Innovative Finance ISAs allow you to earn interest of 6% to 12% through peer to peer investments, whilst using your £20,000 ISA allowance so that all earnings are tax-free.
Whilst a regular cash ISA may only offer up to 1.7% per annum, an Innovative Finance ISA allows you to earn significantly more by investing money into a pool of borrowers who are looking for funds. Using a peer to peer lender, you are matched with individuals and borrowers who have applied for money and based on the risk you take on, the higher your return can be.
You can start investing from as little as £1, although you may need to contribute higher amounts of £500 or £1,000 to reap the largest rewards. Through the Innovative Finance ISA, you are protected for up to £85,000 worth of losses through the Financial Services Compensation Scheme. Use the table provided by My Financial Broker to find the best product for you and start saving today.