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Innovative Finance ISA

Smart investments, tax-free returns

  • Generate projected returns between 3.4 - 6.0%
  • Tax-free up to £20,000
  • Easy transfer in from existing ISAs

Your capital is at risk, fees apply when selling loans. Tax treatment depends on your circumstances and may be subject to change in the future.

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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 projected returns between 3.4 - 6.0% 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.

About Zopa


The world’s first peer-to-peer platform

15 years

of personal loan investment expertise

£5 billion

in personal loans lent to over 470,000 UK consumers

£280 million

interest generated for over 60,000 active investors

* Numbers as of June 2019

Understand Zopa in under 90 seconds

We bring borrowers and investors together

Start off from as little as £1,000 and we’ll split your money across a unique selection of loans to reduce risk and help you reach your target return.

Feel good knowing your investment will help people across the UK with everything from unsecured loans for home improvements to secured car finance for new wheels to get to work.

We find people in the UK that want to take out a loan for a maximum amount of £25,000. Drawing on our wealth of lending experience, we assess their risk and calculate a fixed interest rate for a period of up to five years.

Then, we match them with people like you – people who want to earn a good return while helping others achieve their goals.

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 to perform within the projected return range


You’ll receive monthly repayments, including interest but minus our borrower servicing fee.


Some loans default. We factor this in when calculating projected returns.


By letting us reinvest your repayments as they come in, you can earn interest on interest.

Who you invest in

Our borrowers come in all shapes and sizes, but we run checks on every single one. Here’s a snapshot of what they look like.

*average January 2018 – April 2019

Icon of the pound symbol, used to reflect that Zopa borrowers have a track record of repaying debt

Can demonstrate a good track record of repaying debt

Icon of the union flag, as all Zopa borrowers must be current UK residents

Are current UK residents

Icon of a house, used to reflect that Zopa borrowers must have three years of UK address history

Have at least three years of UK address history

Icon that shows 40 years of age, as this is the average age of a Zopa investor

Average age of 40 years old*

Icon that shows a pound symbol above a graph line, used to reflect that Zopa borrower's over average earn £40,000 a year

Average income of £40,000*

How we manage the risks

Your investment will be spread across many different loans. This reduces your risk as no one person is lent more than 1% of your initial investment.

We know that sometimes repayments may be missed. That’s why we factor this into your projected returns and have an experienced Collections team based in London who help to get things back on track. The vast majority of our borrowers who miss a payment will go on to fully repay their loan.

If four months of repayments are missed on an unsecured personal loan, we default it and you’ll lose the value of that loan from your investment. But even after a default, we continue to try and make recoveries on your behalf. Secured car finance loans default after three months of missed repayments. As the loan is secured, we can repossess the vehicle and then sell it in order to recover as much of your investment as possible.

Finally, our business is robust, but we also make sure your loans are taken care of if Zopa were to go out of business. Find out more on our contingency plan page.

Borrower risk profiles

Our borrowers have to meet high standards. We only approve about 20% of people who apply for a loan with us.†

Everyone that we do approve is categorised based on their risk and given an interest rate personalised to them.

Profiles range from A* to E. Our A* borrowers are the most reliable. Profiles beyond E are considered too risky. This process is informed by 15 years of lending data and the latest credit info from three major UK credit bureaus. Lean more on our dedicated who we lend to page.

† Based on applications via ClearScore May 2018 – March 2019, representative of Zopa's borrower approval rates.

We've reacted quickly to the current economic uncertainty, implementing a temporary change to our lending strategy. Find out more
20% of loan applications
80% of loan applications
A* A B C D E
Applicants we view as too risky

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

Your capital is at risk, fees apply when selling loans. Tax treatment depends on your circumstances and may be subject to change in the future.

We've reacted quickly to the current economic uncertainty, implementing a temporary change to our lending strategy. Find out more
Get started

ISA Core

ISA Plus

Projected return range

3.4 - 5.0%We expect 95% of customers to achieve a return of at least 3.4% (after fees and losses) in normal economic conditions.

Projected return range

4.0 - 6.0%We expect 95% of customers to achieve a return of at least 4% (after fees and losses) in normal economic conditions.

Borrower blend

A*, A, B & C

Borrower blend

A*, A, B, C, D & E

Typically, D & E loans are limited to 20% of your personal mix

Minimum initial investment


Minimum initial investment


Available to transfer in


Available to transfer in


Access to funds

No fixed term

Best results over the mid to long-term, but you can choose to withdraw your repayments as they come in, or access your money early by selling loans you have invested in. This process depends on demand from other investors to buy your loans and your loans may be revalued. A 1% sale fee applies.

Zopa Core

Zopa Plus

Icon of a woman with a ponytail

‘Jen’ has achieved annual returns of


The expected return was

Icon of a man

‘Dan’ has achieved annual returns of


The expected return was

That’s the middle investor, here’s a look at the vast majority:

Annual return achieved by 90% of Zopa Core investors

over 2.7%

Annual return achieved by 90% of Zopa Plus investors

over 3.4%

So far, fewer than 1% of our investors have made a loss. Of these investors, the average loss amounts to less than 1% of the money they invested.

Have a look at our middle performing investors

These are our ‘median’ investors, as of April 1st 2019. They’re right in the middle – about 50% of investors have performed better and 50% worse.

How our investments have performed

At Zopa, we aim for our peer-to-peer investments to be nestled in the middle between low-risk, low-yielding savings accounts and volatile, high-return stocks & shares investment.

Our track record of stable, inflation-beating annual returns

Source: Inflation - Office for National Statistics | Savings accounts (IUMB6VJ) – Bank of England | FTSE All-Share – FTSE Russell

Zopa returns are the net annualised return of loans by the year they started.

As an FCA-regulated company with a commitment to transparency, we regularly disclose the historical performance of our investments.

But remember, you can’t predict the future

Our past performance can’t be relied on as an indicator for future results.

You can read about our risk information and Zopa’s public loan book, showing historical performance, is available to download.

Invest with confidence

UK Finance member

Best Personal Loan Provider

Five stars on Trustpilot

4.9 / 5 out of 14,431 reviews

Moneywise Award Logo 2019

Most Trusted P2P Platform

Moneyfacts Award Logo 2019

Best customer service 2018

The different ways to fund your 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

People often ask us

Ready to start investing?

When you invest your money, your capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS). Our risk statement has all the details. Tax treatment depends on your circumstances and may be subject to change.

Peer-to-peer investments are not like other investments, so before you continue make sure you’ve read and understood all of the information above.

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