Innovative Finance ISA


Earn 6.5% p.a. tax-free while giving British businesses a boost. The Innovative Finance ISA (IFISA) wrapper enables you to use your annual Individual Savings Account (ISA) allowance to earn tax-free returns from Peer-to-Peer lending.


Why invest in the FOLK2FOLK IFISA?

  • ​Receive monthly tax-free interest of 5.5% p.a. or 6.5% p.a.
  • Invest your full 2017/2018 ISA allowance of £20,000
  • Secured against UK property
  • Support local businesses, nationally

Risk warning:

  • Peer-to-peer lending is not covered by the Financial Services Compensation Scheme (FSCS)
  • With peer-to-peer lending your capital is at risk if the borrower is unable to repay the loan
    Read more about how we manage risk


A ​​1% Annual Administration Fee + VAT of the subscription amount applies for the creation of your IFISA wrapper.  This annual fee is calculated on a pro-rata basis from the date your funds are received into your IFISA wrapper and will be collected by Direct Debit from your specified account the following month.


​​Tax overview of FOLK2FOLK IFISA

  • Take a look at our Interest after Tax and Fees table to understand the implications for different tax brackets and the impact of fees.
  • Please note that FOLK2FOLK cannot give tax advice and you should seek tax advice if required.
  • Tax treatment depends on the individual circumstances of each client and may be subject to change in future. 


How to set up a FOLK2FOLK IFISA wrapper

​​If you are an existing FOLK2FOLK Lender:

Please email and we will send you the application form to set up your IFISA wrapper

If you are not currently a FOLK2FOLK Lender:

You will first need to become a FOLK2FOLK Lender and tell us that you 'd like to set up an IFISA tax wrapper.  For any questions, please email

Please note:

  • Transfers: Transfers in from external ISAs will be available shortly. Lenders will be notified once this is available.
  • Waiting times: Your investment will be matched on a first-come-first-served basis bases via our lending queue.  There are no guarantees as to how long it will take to be matched to a loan. Waiting times vary depending upon Borrower and Lender demand at the time.
  • Interest: while your funds are not invested in a loan they will not be earning bank or loan interest. 


For further information about lending via the FOLK2FOLK platform and our IFISA, download our Lender Guide.​ For full details please refer to our Terms & Conditions




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Customer Stories

  • Richard's Story - Borrower

    "Sharp & Tappin is a precision engineering company and has been going for 11 years. The business has two parts: one is onboard cameras for ships and the other is composite blade saws...
  • Jim’s Story - Lender

    "I started my working life as a pilot in the Royal Air Force and after a 10 year commission I went to work in a building society which had a business arrangement with Parnalls solicitors who...
  • Pam's Story - Borrower

    "In 2009, I, together with my husband Robert and daughter Robyn, bought a pub which I had previously owned with my husband and sister in law and brother in law and sold in 2001. Since then it...
  • Nick's Story - Borrower

    Originally I was a farmer, but after Foot and Mouth affected us we had to diversify and Folk2Folk have enabled me to do this.  

    I have borrowed money through Folk2Folk since they began and...
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