Here at Make Money Your Way, we are always on the lookout for ways to make more money. So when Zopa introduced its peer-to-peer New Individual Savings Accounts (NISAs), I was intrigued.
As you know NISAs allow you to save up to £15,000 a year tax free, and you can choose whether you want to save that amount in cash, stock and shares, or a mix of both. The whole setup is pretty flexible, you just have to be careful with your allowances from previous years, when it comes to moving the money to a better paying ISA, it has to be done properly or you can lose the tax free benefits.
Anyway, a few month ago, the government announced that peer-to-peer lending accounts will also soon become eligible for tax free ISA benefits, meaning you will be able to transfer your peer-to-peer loans under your ISA and avoid taxes on the interest received. It can work out pretty well since peer-to-peer lending generally pays a higher interest rate than normal savings accounts. However there is a certain amount of risk since the person you are lending money to could default on the loan.
Peer-to-peer NISAs should launch at the beginning of next year, so in the meanwhile enjoy this infographic with all the details about them!