easyMoney (easyJet) 4% ISA

aj23_2

Looks good but sounds too good to be true. I read something saying only to put up to to 10% of your money into it, which makes it sound like it's not that great to go with in case it goes wrong?

cloud_dog

aj23 wrote: »

Looks good but sounds too good to be true. I read something saying only to put up to to 10% of your money into it, which makes it sound like it's not that great to go with in case it goes wrong?

It is, what it is.

It is an innovative ISA, i.e. it is a peer-to-peer lending ISA account.

So, define your understanding of too good to be true and an answer can be provided.

EDIT: With the risks associated with it I'm not sure 4% is a sufficient enough return for the risk.

aj23_2

cloud_dog wrote: »

It is, what it is.

It is an innovative ISA, i.e. it is a peer-to-peer lending ISA account.

So, define your understanding of too good to be true and an answer can be provided.

EDIT: With the risks associated with it I'm not sure 4% is a sufficient enough return for the risk.

I'm not sure I'd want to get involved with peer to peer lending. Looks like Stelios is going down the banking route.

cloud_dog

aj23 wrote: »

I'm not sure I'd want to get involved with peer to peer lending. Looks like Stelios is going down the banking route.

No, I think, as with everything Stelios, he sees an opportunity to make money by trading on the 'EasyXXX' well known name, offer people a reasonable return (in isolation of risk), whilst knowing he will get a nice chunk of the expected return by using other people's money.

Alexland

We discussed this in the ISA forum a few days ago

https://forums.moneysavingexpert.com/discussion/5800329

Thrugelmir

cloud_dog wrote: »

No, I think, as with everything Stelios, he sees an opportunity to make money by trading on the 'EasyXXX' well known name, offer people a reasonable return (in isolation of risk), whilst knowing he will get a nice chunk of the expected return by using other people's money.

Much in the sameway that Branson marketed the now much tarnished Virgin brand. Over time it dilutes in value.

4% is little reward for the risks involved. While at least 4% goes to the people behind the operation that ultimately will stump up none of their own money for this venture.