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Earn tax-free interest with our IFISA

The Innovative Finance ISA (IFISA) enables you to use your annual Individual Savings Account (ISA) allowance to earn tax-free interest from peer to peer lending.

  • Receive monthly tax-free interest of 6.5% p.a.
  • Invest your full 2018/19 ISA allowance of £20,000
  • Transfer your existing ISAs
  • Secured against UK property
  • Support local businesses, on a national scale

The IFISA acts as a ‘wrapper’ around your FOLK2FOLK loan investment so that the interest arising is tax-free. You can choose whether to lend inside or outside of the IFISA tax wrapper (or both) but there is a limit to how much new ISA money you can lend within the IFISA each year.

Enquire about our IFISA today

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The FOLK2FOLK IFISA
Investment amount

Your full annual ISA allowance for 2018/19 which is £20,000 or transfer existing ISA funds.

Interest rate
  • 6.5% p.a. paid monthly tax-free.
  • This is a fixed rate and will not change for the duration of the loan.
  • Interest earned on the IFISA is paid to your specified bank account monthly. This means interest cannot be accrued inside the IFISA so the investment amount at the end of the term will remain at £20,000.
IFISA term
  • From 1 to 5 years.
  • Dependent upon the term of the loan you invest into.
Transferring funds from other ISAs

Yes. Existing ISA money that is transfered across to your FOLK2FOLK IFISA will need to be a minimum £20,000 and in multiples of £5,000.

Fees 1% Annual Administration Fee + VAT on the subscription amount (capped to maximum £1,000 + VAT).
Calculated on a pro-rata basis each tax year.

The FOLK2FOLK IFISA
Investment amount

Your full annual ISA allowance for 2018/19 which is £20,000 or transfer existing ISA funds.

Interest rate
  • 6.5% p.a. paid monthly tax-free.
  • This is a fixed rate and will not change for the duration of the loan.
  • Interest earned on the IFISA is paid to your specified bank account monthly. This means interest cannot be accrued inside the IFISA so the investment amount at the end of the term will remain at £20,000.
IFISA term
  • From 1 to 5 years.
  • Dependent upon the term of the loan you invest into.
Transferring funds from other ISAs

Yes. Existing ISA money that is transfered across to your FOLK2FOLK IFISA will need to be a minimum £20,000 and in multiples of £5,000.

Fees

1% Annual Administration Fee + VAT on the subscription amount (capped to maximum £1,000 + VAT).
Calculated on a pro-rata basis each tax year.

What you should know about IFISA

Before you can benefit from our IFISA you must first register as a FOLK2FOLK Lender and ensure you familiarise yourself with secured lending.

The risks of IFISA

IFISAs are not the same as cash ISAs. The risk of investing through a peer to peer platform is higher. Read more.

How much will you earn?

How much will you earn after fees? Read more.

The IFISA timeline

How long does it take to begin earning tax-free? read more.

How to access your IFISA investment money

What are your options and how to retain your tax-free status. Read more

FAQs

For other frequently asked questions, click here to read more.

Fees

We charge a fee for providing our IFSA tax wrapper but this fee is not applicable for loans outside the tax wrapper. Secondary market fees apply if you wish to exit your loan investment early.

How to Fund Your IFISA

  • New ISA moneyYou can use your current tax year’s allowance.
  • Existing ISA moneyYou can transfer existing ISA funds (min £20,000, in multiples of £5,000). We’ll provide you with a transfer authority from which you’ll need to complete and then we’ll do the rest. We’ll contact your existing ISA manager to arrange the transfer of your money to ensure it keeps tax-free status.

Are you eligible?

  • You are registered as a FOLK2FOLK Lender
  • You are resident in the UK and tax resident
  • You have not funded any other ISA type investments this current tax year.(only applicable if you’re funding the IFISA with new money)
  • You are 18 years old or over

Ready to get started? Email us at IFISA@FOLK2FOLK.com to enquire about our IFISA today.