Which Innovative Finance ISA providers do we work with?
We compare a wide range of Innovative Finance ISA providers in the UK, including:
Maximise your returns from peer-to-peer investments and get up to 12% per annum when you use an innovative finance ISA.
Start by investing just £1, although some investments will require you to put down £500 to £1,000 to access the highest savings return.
Any earnings you make are tax-free, so you can make full use of your £20,000 ISA allowance, and there is no need to declare any returns you make to the HMRC.
Compare the terms from Proper Finance and lend your money to other individuals and businesses in the form of unsecured, secured and business loans.
An innovative finance ISA, otherwise known as an IFISA, allows you to use your (tax-free) ISA allowance while you invest in peer to peer investments.
This is the third kind of ISA available on the market, alongside the stocks and shares ISA and the cash ISA.
An innovative finance ISA works by lending money to borrowers and you then receive a set amount of interest in return. This amount is calculated on the length of time you are willing to leave your money untouched in the innovative finance ISA. You then pay money up to the maximum ISA allowance which is £20,000.
Like peer to peer lending, you can invest in an individual or business (and bid against other potential investors) and they will pay you interest each month, as though it were a normal loan.
You are not backed by the Financial Services Compensation Scheme so you can look at minimising your risk by investing in a pool of people or businesses instead. Each peer to peer lender is still likely to have their own compensation scheme in place, although your investment is still at risk.
Yes, there are potential risks involved. This is because you are lending money to borrowers, and that opens up the possible risk of defaulting on repayments.
Whilst a number of companies who offer innovative finance ISA have a reserve or backup fund set up in order to alleviate risk, it is important to bear in mind that the fund may not necessarily protect all your money, especially if a large number of borrowers all default on their payments.
We aim to be as approachable as possible for our customers, and will always do our very best to assist you with any and all queries you may have concerning any part of our application process and more.
Our online application only takes minutes to complete, with decisions being made very quickly after this. A member of staff will contact you to help you proceed with the final steps.
Each and every one of the providers we work with are fully checked to ensure their reputability, their trustworthiness, and furthermore their competency in helping to provide you with the financial services you require.
The Proper Finance comparison site is free to use and there are no upfront fees for filling in our online application.
It is only possible for you to pay into one innovative finance ISA every tax year.
Yes, you can transfer these into separate innovative finance ISAs, but remember that it will only be possible to add further funds into one of them during a single tax year.
It will depend on the provider that you have chosen. For example, some companies will let you invest as little as £1 or £10 and others will require you to pay at least £1,000, usually to obtain the highest savings return possible.
No, innovative finance ISAs are not protected by the Financial Services Compensation Scheme (FSCS).
Yes, many companies do have their own scheme that means if a borrower defaults on payments, or the company itself goes bust, your money is protected. However, the amount of money protected could be limited.
The main difference is that with an innovative finance ISA you will not be required to pay tax on the returns made from one.
Yes, you can pay into these too in one tax year, providing that you do not exceed your ISA allowance.
No, your funds are typically locked in for the loan duration, although you can always transfer your loan to another investor if need be.
We work with trusted brokers to give you access to a panel of leading lenders well placed to meet your needs at the lowest rates.
