – around 1% or 2% – more and more consumers in the UK are looking for alternative investments where they can maximise their hard-earned savings.
You can make the most of your ISA allowance of £20,000 because this means that any earnings up to this point are tax-free – so you can truly earn as much as possible.
There are also added incentives, with some providers offering cashback or bonuses if you deposit a certain amount or refer a friend.
You are also protected through the Financial Services Compensation Scheme for up to £85,000, so even if the bank or provider goes bust, you can still reclaim your earnings.
Is My Investment Protected?
No, Innovative Finance ISAs are not protected by the FSCS, however, all other ISAs are protected by the FSCS so you will always be able to recover your savings even if the company or bank goes under.
For peer to peer investments, you are not covered by the FSCS but every lender will have their own compensation scheme. But be aware that this could be capped at a certain limit and may not provide the full amount.
Are There Investments Which Are Tax-Free?
Yes, all ISAs are tax-free, using your allowance of up to £20,000. You can only invest in one ISA per year, but you can invest in other things like stocks and shares and peer to peer investments at the same time. ISAs are portable and transferrable, so the amount you invest can be easily moved elsewhere.
How To Compare Alternative Investments
It’s easy to find a list of the best alternative investments which allow you to open an account with an investment of just £100. Though the highest returns may require you to deposit much more.
One of the best ways to compare investment options is through a comparison site. Go Compare offer a great comparison service when it comes to investments, as well as lots of helpful information for you to read. If you’re thinking of investing via a bank or building society, you can also contact them directly to discuss your options.
When you compare investments, consider whether you need to access your money easily or if you would prefer to have your money locked in to earn a greater return. You also need to consider any risks associated with the investment.
Find the best investment for you, then simply click on the deal and you will be able to open an account online. And best of all, you can start saving immediately.Apply Now