To find the best innovative finance ISA (IFISA) there are three things you should look for:

  • A term you are comfortable tying your money up for

  • The highest return for that term

  • The lowest costs for managing your IFISA; like withdrawal and deposit fees

The best IFISA will be the one that pays the highest return and charges no fees, but make sure you check the minimum deposits needed to open each IFISA when you compare.

What is an IFISA?

An innovative finance ISA (IFISA) is a peer to peer (P2P) account that uses an ISA wrapper so the return you make will be tax free.

Are IFISAs protected?

IFISAs are not protected under the Financial Services Compensation Scheme (FSCS).

However, most companies offer their own protection scheme that should compensate you if a borrower defaults on the money you lend them or the company goes bust.

How is an IFISA different to P2P?

You do not need to pay tax on the returns from an IFISA, and although P2P is not taxed at the source either, you are still required to declare any returns you make to HMRC.

Can you transfer your ISAs into an IFISA?

Yes, you can transfer any of your cash or stocks and shares ISAs from previous tax years into either one IFISA or separate individual IFISAs.

For example; if you have a cash ISA and stocks and shares ISA from the 2014/15 tax year, you could transfer one into a new IFISA and transfer the other into a separate IFISA.

You can only pay into one IFISA during a single tax year, but you can still pay into a cash ISA and stocks and shares ISA during the same tax year as long as you do not exceed your tax free ISA allowance.

Innovative finance ISA FAQs


How much can I save?


You can pay in up to your ISA allowance each tax year, and you can transfer existing ISAs into your chosen IFISA.


How much money do I need to open an IFISA?


This can vary depending on the company offering the IFISA, for example, 1,000.


How many IFISAs can I have?


You can only pay into one during each tax year, but if you have previous tax year ISAs you can transfer them into separate individual IFISAs.


Do I have to tie my money up to save in an IFISA?


Yes, but you can choose how long you tie your money up for. IFISAs tend to offer higher rates the longer you tie your money down for.


What other types of ISA can I have?


You can pay into an IFISA, cash ISA and stocks and shares ISA during the same tax year, but only up to your ISA allowance.

About our peer to peer ISAs comparison


Who do we include in this comparison?


We include innovative finance ISAs from our panel. They are regulated by the Financial Conduct Authority (FCA).

Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.