Folk2Folk, a peer-to-peer lender that claims title of being the largest in the UK, having facilitated over £764 million in loans since inception, says it is experiencing a “surge” in transfers to its Innovative Finance ISA (IFISA).
Folk2Folk reports almost £77 million of investment into the IFISA.
Folk2Folk states that during the 2024/25 tax year, Cash ISA transfers accounted for over 73% of all ISA transfers to the platform, an increase on the previous year, with the remainder coming from stock ISAs, which is said to reflect a growing shift in investor behaviour.
For the 2025/26 tax year, 100% of ISA transfers to FOLK2FOLK’s IFISA have come from Cash ISAs.
Roy Warren, Managing Director of Folk2Folk, said they are seeing more people moving away from cash and looking for ways to generate income and beat inflation.
“Our IFISA offers fixed monthly interest, backed by property and is a clear alternative to leaving cash sitting dormant. And it funnels private capital directly into growing British businesses, which is something the Government wants to see.”
Folk2Folk previously sent a letter to the Chancellor calling for greater awareness of the lesser-known IFISA and its role in encouraging more productive use of tax-free allowances.
In the first month of the 2025/26 tax year, FOLK2FOLK shared that it booked its strongest monthly ISA inflows, receiving more than £4 million in new funds.
Currently, the Folk2Folk IFISA generates an 8.75% return with no fees.