How To Lend Across Multiple IFISAs In One Year!

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By on 21 June, 2018 | Read more by this author

As you may know, you can only open one IFISA in a tax year, which runs from 6th April to 5th April, and this limits your ability to spread your money and the risks across lots of provider.

But you're wrong!

You are actually allowed to open lots of IFISAs in one tax year. The rule is that you're not allowed to put new money into more than one IFISA.

Therefore, you could open an IFISA for new money, which is capped at £20,000. And you could open another new IFISA at the same time, into which you might transfer other, older money from an IFISA that you contributed to in an earlier tax year.

Indeed, there is no limit to this. If you have yet more ISAs, be they IFISAs, cash ISAs, or stocks and shares ISAs, you could therefore easily diversify into lots of IFISAs in the space of one month, by opening several IFISAs and transferring those pre-existing amounts. This dramatically lowers your risks.

Partial transfers might help too

In addition, if you don't have a large number of other ISAs, some IFISA (and other ISA) providers allow you to make partial transfers out and, on the other side, to transfer in part of the money from an existing ISA. Therefore you could split an old ISA into several new IFISAs.

FundingSecure, HNW Lending*, Landbay*, Money&Co and MoneyThing have already confirmed that they will allow this, with no special fees or small print. has confirmed that it accepts partial transfers in. I'll add to those lists on this page as more confirm their position over the coming days.

What this means is that you could lend across a half dozen or more IFISAs with relative ease within about a month, by transferring from other existing ISAs. You don't have to wait a whole year to open your second ISA, then another year for the third, and so on.

Just to be clear, though, you can only do partial transfers of money you contributed in previous tax years. New money contributed in the current tax year has to stay where it is or be transferred in full.

Theory and practice aren't always the same

It is astounding how differently P2P lending sites interpret – or misinterpret – various technical details related to regulation, law, taxes and IFISAs.

So you might find that some P2P lending sites are not as flexible as they are allowed to be.

What if you have no other ISAs?

If you have no other ISAs, you can still diversify by opening other, “normal” P2P lending accounts, which still typically pay attractive interest rates. If you don't want to do that, at least diversify by putting some of your savings into savings account, the stock market, or other investments.

The opinions expressed are those of the author and not held by 4thWay. 4thWay is not regulated by the FSMA and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.

Experts, journalists and bloggers who conduct research and write articles for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.

*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from HNW Lending and Landbay, and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.

3 responses to “How To Lend Across Multiple IFISAs In One Year!”

  1. Janos Ratkai says:

    Hi
    Instead of “you can only open one IFISA in a tax year”
    would you write “you probably thought you can only open one IFISA and one ‘cash ISA’ and one ‘stocks and shares ISA’ (i.e. possibly all 3 kinds of ISA, maximum 1 of each kind) in a tax year”?
    If you open one ‘cash ISA’ and/or one ‘stocks and shares ISA’, put new money into them, then (partially) transfer these to newly opened IFISAs, is not that the legal way to put new money into as many new IFISAs as you like?

    • Neil Faulkner says:

      Hi there

      You can’t partially transfer new contributions, i.e. money you have contributed in the current tax year. If you contribute £10,000 to an IFISA in a tax year, you can’t transfer half of that to another IFISA in the same tax year. New contributions have to be transferred in full.

      You can only partially transfer money from previous years and their gains. So if you contributed £10,000 one tax year, the next tax year you could then transfer £5,000 of that to a different IFISA and, if you want and are allowed by the individual providers, you could transfer the other £5,000 to a second IFISA – for example.

  2. Janos Ratkai says:

    OK. My point was using possibly all 3 kinds of ISA. Even if you fully transfer 3 kinds of newly opened ISAs, does not it enable having new money in at least 3 new IFISAs?

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Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

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We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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