Zopa Logo My Account Innovative Finance ISA Smart investments, tax-free returns Generate projected returns between 2.0% - 5.3% Tax-free up to £20,000 Your capital is at risk, fees apply when selling loans. Tax treatment depends on your circumstances and may be subject to change in the future. We've currently got a waiting list in place for new investors. Sign up to be one of the first to invest when we start opening new accounts. Join our waiting list Fully regulated by the Financial Conduct Authority Not protected by the Financial Services Compensation Scheme TrustPilot LogoAn illustration of the Trust Pilot LogoTrustPilot Five star ratingAn illustration of five stars Rated excellent based on 16,686 reviews What you need to know The benefits of an Individual Savings Account (ISA) An ISA allows you to earn tax-free returns on savings or investments. Each tax year you can put up to £20,000 into an ISA and any interest you earn on that is tax-free. What's different about an Innovative Finance ISA (IFISIA) This is simply another type of ISA. It includes all the same tax benefits, but your money is invested in peer-to-peer loans. Investing in Zopa's IFISA Our IFISA works just like our standard peer-to-peer investments, but with the added bonus of the tax-free wrapper. Our projected returns between 2.0% - 5.3% mean we’re nestled in the sweet spot between low-risk, low-return cash ISAs and the wild volatility of stocks and shares. What’s more, we don’t offer juicy introductory rates only to drop them later, so you can earn healthy returns year after year. About Zopa 1st The world’s first peer-to-peer platform 16 years of personal loan investment expertise £5 billion in personal loans lent to over 470,000 UK consumers £350 million interest generated for over 60,000 active investors Numbers as of May 2020 We bring borrowers and investors together Start off from as little as £1,000 and we’ll split your money across a unique selection of loans to reduce risk and help you earn a return within your projected range. Feel good knowing your investment will help people across the UK with everything from unsecured loans for home improvements to secured car finance for new wheels to get to work. We find people in the UK that want to take out a loan for a maximum amount of £25,000. Drawing on our wealth of lending experience, we assess their risk and calculate a fixed interest rate for a period of up to five years. Then, we match them with people like you – people who want to earn a good return while helping others achieve their goals. How investing with Zopa works 1 Zopa breaks your investment down into small chunks in order to spread your investment across lots of loans. 2 We'll then get to work, finding the right loans to match your investment with so you're set up to perform within your projected return range. 3 You’ll get monthly repayments, with interest but minus our borrower servicing fee. You can track your investment performance through your Zopa account. 4 Some loans default, but don't worry, we already factor this in when calculating your projected returns. 5 By letting us reinvest your repayments as they come in, you can earn interest on interest. Who you invest in Our borrowers come in all shapes and sizes, but we run checks on every single one. Here’s a snapshot of what they look like. Can demonstrate a good track record of repaying debt Are current UK residents Have at least three years of UK address history Average age of 40 years old* Average income of £40,000* *average January 2018 – April 2019 IFISA investment tailored to your appetite Just like our standard peer-to-peer investment, we offer two IFISA options, Core and Plus. ISA Core Projected return range 2.0% - 4.0% We expect 95% of customers to achieve a return of at least 2.0% (after fees and losses). A middle-performing investor should expect to earn 3.2%. Minimum initial investment: £1,000 Risk level Low to medium Investment term No fixed term ISA Plus Projected return range 2.1% - 5.3% We expect 95% of customers to achieve a return of at least 2.1% (after fees and losses). A middle-performing investor should expect to earn 3.7%. Minimum initial investment: £1,000 Risk level Medium Investment term No fixed term Tax treatment depends on your circumstances and may be subject to change in the future. Your capital is at risk. Loans can have terms up to 5 year. You can use our platform to sell at anytime for a 1% fee, provided another investor is prepared to buy your loan. How our investments have performed At Zopa, we aim for our peer-to-peer investments to be nestled in the middle between low-risk, low-yielding savings accounts and volatile, high-return stocks & shares investment. This chart looks at the performance of Zopa's overall loan book. It's important to note that each investor's portfolio is unique. Past performance can’t be relied on as an indicator for future results. Zopa returns are the net annualised return of loans by the year they started. See historical performance Our track record of stable, inflation-beating annual returns Source: Equities: MSCI ACWI Index; Property: Schroders, Thomson Reuters Developed Market Real Estate Total Return Index; Corporate Bonds: Schroders, ICE BofAML Global Corporate Total Return Index; Cash: Bank of England Zopa Core ‘Jen’ has achieved annual returns of 3.8% The expected return was 4.1% Annual return achieved