What is the Innovative Finance ISA?
The Innovative Finance ISA (IFISA) allows individuals to earn tax-free returns by investing over P2P lending platforms using their annual ISA allowance of £20,000. Introduced on 6 April 2014, the IFISA is only available via FCA-authorised P2P lending platforms.
How does the IFISA work?
The IFISA works very much like any other ISA. It allows you to deploy some or all of your annual tax-free ISA allowance across certain P2P lending platforms, including ArchOver. Your annual ISA allowance is £20,000, which can be invested in any type of ISA, and interest earned is tax-free. As with all other investing, your capital is at risk.
How does ArchOver work?
ArchOver connects established UK businesses requiring finance with investors seeking a secure and favourable return.
Lending with ArchOver takes place over our secure online platform. Every loan listed on the platform has been reviewed by our experienced in-house Credit Team. The rate, loan term, loan security type and company details are listed for your review. Invest on a loan-by-loan basis in multiples of £1,000 on loan periods of between 3 and 36 months, or in increments of £250 via our automated Investment Plan over a 26 month period. Loan-by-loan investments earn interest between 7.75% and 10% p.a., and a target rate of 7.4% via our Investment Plan. Interest is paid monthly from loan draw down.
Benefits of the ArchOver IFISA
- Earn up to 10% p.a. tax-free
- Choose between investing on a loan-by-loan or automated basis
- Choose from a range of security types, so you can diversify your portfolio in-line with your investment goals
- The rate posted with the loan is the rate you receive
- Lend to established UK businesses that meet our strict criteria
- All loans have passed our thorough credit analysis and are monitored monthly throughout the term
Opening an IFISA with ArchOver
The ArchOver IFISA is open to both new and existing Lenders.
To open your IFISA, please log in and follow the instructions on-screen. You will need your National Insurance (NI) number in order to complete your registration. To invest using your IFISA, you will need to deposit funds into your 'ISA Wallet' before pledging on the platform. You can do this via the 'Wallets' tab on your Investment Dashboard.
Please remember, you can only have one IFISA with one provider in a tax year. You can change providers during the tax year by transferring your IFISA from your current provider to a different FCA-authorised platform, including ArchOver. To do this, you can complete our online Transfer In application which can be found on your profile. You can transfer in funds from a Cash ISA, Stocks & Shares ISA and an IFISA.
Lenders: Your capital is at risk and interest payments are not guaranteed if the borrower defaults. Historic loan default rates are not necessarily indicative of future default rates. Lending over the ArchOver platform is not covered by the Financial Services Compensation Scheme. The current average return is based on the total amount raised over the platform. It is the result of calculating the average Lender return, before tax, of every loan funded over the ArchOver platform. Borrowers: In the event of default, ArchOver will seek to recover assets to the full value of the loan. Understand more about: Detailed Risk Warning, Defaults, Recoveries & Losses, General FAQs .