Watch this space: RateSetter ISA coming February 2018

The RateSetter ISA will be available from February 2018, and will allow RateSetter customers to lend tax-free on any of our markets.

As a reward to our loyal customers, the RateSetter ISA will exclusively be available to existing RateSetter lenders for an initial two week period.

Investing through in the RateSetter ISA will work just like the RateSetter Everyday Account – you’ll be able to lend in the Rolling, 1 Year and 5 Year markets, with the key difference that all the interest you earn will be completely free of tax.

Once the ISA launches, you will have until 5 April 2018 (the end of the current tax year) to invest the 2017-18 ISA allowance - up to £20,000 - in your RateSetter ISA. Please note that this figure will be lower if you have already used part of your tax free allowance in another ISA.

As with all types of ISA, investment limits apply. The current limit is £20,000 each year, which you can invest in stocks and share ISAs, cash ISAs and of course the RateSetter ISA.

How do I set up an IFISA?

Sign up below for more information and we’ll keep you updated, so that you’re among the first to know when a RateSetter ISA becomes available. Don't worry, we will not share your email with any third parties or send you any unrelated emails.


What is the Innovative Finance ISA?

The Innovative Finance ISA makes it possible to invest through peer-to-peer platforms such as RateSetter, tax-free. Currently, if you want to invest using your tax-free ISA wrapper, you’re restricted to two options:

  • Put your money in cash accounts, which benefit from FSCS protection and generally pay a low rate of interest. One year cash ISAs pay an average of 1.42%, as of December 2017 (source: Bank of England data accessed on 4 December 2017).
  • Invest in stocks, shares and funds, which are risky and volatile, but have the potential for higher returns.

The IF ISA means that people can use the ISA wrapper to invest in a new asset class: peer-to-peer lending. Peer-to-peer lending is riskier than FSCS-backed cash accounts, and capital is at risk. However, with that risk comes higher returns – RateSetter’s products currently pay annualised rates of between 2.7% and 5.1% depending on how long you’d like to invest for.

Our Provision Fund also means that to date, no individual investor has lost a penny. Past performance is not a guarantee of the future. However, it’s a track record we go out of our way to maintain.