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P2P Lending And IFISA Cashback Deals Available Now

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By on 9 July, 2020 | Read more by this author

Some P2P lending sites currently offer attractive cashback deals for new lenders of up to £4,000. At the bottom of this article, you'll also see a less generous cashback deal is available to existing lenders at the moment.

A P2P lending site should convincingly pass a lot of tests before you trust it with your money.

Accepting cashback bribe with your ordinary peer-to-peer lending accounts or your IFISAs is usually way, way down at the bottom of that checklist. You want to assess the risks first and the interest rate compared to the risks.

After you have done that, you can then look at nice-to-haves, such as cashback.

P2P and IFISA cashback currently up to £4,000

Cashback is often a cheap gimmick, but sometimes the reward makes a substantial difference after you have narrowed your list of P2P lending sites down using more important criteria based on risk control and interest rates.

My appetite gets whetted at around 2% cashback or above, or £100 per £5,000 you lend, but some deals can lead to ten times that amount.

Sometimes, P2P lending sites offer 4thWay users exclusively high cashback, because we (well, maybe not me personally, but many of you) have a reputation of having deep pockets and lending a lot of money. Yet we still don't normally have to lend vast amounts to take advantage of those cashback deals.

No low-budget deals at present

Currently, there are no cashback offers for anyone wanting to lend less than £1,000. This is unusual, so do check back here occasionally if you're on a lower budget. We'll also notify our email subscribers when there are new deals that are worth noting.

P2P Lending Cashback and IFISA Cashback Deals Summary

P2P Lending Company Link to review Cashback Details Cashback Link
RateSetter Logo, in P2P Lending Cashback RateSetter Review
  • £100 cashback
  • £1,000 min lend
  • New lenders only
  • P2P account and IFISA

 

Get more details

RateSetter cashback*
Visit rebuildingsociety No review yet
  • £25 cashback
  • £1,000 min lend
  • New lenders only
  • Additional £50 cashback when you have lent £10,000
  • P2P account and IFISA

 

Get more details

Rebuildingsociety cashback*
Kuflink Logo, in P2P Lending Cashback Kuflink Review
  • £25-£4,000 cashback
  • £1,000 min lend
  • New lenders only
  • P2P account and IFISA

 

Get more details

Kuflink cashback

RateSetter (P2P lending accounts and IFISAs)

New lenders only: £100 cashback if you lend at least £1,000 for one year.

If you lend £1,000, this deal works out at cashback 10%. The more you lend, the lower the percentage, because the cashback is fixed at £100. For example, if you lend £5,000, the cashback of £100 works out at 2%, which is still a good bonus.

The cashback is on top of earning interest rates of up to 2.0%. You can split your lending between different RateSetter accounts, if you want, although the Max Account, paying the highest rates, is currently the only account that really makes sense for lenders in terms of interest rates, risks and withdrawal speed.

If you want to lend through RateSetter's ISA, you can lend new ISA money or transfer in from other cash ISA, share ISA or IFISA providers, or you can do both.

You will receive your cashback, paid into your RateSetter account, within 30 days.

You can check it out on this RateSetter web page*. Read about RateSetter in our expert RateSetter Review.

Rebuildingsociety (P2P lending account and IFISA)

New lenders only: £25 cashback if you lend at least £1,000 for one year when clicking through 4thWay.

If you open a Rebuildingsociety account after clicking through 4thWay, you'll earn £25 when you lend £1,000, which is the equivalent of 2.5%.

The cashback is on top of earning a double digit interest rate before bad debts.

Once you have lent £10,000, you'll earn another £50. The total cashback (£25+£50) then works out at 0.75%. Rebuildingsociety hasn't specified any other conditions for earning this cashback.

Rebuildingsociety has some other cashback schemes running that you can earn on top:

You get an additional 0.5% when lending to businesses that are local to you, although I don't think you can expect there to be too many of those at present.

You earn a 5% annual cashback rate on any money that you pledge to lend prior to the loan being fully funded. In other words, you're earning interest before your money is actually lent to the borrower. That is an annualised rate, so if you lend £100 you won't earn a full £5, because it won't take a full year for the loan to get fully funded. This cashback scheme only is time limited, running on all loans listed before 30th June 2020.

Visit Rebuildingsociety* through this link to automatically earn the cashback when you lend your first £1,000.

New lenders only: £25-£4,000 cashback if you lend over £1,000 for a year. Start lending within eight weeks and lend for one year to qualify.

Again, this offer is unusually generous in this industry:

  • Lend £1,000-£5,000 and you get 2.5% cashback (that would be £25 if you lend £1,000 or £125 if you lend £5,000.
  • Lend over £5,000 for 3% cashback (so if you lend £10,000 that's £300 cashback.
  • Lend over £25,000 for 3.5% cashback (so if you lend £30,000 that's £1,050 cashback).
  • Lend over £50,000 for 3.75% cashback (so on lending £60,000 that's £2,250 cashback).
  • Lend £100,000 or more for £4,000 cashback (so that's 4% if you lend £100,000 or equivalent of 2% if you lend £200,000).

