Best Innovative Finance ISA?

Looking at the Best Innovative Finance ISAs


Innovative Finance ISAs – or IFISAs as they are also known – are getting a lot of attention in the UK right now. This is likely due to the higher interest rates on offer compared to other ISA types.

While all Innovative Finance ISAs are connected with peer-to-peer lending in some way, it’s important to realise that different providers lend to different types of borrower. Some lend your investment out to property professionals, for example. Others lend your investment to individual borrowers who may be looking for a personal loan.

For quite a long time there were only a couple of companies that offered Innovative Finance ISAs. This has gradually increased over the past couple of years. 

Of the IFISAs now available who are the most popular providers? Here are 4 of the best IFISA providers for you to consider.


You will likely recognise the branding of the easyMoney Innovative Finance ISA. This is because easyMoney are a part of the ‘easy’ family of brands. These include companies such as easyJet and easyCoffee.

easyMoney lends your investment out to property professionals. The loans they give are usually short term loans of between 3 and 12 months. To protect your investment, the company takes a security on all properties bought using an easyMoney loan.

easyMoney has a minimum investment amount which varies across the accounts they offer. As a general rule, the more you invest the higher the target interest rate on offer. 

The easyMoney Tax-free Classic account comes with a £100 minimum investment and the target interest rate is 3.67% at the time of writing.

easyMoney’s Tax-free Premium account has a minimum investment level of £10,000 and a target rate of 5.12%.

The company recently introduced a new product called Tax-free Premium Plus. The minimum investment for this is £20,000 and the target interest rate is 6.06%.

Finally there is the easyMoney Tax-free High Net Worth account. This has a minimum investment amount of £100,000 and the target rate is 7.01%.

For more info check out our full easyMoney ISA review.


Kuflink is another IFISA provider with a focus on loans to fund property purchases.

It’s important to know that the Kuflink Innovative Finance ISA works slightly differently to their non-ISA investment account. A non-ISA Kuflink account would allow you to choose which property deals you lend money to. With the Kuflink IFISA, Kuflink will diversify your invested cash across a range of property purchases, with the aim of lowering the risk.

With Kuflink the amount of interest you can earn depends not on how much you invest, but on how long you invest for. The minimum investment on all Kuflink IFISA accounts is £100. The listed interest rates for the different periods of investment are as follows: 

  • 1 Year Term = 5% per annum 
  • 3 Year Term = 6.1% per annum
  • 5 Year Term = 7% per annum

Kuflink also has a cashback offer available to new investors which you can find out details of in our full kuflink ISA review.


Unlike the previous two IFISA providers mentioned in this post, RateSetter is a little different as they focus on lending to individuals in the form of personal loans. RateSetter also lend to property developers and businesses of various types. 

RateSetter currently has 3 different investment product options. How much you will earn in interest depends on which account product you select. 

You can withdraw your money from the RateSetter Access account at any time with no fee. The Plus and Max accounts carry a ‘release fee’ if you withdraw your money, though. Details of this fee are as follows:

  • Access account = 3% interest annually with no fee to release
  • Plus Account = 3.5% interest annually with release fee of 30 days
  • Max Account = 4% interest annually with release fee of 90 days

RateSetter also has a signup offer for new investors who invest over £1000. To find out more and benefit from the offer, check out our RateSetter ISA review.


Loanpad is another Innovative Finance ISA provider who focuses on lending to property professionals.

One attractive feature of the Loanpad IFISA is the low minimum investment amount. This sits at just £10. If you opt for Loanpad’s Classic account you can also maintain instant access to your cash.

The Loanpad Classic account comes with 4% annual interest. This interest is paid on a daily basis into your Loanpad account. 

If you want more interest then you can opt for their Premium account. This comes with a 5% rate of interest but carries a 60 day notice period to access and withdraw your money.

As with other peer to peer lenders in the property loans niche, Loanpad takes a security over any property they lend money on. They also take on the least risky part of the loan with their lending partners taking on the more risky parts. 

The above is explained more fully in our Loanpad Review.    

What Are the Risks?

Innovative Finance ISAs can be a good way of earning more interest or diversifying your investments. That being said, it’s important to remember that these are investment accounts and not savings accounts. This means that – while the IFISA providers mentioned in this post have put measures in place to mitigate the risks – your capital is still at risk as it is with other investments. 

The Financial Services Compensation Scheme (FSCS) also does not provide cover for IFISAs. Again, while providers have put measures in place to protect investors money, these are not guaranteed by the UK government. Be sure you are happy with the risks before investing your money. 


We hope that this post has given you a good overview of some of the best IFISAs available in the UK. As we have seen, they are all set up slightly differently and focus on lending your money to different types of borrower. They also differ when it comes to minimum investment amounts and investment terms. With this in mind, be sure to read our more in-depth reviews of the companies mentioned here. This will help you to more fully understand how each IFISA provider works and to find the right Innovative Finance ISA for you.

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