Our new Zopa ISA is coming soon

What is the Innovative Finance ISA?

The Zopa ISA will be an Innovative Finance ISA (IF-ISA). The IF-ISA is the newest addition to the ISA family, alongside cash and stocks and shares ISAs, which will launch in the 2016/17 tax year. This new product will allow our investors to earn tax-free interest on their peer-to-peer loans which are purchased within a Zopa ISA.

Only platforms with full FCA approval are able to offer IF-ISAs. Zopa is currently working with the FCA to be fully approved and ready to launch ISAs.

How much new money can I invest in an ISA per year?

Your annual tax-free ISA allowance from 6th April 2016 is £15,240. You need to ensure that the total amount of new money you subscribe to an ISA (whether it is cash, stocks and shares, innovative finance, or a combination of the three) does not exceed the annual limit.

How many ISAs can I have?

For your current year’s allowance, you can fund up to three ISAs – one of each type. For example, you could split your annual allowance and invest £5,000 in an ISA with Zopa, while also adding £5000 to a stocks and shares ISA and then the rest in a cash ISA. If you wish to move your ISA from one provider to another of the same type for the new tax year, then you need to transfer the whole amount and close the old ISA.

For previous years’ ISA balances, there is no limit on the number of ISAs that you have. You can transfer all or part of your historic ISA balance to another ISA provider – the important thing to remember is that you should check if there are any penalties or charges imposed by your old ISA provider for doing so. You should also use the ISA transfer process rather than withdrawing directly from your old ISA account, otherwise those funds will lose their tax-free status.

Why choose the Zopa ISA with Zopa?

Here are three great reasons why you should open a Zopa ISA:

1

Great rates...

The predicted return on a Zopa ISA is higher than a typical Cash ISA (which paid on average 1.17% annual interest in January 2016) and is less volatile than stocks and shares. It’s important to remember that in all peer-to-peer investing, your capital is at risk and your investments are not covered by the Financial Services Compensation Scheme. Our risk statement has the details.

At Zopa, all three of our products will be available within the ISA wrapper and you can choose to spread your allowance across all three products. The predicted returns on the Zopa ISA products will be the same as those that are available on the standard products – the only difference is that in a Zopa ISA, they are tax-free.

Based on the projected returns for the three products, the following table shows the amount of interest you could expect to earn if you put all of your annual tax-free allowance into one of Zopa’s ISA products:

Access Classic Plus
Return 3.1% 3.9% 6.3%
Interest £533 £686 £991
Saving (basic) £106 £137 £198
Saving (higher) £213 £274 £396
Return:
Projected return after expected defaults
Interest:
Projected interest after 1 year investment of £15,240
Saving (basic):
Tax saved on basic rate tax
Saving (higher):
Tax saved on a higher rate tax

Projections are not an indicator of future performance, and are intended as an aid to decision-making, not as a guarantee.

2

We’re offering flexibility around withdrawals...

If you need access to your money at any stage in the tax year, you will be able to withdraw funds without losing your tax-free allowance because the Zopa ISA is flexible.

What is a flexible ISA?

Flexible ISAs allow customers to withdraw funds from an ISA subscription without impacting their annual limit. For example, if you invest £15,240 and withdraw £5,000 from a flexible ISA, you could then put another £5,000 in at a later date within the same tax year and it would still earn tax-free interest. In a non-flexible ISA, that tax-free allowance would be lost.

3

Transfer existing ISA balances over to us too...

Those of you that have been building up your tax-free savings allowance over the years will be able to transfer all or part of those balances over to an Innovative Finance ISA with Zopa.

You can split your historic ISA balances across different types of ISA (i.e. across cash, stocks and shares and innovative finance), and you can have multiple ISAs of each type for historic balances.

The important thing to remember about transferring old ISA balances is that this must be done as a transfer directly between your old and new ISA provider – you cannot simply close your old ISA and move your money into another ISA, otherwise your money will no longer be eligible for tax-free interest.

Register your interest

Sign up below for more information and we’ll keep you updated, so that you’re among the first to know when the Zopa ISA is available.

For more information visit HMRC's ISA FAQs

Personal Savings Allowance (2016/17)

From 6th April 2016, the government is introducing a tax-free personal savings allowance of £1,000 (£500 for higher earners). This means you can start to make use of tax free investing at Zopa, even before our ISAs are launched.

Use our table to work out how you could take advantage of the personal savings allowance at Zopa (approximated based on current projected returns):

Access Classic Plus
Return 3.1% 3.9% 6.3%
PSA basic £29k £22k £15k
PSA higher £14.5k £11k £7.5k
Return:
Current projected return after expected defaults
PSA basic:
Approximate amount that you could invest as a basic rate tax payer in order to earn £1,000 tax-free interest
PSA higher:
Approximate amount that you could invest as a higher rate tax payer in order to earn £500 tax-free interest

Projections are not an indicator of future performance, and are intended as an aid to decision-making, not as a guarantee.

We're here to help

To date, we've helped 63,000 individuals invest over £1.88bn

Please note: Our phone lines close at 3pm today.

Monday to Thursday (9am to 5:30pm), and Friday (9am to 5pm).

Email: contactus@zopa.com

Telephone: 020 7291 8331

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