We're fully regulated by the Financial Conduct Authority (FCA). But remember, this investment is not protected by the Financial Services Compensation Scheme
What you need to know
What is an Individual Savings Account (ISA)?
An ISA allows you to earn tax-free returns on savings or investments. Each tax year you can put up to £20,000 into an ISA and any interest you earn on that is tax-free.
What is an Innovative Finance ISA (IFISA)?
This is simply another type of ISA. It includes all the same tax benefits, but your money is invested in peer-to-peer loans.
Why invest in Zopa’s IFISA?
Our IFISA works just like our standard peer-to-peer investments, but with the added bonus of the tax-free wrapper. Our target returns of up to 5.2% mean we’re nestled in the sweet spot between low-risk, low-return cash ISAs and the wild volatility of stocks and shares. What’s more, we don’t offer juicy introductory rates only to drop them later, so you can earn healthy returns year after year.
Who you invest in
Our IFISA invests in exactly the same type of personal loans as our standard peer-to-peer investments, the only difference is that returns are tax-free.
The people you’ll lend to come in all shapes and sizes, but we run checks on every single one. We only approve about 20% of those who apply for a loan with us†. Everyone that we do approve is categorised from A*, the most reliable, to E, and given a personalised interest rate according to their risk assessment.
† Based on applications via ClearScore May 2018 – May 2019, representative of Zopa’s borrower approval rates
How investing with Zopa works
- Zopa splits your investment into small chunks. These are then put into a queue to be matched with different loans
- We’ll work out how to distribute your investment so you’re set up match your target return.
- You’ll receive monthly repayments, including interest but minus our loan servicing fee
- Some loans default. We factor this in when calculating target returns
- By letting us reinvest your repayments as they come in, you can earn interest on interest
IFISA investment tailored to your appetite
Just like our standard peer-to-peer investment, we offer two IFISA options, Core and Plus.
- ISA Core and ISA Plus contain A*, A, B and C borrowers
- ISA Plus adds higher risk D and E loans into the mix
- Both allow you to enjoy tax-free returns on your peer-to-peer investment
A*, A, B & C
A*, A, B, C, D & ETypically, D and E loans are limited to 20% of your personal mix
No fixed termBest results over the mid to long-term, but you can choose to access your money early by selling loans you have invested in. This process depends on demand from other investors to buy your loans so can take several days. A 1% sale fee applies.
Not protectedYour capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS) when you invest.
How to fund your Zopa IFISA
- You can simply pay in directly from your bank, up to the £20,000 allowance
- If you’ve already got an ISA, you can transfer into ours from both previous and current year ISAs. This won't use up any more of your yearly tax-free allowance. Learn more about transferring in from other providers
- If you already invest in our standard product, you can transfer uninvested funds into IFISA, or you could reinvest your standard repayments into IFISA
What else do you need to know?
Up next: Proof
Take a look at how we've performed in the past and the contingency plans we have put in place to make sure your money is in safe hands.
Your capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS). Fees may apply. Tax treatment depends on your circumstances and may be subject to change in the future.