LendingCrowd expands product range with Income Account

LendingCrowd has launched a new account that lets investors take an income from the interest earned on their loan portfolios without eating into their capital.

The platform’s Income Account, which has a target return of 5.6%, is designed for investors – such as those in retirement – who are seeking to generate a consistent level of income from a lump sum of at least £1k.

It works in a similar way to LendingCrowd’s existing Growth Account, with investments automatically spread across all the loans available on its innovative platform. The key difference is that interest payments are transferred to a separate account for investors to withdraw – with no fees – while their capital repayments are automatically reinvested.

The Income Account can also be held within an Innovative Finance ISA (IFISA), offering tax-free returns.

Stuart Lunn, CEO and co-founder of LendingCrowd, said:

“Since the successful launch of our passive Growth Account in February 2017, we have seen significant growth in our number of new investors. Many of them have asked for an income product and we are pleased that, due to our technology expertise, we have been able to respond to this demand by building out this functionality.

“We continue to see investors willing to take additional risk with their cash savings to generate inflation-beating returns. Much of this is being driven by the IFISA, and we expect to see continued strong growth in LendingCrowd investors, underpinned by our expanded product range.”