Realistic Yields on P2P Investments

Peer to peer (P2P) lending platforms offer interest rate yields much higher than those being offered on cash deposits by the high street banks and building societies. Depending on risk appetite (read our guide on peer to peer risk) your capital could target a yield of anywhere between 6% and 10%+ if deployed successfully through peer to peer lending.

Are 10%+ Innovative Finance ISA returns really that realistic?

P2P platforms are typically advertising rates at between 5-8%, with some even advertising 10%+ returns.

While such rates compare favourably to the prevailing Cash ISA rates available to UK taxpayers, it is vital that those considering lending their money via peer to peer lending platforms understand the different risk profiles faced by Innovative Finance ISA lenders and Cash ISA savers. Our Risk pages explain in broad terms the high-level differences between Cash ISA saving and peer to peer lending.