Folk2Folk, the UK’s largest peer-to-peer lending platform, has reported a surge in transfers from low-yielding money ISAs into its Progressive Finance ISA (IFISA).
Through the 2024/25 tax yr, money ISA transfers accounted for over 73 per cent of all ISA transfers to the platform, a rise on the earlier yr, with the rest coming from shares and shares ISAs.
This improve comes amid a wider public dialogue round money ISA reform and the rising visibility of options like IFISAs – the tax wrapper round peer-to-peer lending investments.
Learn extra: Folk2Folk posts 43pc rise in revenue and file turnover
Up to now within the 2025/26 tax yr, 100 per cent of ISA transfers to Folk2Folk’s IFISA have come from money ISAs.
“In a yr the place investor warning has been excessive and inflation has eaten away at financial savings, we’ve seen extra folks making an lively alternative to maneuver away from money ISAs, looking for alternatives that may outpace inflation and ship earnings,” mentioned Roy Warren (pictured), managing director of Folk2Folk.
“Our IFISA provides fastened month-to-month curiosity, backed by property and is a transparent various to leaving money sitting dormant. And it funnels personal capital instantly into rising British companies, which is one thing the federal government needs to see.”
Folk2Folk lately wrote an open letter to the UK Chancellor Rachel Reeves, calling for higher consciousness of the FISA and its advantages for each buyers and the UK financial system.
Folk2Folk’s IFISA has now attracted practically £77m of funding. Within the first month of the 2025/26 tax yr, Folk2Folk recorded its strongest month-to-month stage of ISA inflows, receiving greater than £4m in new funds.
Whereas ISA exercise historically peaks in March, Folk2Folk mentioned that this post-deadline surge suggests momentum is carrying into the brand new monetary yr as its IFISA is more and more seen as a year-round earnings technique.
Learn extra: IFISAs supply regular returns amid inventory market turmoil
Folk2Folk’s IFISA allows people to lend on to UK companies by way of secured loans backed by land or property. Traders earn fastened month-to-month curiosity from 8.75 per cent every year, with no charges and a minimal funding of £20,000.
Folk2Folk has lent over £764m to small companies throughout regional and rural Britain since inception in 2013.
