The Kuflink Peer to Peer Investor Blog

Publish at: 2018-02-08 09:32:26

What is an Innovative Finance ISA?

Innovative Finance ISAs (IF-ISA) are the most recent addition to the ISA family, introduced by the UK Government in 2016. IF-ISAs give savers the opportunity to use their tax-free ISA allowance to invest in peer-to-peer opportunities. IF-ISAs can offer much higher interest rates than many traditional Cash ISAs and their introduction builds upon the popularity of the peer-to-peer sector, through which more than £10 billion has already been invested in the UK.

What makes an IF-ISA different to a Cash ISA?

Many traditional Cash ISAs typically offer below 1% interest pa, whereas IF-ISAs can offer much larger returns. For example, Kuflink customers can earn up to 5.35% interest pa* – that’s more than 5 times the average!

How are funds in my IF-ISA invested?

Funds invested in an IF-ISA are used for peer-to-peer lending, but the exact nature of the opportunity varies from ISA to ISA. Kuflink invests your funds on your behalf across a diversified pool of UK property-backed deals, which also diversifies investors’ risk. *

How much can I invest?

Each tax year, HMRC set a tax-free personal savings allowance, which currently stands at £20,000 for 2017/18.

Can I transfer money from an existing ISA?

Yes, you can transfer your money from an existing Cash ISA, Stocks and Shares ISA or Innovative Finance ISA without losing your tax-free wrapper. Kuflink provides fee-free transfers into its IF-ISA, although other providers (including your existing ISA provider) may charge to transfer your money.

To find out how a Kuflink IF-ISA could earn you up to 5.35% interest pa*, download our free, easy-to-read infographic!


*Capital is at risk. Past returns are not a guarantee for future returns. Rate based on 5-year fixed-term investment. Investors are encouraged to seek independent financial advice.

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