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Compare Peer To Peer ISA Deals

Crowd2Fund
Peer to Peer ISA Crowd2Fund
Min deposit £10
Term 1 - 5 Years
Annual Interest Up to 8.70%

Why we like it:  Crowd2Fund’s Finance ISA is designed to make it easier for savers to invest while managing a diversified portfolio. You can transfer existing ISAs (Crowd2Fund will help you do this) and earn an estimated 8.7% APR* return tax free.

Disclaimer: When making a peer to business loan, your capital lent to a borrower is not covered in the event of loss by the FSCS

Lending Crowd
Peer to Peer Growth ISA Lending Crowd
Min deposit £1000
Term No Fixed Term
Annual Interest Target rate 6.00%

Why we like it: Christmas Offer: A festive pack of Pickering’s 'Gin Baubles' will be given away to the first 200 investors who invest at least £2,000 on the platform by 15 December 2017. Cashback offer: £200 cashback for any investments over £5,000. Open to new and existing customers. Ends 2nd January 2018. Innovative Finance ISAs (IFISA) are the new way to invest tax-free. Just like Cash and Stocks & Shares ISAs, you can invest up to £20,000 each tax year, and you don’t need to pay any personal taxes on your earnings. Lending Crowd will automatically diversify your funds across at least 20 loans through their Loan Market, with no more than 5% of your funds invested in any one loan. All repayments will be automatically reinvested.

Disclaimer: When making a peer to business loan, your capital lent to a borrower is not covered in the event of loss by the FSCS

Landbay
Peer to Peer ISA Landbay
Min deposit £5000
Term 1 - 5 Years
Annual Interest Up to 3.75%

Why we like it: The Property-Backed ISA is the latest in Landbay's peer-to-peer investments following the introduction of the Innovative Finance ISA from HM Treasury in 2016. A Landbay ISA investment is the same as a Classic investment with a tax-free wrapper

Disclaimer: When making a peer to business 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 saving right up-to-date as peer-to-peer lending and borrowing is a growing sector within the UK finance industry. This type of saving 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 2017/18 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 saving, 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 tax payers, 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 is fast and easy for you to find the best deal possible.

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