# Innovative crowdfunding business launches added incentive for investors Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-04-03 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Earn Tax Free Returns with Crowd for Angels' IF-ISA Meta Description: Earn up to 9% per annum through secure bonds, offering higher returns than traditional Cash ISAs. Invest in UK companies and diversify your portfolio tax-free. Tags: featured Tag URLs: featured (https://financedigest.com/tag/featured) URL: https://financedigest.com/innovative-crowdfunding-business-launches-added-incentive-for-investorshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/810-6241-1120-1736844012550-compressed.jpg) The IF-ISA (Innovative Finance Individual Savings Account) is a new category of ISA, which launched in 2016. UK crowdfunding experts Crowd for Angels has announced that a 2% Annual Equivalent Rate (AER) is to be calculated on any IF-ISA balances from the date of opening until 15 June 2017. The interest payment (which does not qualify for a tax exempt status under ISA rules) will be paid into a client’s IF-ISA as a single payment within three working days of the June deadline. The IF-ISA joins the better-known cash and [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") and shares ISAs, enabling clients to invest their money into crowdfunded debt securities and earn tax free returns. Crowd for Angels has designed its ‘Crowd Bonds’ for this purpose. Crowd Bonds are debt securities which allow [investors to lend money to UK companies](https://www.financedigest.com/shipping-companies-feel-the-heat-as-investors-shun-coal.html "Shipping companies feel the heat as investors shun coal"). They are secured against the borrowing company’s assets and provide a regular flow of [income which can help in your financial planning](https://www.financedigest.com/financial-planning-for-freelancers-managing-irregular-income.html "Financial planning for freelancers: managing irregular income"). Because Crowd Bonds can be included within in the IF-ISA “wrapper”, investors can also look forward to tax free returns. Crowd for Angels Crowd Bonds are crowdfunded bonds that can be invested through an IF-ISA, which can be set up alongside cash and [stocks and shares](https://www.financedigest.com/energy-stocks-boost-european-shares-ahead-of-ecb-minutes.html "Energy stocks boost European shares ahead of ECB minutes") ISAs to get tax free returns. All Crowd for Angels’ Crowd Bonds are secure and can pay up to 9% per annum and Crowd for Angels’ IF-ISA enables [investors to select and lend money on secured terms directly to UK companies seeking](https://www.financedigest.com/anti-static-foam-packaging-market-booming-segments-investors-seeking-growth-2030.html "Anti-static Foam Packaging Market Booming Segments; Investors Seeking Growth 2030") funds to expand, diversify or develop their businesses. Companies then access the funds they need, while investors have the potential to [earn higher](https://www.financedigest.com/italian-hearing-aid-maker-amplifon-expects-higher-2023-earnings.html "Italian hearing aid maker Amplifon expects higher 2023 earnings") rates of interest than they could on bank deposits or cash ISAs – all without paying tax. Investing in debt pitches/Crowd Bonds through Crowd for Angels (UK) [Limited involves lending to companies – and therefore capital is at risk](https://www.financedigest.com/omicron-poses-very-high-risk-but-data-on-severity-limited.html "Omicron poses ‘very high’ risk but data on severity limited") and interest payments are not guaranteed if the borrower defaults. [Investments made in companies listed on the Crowd for Angels platform are not covered by the Financial Services Compensation Scheme](https://www.financedigest.com/unregulated-investment-schemes-remain-a-threat-to-investors.html "Unregulated Investment Schemes Remain a Threat to Investors") (FSCS). Clients can [invest](https://www.financedigest.com/the-10-year-model-and-beyond-why-you-should-take-a-long-term-outlook-to-investment-strategy.html "The 10-year model and beyond – why you should take a long-term outlook to investment strategy") part or all their ISA allowance into an IF-ISA each year and can also transfer in any existing ISA funds from previous years. The Crowd for Angels’ ISA is free to open, available online 24/7 and [offering a choice of UK companies](https://www.financedigest.com/passendo-partners-with-leading-media-company-audienzz-to-revolutionise-its-ad-offer-in-a-portfolio-of-over-70-premium-newsletters.html "Passendo partners with leading media company, audienzz, to revolutionise its ad offer in a portfolio of over 70 premium newsletters") to lend to.  It takes less than five [minutes to open](https://www.financedigest.com/one-minute-to-midnight-says-johnson-as-climate-conference-opens.html "“One minute to midnight” says Johnson as climate conference opens"). Crowd for Angels CEO, Tony De Nazareth, comments: “With interest rates on Cash ISAs currently at an [all-time low](https://www.financedigest.com/sterling-plunges-to-all-time-low-in-scathing-appraisal-of-fiscal-plan.html "Sterling plunges to all-time low in scathing appraisal of fiscal plan"), we expect to see high demand for our Crowd Bonds. [Investors willing to take on extra risk by lending to companies have the opportunity of making tax free returns of up to 9% per annum on our asset backed](https://www.financedigest.com/exclusive-new-investor-backs-bt-says-fibre-jv-may-not-be-needed-source.html "Exclusive-New investor backs BT, says fibre JV may not be needed – source") bonds, which compares to an average interest rate of just 0.64% on a Cash ISA.” [Tax treatment of ISAs is subject to change](https://www.financedigest.com/rd-tax-important-exemptions-and-upcoming-changes-for-the-it-software-industry.html "R&D Tax: Important Exemptions and Upcoming Changes for the IT & Software Industry") and dependent on individual circumstances. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---