British peer-to-peer (P2P) lender Zopa has announced plans to launch Innovative Finance Individual Savings Account (IFISA) from 15 June 2017.
The IFISA, which will be launched subject to approval of HM Revenue and Customs (HMRC), will deliver returns of up to 6.1%.
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At the same time, Zopa also announced plans to retire its Access and Classic investment products from December 2017 and replace them with a new offering known as Zopa Core.
Zopa Core will offer exposure to Zopa’s A*-C risk markets but will not be covered by the Safeguard fund. The new proposition will offer net returns of 3.9%, as compared to 3.7% and 2.9% returns given by Classic and Access, respectively.
The bank said that existing customers can continue to lend through Classic and Access till 1 December 2017, however new customers will be not be able to access them. The firm will also stop originating loans with Safeguard coverage after December 2017.
“All existing Safeguarded loans will continue to receive coverage (subject to there being sufficient funds in the trust) until December 1st, 2022, by which time all Safeguarded loans will have matured,” Zopa said.
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By GlobalData
