LendingCrowd Income ISA

An Innovative Finance ISA (IFISA) is the new way to invest tax free* in peer-to-peer lending. Just like Cash ISAs and Stocks & Shares ISAs, you can invest up to £20,000 this tax year, and you won’t pay tax on your returns*.

Non-ISA Account also available

At a glance:

Minimum investment £1,000

Target rate of return: 5.6%* a year

No fixed term — full or partial withdrawals* at any time

Build your own portfolio with one click

*As an investor, it’s important to remember you’re lending to businesses so your capital is at risk. Tax treatment depends on the individual circumstances of each investor and may be subject to change in future. The 5.6% target rate is variable, net of ongoing repayment fees, estimated bad debt and before the 1% capital withdrawal fee. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Returns

We designed the LendingCrowd Income ISA to make peer-to-peer investing simple while enabling you to take income from the interest you earn. We build a diverse loan portfolio for you, and automatically reinvest your capital repayments in new loans. The longer you hold the account, the more diverse your portfolio will become.

The Income Account works in a similar way to our Growth Account, with the key difference being that your interest payments are transferred to a separate account so you can withdraw them. This means you should expect returns of about 0.4% less than the Growth Account returns. As the Income Account is new, we don’t have the historical data to show you the returns yet. Instead, we’ve shown you the Growth Account returns below.

The majority of our Growth Account investors have portfolios of more than 100 loans after four months. Remember that diversification is key to mitigating risk.

By taking this diversified and balanced approach, investors in the Growth Account have achieved an average return of % before tax, as shown in the chart below. This shows the annualised return for all current LendingCrowd Growth Accounts that have been open for at least three months, where investors have not sold their loan holdings in the past 12 months.

This return, which does not include promotions, is calculated after all fees and bad debts have been deducted. Find out how we calculate returns.

Please remember that your capital is at risk when lending to businesses, and past performance is not a guide to future performance. Your returns may be higher or lower than those shown here.

Calculate your monthly income

An initial deposit of £

Benefits of the LendingCrowd Income ISA

Invest from £1,000 up to £20,000 in the current tax year

No income or capital gains tax to pay on your returns

Target rate of return of 5.6%* a year

Transfer in your other ISAs quickly and easily

Create your LendingCrowd Income ISA

Open an ISA

Invest up to £20,000 ISA allowance with LendingCrowd and earn a 5.6%* target return on your investment.

Open an ISA

Transfer an ISA

Transfer existing Cash ISAs, Stocks & Shares ISAs and Innovative Finance ISAs to LendingCrowd.

Transfer an ISA

How it works

The LendingCrowd Income ISA allows you to invest in peer-to-peer lending without having to pay tax* on your returns. You decide how much to invest — from a minimum of £1,000 up to £20,000 this tax year. We’ll automatically diversify your funds across all the loans available on our Loan Market. Your interest payments will be transferred to a separate account so you can withdraw them, while your capital repayments will be automatically reinvested. We also allow you to transfer in your other ISA accounts. This means you can invest even more in the LendingCrowd Income ISA without losing any tax benefits. If you invest through LendingCrowd you should understand that as a lender, your capital is at risk. The 5.6% target rate is variable, net of ongoing repayment fees, estimated bad debt and before the 1% capital withdrawal fee. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme. *Tax treatment depends on the individual circumstances of each investor and may be subject to change in future.

Accessing your money

The LendingCrowd Income ISA is for peer-to-peer investors who are looking to invest quickly and simply while taking an income from the interest earned on their investments. You can cash in all or part of your ISA at any time, but you must have at least £1,000 invested to meet your target rate of return and continue reinvesting in loans. If you want to withdraw your funds, you can sell investments on our Loan Market. There’s a 1% fee on the capital element for withdrawals. The time taken to access your funds depends on how quickly your holdings are sold. The ability to sell your investments depends on other investors buying your loans.