Innovative Finance ISA or IFISA is a service provided by peer to peer platforms. IFISA allows you to make investments and earn tax-free interest. Any interest that you earn with IFISA investment will never be taxed, and it doesn’t count towards your savings allowance. There is a limit on how much you can invest in ISAs per tax year, and this limit is called the annual ISA limit. This limit for 2020 is £20,000. You can invest all your allowance in an IFISA, or you can spread it across different ISA types. Typically the IFISA mechanics with p2p lending are the same as the regular peer to peer lending providers. There are many innovative finance ISA providers on the market that offer IFISAs. These providers allow you to lend to businesses, infrastructure development, consumers or other projects.
Every Innovative Finance ISA provider has to be authorised by the Financial Conduct Authority for providing these solutions. There is a lot of diversity within IFISA, since the industry is growing a wide range of options are becoming available to investors. Every provider specialises in a specific type of p2p lending, the loan type and interest rate offered varies based on that. Most IFISAs provide high-interest rates, at times, as high as 15%. However, high-interest rates also mean risky investments and your funds are not diversified across different loans read more visit our website.
