Compare Peer-To-Peer ISA Deals
Best Peer To Peer ISAs
Why we like it: TAX-FREE income if held through an Innovative Finance ISA. Minimum investment of £10,000. Interest paid monthly. No fixed term, hold for as long as you wish. Secured by UK property. Maximum 75% loan to value. Buffer of 25% should the value of a property fall. Ask to withdraw at any time. Also accepts ISA transfers from previous year's ISA's. Track your investment with online app. Can also be held outside of an ISA As with all investing your capital is at risk when you lend to businesses. easyMoney reduces this risk by taking security over property. Returns are not guaranteed and your actual returns may vary. Capital is at risk. Must be aged 18 or older. Peer to peer lending is not covered by the FSCS. Tax treatment depends on individual circumstances. Instant access not guaranteed
Disclaimer: When making a peer to peer loan, your capital lent to a borrower is not covered in the event of loss by the FSCS
Why we like it: TAX-FREE income if held through an Innovative Finance ISA. Minimum investment of £20,000. Interest paid monthly. No fixed term, hold for as long as you wish. Secured by UK property. Maximum 75% loan to value. Buffer of 25% should the value of a property fall. Ask to withdraw at any time. Also accepts ISA transfers from previous year's ISA's. Track your investment with online app. Can also be held outside of an ISA As with all investing your capital is at risk when you lend to businesses. easyMoney reduces this risk by taking security over property. Returns are not guaranteed and your actual returns may vary. Capital is at risk. Must be aged 18 or older. Peer to peer lending is not covered by the FSCS. Tax treatment depends on individual circumstances. Instant access not guaranteed
Disclaimer: When making a peer to peer loan, your capital lent to a borrower is not covered in the event of loss by the FSCS
Why we like it: TAX-FREE income if held through an Innovative Finance ISA. Minimum investment of £100,000. Interest paid monthly. No fixed term, hold for as long as you wish. Secured by UK property. Maximum 75% loan to value. Buffer of 25% should the value of a property fall. Ask to withdraw at any time. Also accepts ISA transfers from previous year's ISA's. Track your investment with online app. Can also be held outside of an ISA As with all investing your capital is at risk when you lend to businesses. easyMoney reduces this risk by taking security over property. Returns are not guaranteed and your actual returns may vary. Capital is at risk. Must be aged 18 or older. Peer to peer lending is not covered by the FSCS. Tax treatment depends on individual circumstances. Instant access not guaranteed
Disclaimer: When making a peer to peer loan, your capital lent to a borrower is not covered in the event of loss by the FSCS
What is a peer-to-peer ISA?
Peer-to-peer-ISA (or P2P ISA) is another name for an Innovative Finance ISA. These have become increasingly popular with UK savers since they were introduced in April 2016. Innovative Finance ISAs allow UK taxpayers to get the standard tax benefits of an ISA when investing through peer-to-peer lending platforms.
Innovative Finance ISAs help to bring the idea of tax-free savings right up-to-date, as P2P lending and borrowing is a growing sector within the UK finance industry. This type of savings can offer a number of advantages to savers, alongside the normal tax advantages of an ISA.
How Innovative Finance ISAs work
Like any standard ISA, an Innovative Finance ISA (IFISA) allows you to save money each year without paying tax on the interest you earn. The amount you can save is set by the UK government and normally changes with each new tax year. For the 2018/19 tax year, the ISA allowance is £20,000.
IFISAs allow you to place some or all of your ISA allowance into an FCA-regulated peer-to-peer lending platform. This is an attractive option for many, as P2P lending often delivers higher returns than other types of savings, including Cash ISAs.
Peer-to-peer lending allows savers to lend direct to borrowers through a dedicated lending network. This cuts out the “middleman” i.e. the bank or other institution you might normally save with, so there is nobody else taking a cut. This means you get a higher interest rate and the borrower can get a lower one.
It is important to bear in mind, however, that by lending through a peer-to-peer network you are putting your capital at risk. Unlike with a Cash ISA, your deposit is not protected by the Financial Services Compensation Scheme (FSCS).
P2P ISA interest rates
If you choose to save with a peer-to-peer ISA, you can generally select the level of interest you wish to see and then it is up to borrowers whether they wish to borrow at that level. This gives you a lot more control over what level of interest you earn.
Interest rates vary between P2P lending platforms, so it is a good idea to shop around and see which are currently offering the best rates. P2P ISAs tend to offer better interest rates than Cash ISAs and are often competitive with Stocks and Shares ISAs.
Find the best rates on peer-to-peer ISAs
There are a number of different peer-to-peer lenders now offering Innovative Finance ISAs to UK taxpayers, so finding the best one for your savings can be a difficult choice. We offer a quick, simple way to compare the various options and see which is right for you.
Using the peer-to-peer ISA comparison tool at the top of this page, you can find the best deals currently available on P2P ISAs. We keep this updated with all the top peer-to-peer ISA products we have selected from across the market, making it fast and easy for you to find the best deal possible.
