RateSetter ISA - the countdown begins
In October, we announced that, having secured full regulatory authorisation from the FCA, we intend to launch our Innovative Finance ISA in good time for the end of the current tax year.
We’d like to thank all of our lenders who have waited as we prepare the ISA and ensure that it’s the best product it can be. The good news is that our preparations are progressing well, and we now expect to launch the RateSetter ISA in February 2018.
As a reward to our loyal customers, the RateSetter ISA will exclusively be available to existing RateSetter lenders for an initial two week period.
Once the ISA launches, you will have until 5 April 2018 (the end of the current tax year) to invest the 2017-18 ISA allowance - £20,000 in your RateSetter ISA. Please note that this figure will be lower if you have already used part of your tax free allowance in another ISA.
Investing through in the RateSetter ISA will work just like the RateSetter Everyday Account – you’ll be able to lend in the Rolling, 1 Year and 5 Year markets, with the key difference that all the interest you earn will be completely free of tax.
When the ISA launches, you will see the option to set up an ISA when you log into your RateSetter account, and should you choose to set one up, you’ll then be able to manage both your ISA and Everyday accounts using the same login.
As with all types of ISA, investment limits apply. The current limit is £20,000 each year, which you can invest in stocks and share ISAs, cash ISAs and of course the RateSetter ISA.
One other thing: from 6 April 2018, we will accept transfers of ISAs, which means that customers with cash ISAs, stocks and shares ISAs and other Innovative Finance ISAs will be able to transfer funds from these accounts into the RateSetter ISA while retaining the benefit of the tax-free wrapper.
Do I need to do anything now?
No – we’ll continue to provide you with updates, and we’ll contact you directly when the RateSetter ISA is ready for investment.