by 90% of Zopa Core investors over 2.8% Zopa Plus ‘Dan’ has achieved annual returns of 4.2% The expected return was 4.8% Annual return achieved by 90% of Zopa Plus investors over 3.2% Have a look at our middle performing investors These are our ‘median’ investors, as of May 1st 2020. They’re right in the middle – about 50% of investors have performed better and 50% worse. So far, fewer than 1% of our investors have made a loss. Of these investors, the average loss amounts to less than 1% of the money they invested. How we've measured performance How we worked out annual returns Net Annualised Return (NAR) shows you the annual rate of return on an investment over its lifetime. NAR is based on actual borrower repayments received, minus service fees and default losses, but including any recoveries made on defaulted loans. Why there's a spread of annual returns Every investor’s loan book is unique to them. We look at the NAR of investors that started in Plus or Core with 100+ loan chunks, held 100+ loans as of May 2020, have been investing for at least 12 months and have been reinvesting their repayments. We feel these are most representative of performance. How we worked out expected returns Because expected returns change over time, we use a weighted average as a benchmark for performance. This figure is the average of the expected returns over the lifetime of the investment, with more importance – or weight – given to the expected returns that had more funds invested at that rate. How we manage the risks Your investment will be spread across many different loans. This reduces your risk as no one person is lent more than 1% of your original investment. We know that loan repayments can be missed. But thanks to our experienced Collections team, the vast majority of our borrowers who miss a payment will get back on track and fully repay their loan. There will be times when a borrower is unable to repay their loan, though, and it has to be defaulted. When this happens, you’ll lose the value of that loan from your investment. But don't worry, we already factor some defaults into your projected returns. We'll also continue to try to make recoveries on your behalf, even after a default. Finally, our business is robust, but we also make sure your loans are taken care of if Zopa were to go out of business. Find out more on our contingency plan page. Approving the right loans Our borrowers have to meet high standards. We only approve about 20% of people who apply for a loan with us.† Everyone that we do approve is categorised based on their risk and given an interest rate personalised to them. † Based on applications via ClearScore May 2018 – March 2019, representative of Zopa's borrower approval rates. More about who we lend to 20% of loan applications approved Low - medium risk 80% of loan applications were from applicants we view as too risky Moneyfacts Consumer Awards Personal Loan Provider of the Year Peer-to-peer Provider of the Year Starting 2020 on a high, Zopa has been recognised as the Personal Loan & Peer-to-peer provider of the Year in the Moneyfacts Consumer Awards. Alongside the winning titles, Zopa was highly commended for the Best Customer Service category. This is the seventh year in a row that we’ve brought home awards from the annual ceremony which means a lot to us as they’re voted for by our customers. Thanks to everyone that voted for us! All winners can be found here See our awards People often ask us Are there any additional fees? Is the Zopa IFISA flexible? How much should I consider investing? How can I access funds in my Zopa investment? How could I get the most out of my Zopa IFISA? Can I have a standard Zopa investment and an IFISA? What is the projected return range? Ready to start investing? When you invest your money, your capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS). Our risk statement has all the details. Tax treatment depends on your circumstances and may be subject to change. Peer-to-peer investments are not like other investments, so before you continue make sure you’ve read and understood all of the information above. We've currently got a waiting list in place for new investors. Sign up to be one of the first to invest when we start opening new accounts. Join our waiting list WHAT WE DO Car hire purchase Car loans Debt consolidation loans Home improvement loans Wedding loans Peer-to-peer investments Innovative Finance ISA Credit cards Fixed Term Savings ABOUT ZOPA About us Our story Meet the board Meet the leadership team Awards Careers Blog Complaints Press office LEGAL Privacy notice Cookie policy Conflicts policy Modern slavery Terms of use Investor principles NAVIGATION Help Sitemap Zopa Logo Zopa Limited is authorised and regulated by the Financial Conduct Authority, and entered on the Financial Services Register (718925). Zopa Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and entered on the Financial Services Register (800542). Zopa Limited (05197592) and Zopa Bank Limited (10627575) are both incorporated in England & Wales and have their registered office at: 1st Floor, Cottons Centre, Tooley Street, London, SE1 2QG. © Zopa Bank Limited 2021 All rights reserved. 'Zopa' is a trademark of Zopa Bank Limited. Zopa is a member of Cifas – the UK’s leading anti-fraud association, and we are registered with the Office of the Information Commissioner (ZA275984, Z8797078).