Kuflink's cashback applies if you lend for 12 months. If you lend in loans shorter than 12 months, you have one month to re-lend your money.

You can't sell your loans to other lenders on the secondary market in that time. Nor will you earn the cashback if you use it to buy loans on the secondary market. They must be brand new Kuflink loans or lent through the automated lending account.

The cashback deal applies even when you're transferring money in from other ISAs, such as cash ISAs, share ISAs or other IFISAs.

Please pay attention to this term so that you don't get caught out:

  • You need to lend all the money you want to earn cashback on within a 14-day period. For example, if you lend £500 to begin with, you have 14 days hours to lend another £500 or more to start earning some cashback.

The cashback is on top of earning interest rates of up to 7.2%.

You can lend new ISA money or transfer in from other cash ISA, share ISA or IFISA providers, or you can do both.

You will receive your cashback, paid into your Kuflink account or IFISA, after 12 months of investing.

Kuflink currently has no time limit on this offer.

You can check out the Kuflink cashback in Kuflink's terms and conditions page by scrolling down to “part 6”. Or read about Kuflink in our expert Kuflink Review.

Other cashback deals

The above are unusually generous, but I like to note other, less generous but still notable deals here, when they are available.

At present, there's just one worth noting from Loanpad, which changed its terms on the 6th July, 2020 to be less generous. The main reason is probably that the risk-reward balance is already excellent even without the cashback.

New lenders can now earn £50 for lending at least £5,000 and £100 for lending at least £10,000. Both tiers are the equivalent of up to 1% cashback.

You need to lend start lending within four weeks of registering. You'll be paid your cashback in one year and two weeks, but you must keep lending for that year to qualify.

To get the cashback, open an account through this link* and use the cashback code “WB620” when signing up.

Read about Loanpad in our expert Loanpad Review.

Before you choose P2P lending accounts or IFISAs based on cashback, please check out the many guides in our Learn page.

Independent opinion: the opinions expressed are those of the author(s) and not held by 4thWay. 4thWay is not regulated by the ESMA or the FCA, and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.

All the specialists and researchers 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 Assetz Capital, Loanpad, RateSetter and Rebuildingsociety, 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.

6 responses to “P2P Lending And IFISA Cashback Deals Available Now”

  1. Janos Ratkai says:

    Hi
    https://www.growthstreet.co.uk/investing/isa
    Growth Street does already have IFISA. Please correct.

    • Neil Faulkner says:

      Thank you. Growth Street does not have a P2P IFISA, but another kind of IFISA. But we’ll make that clear on here.

  2. Janos Ratkai says:

    Growth Street writes “Invest in a diversified portfolio of UK SMEs through a Growth Street ISA”. You write “you are lending to a single borrower, Growth Street itself, rather than lending directly to multiple borrowers”. The word “directly” seems to be the solution of the seeming contradiction, but their wording still sounds misleading.

    • Neil Faulkner says:

      A quick update on the Growth Street ISA, since there has been a few comments on it.

      Growth Street has provided more details about how it is structured, and it does indeed pass 4thWay’s definition of P2P lending after all. There are lots of ways to legally structure loans and Growth Street is the first to do so precisely in this way.

      Peer-to-peer lending is not a regulated phrase. Here’s 4thWay’s definition of peer-to-peer lending:

      Peer-to-peer lending is lending to business borrowers, property owners or individuals through a peer-to-peer lending platform – a website where you can buy or sell loans.

      A key defining feature is that a peer-to-peer lending platform is not allowed to use your cash, lent money, repayments or interest for its own purposes.

      If the peer-to-peer lending platform owes any person or business money, those parties are not able to have your money diverted to them in order to pay off the platform’s debts.

      So, a P2P lending site can’t spend your money on advertising – or to keep a sinking ship afloat if its own business is struggling. Nor can it repay its Barclays Bank loan with the loan repayments due to you.

      In the event it goes out of business, administrators will be obliged to ensure that repayments from borrowers go back to you.

  3. Puledi Real says:

    Hi there,

    How does the following promotion work for Kufflinks:
    “Note that if you self-select loans and lend entirely in loans lasting six months only, the cashback is more like the equivalent of up to 20%!”

    Is this part of the sign up deal, or are there further cashback deals inside?

    • Neil Faulkner says:

      Hi, good question.

      So the point is that if you have to lend for a whole year, the cashback is the equivalent of up to 10%. £50 is 10% of £500.

      However, if you are just lending for half the time, you earn the money in half the time and can therefore re-lend it, possibly by lending it in another cashback deal elsewhere, thus earning more money in a shorter space of time.

      If you recall your maths days, this means that as it is half the time it is the equivalent of twice the interest rate, so 20%.

      To make it more clear why we have that distinction: imagine if you earned £50 cashback after you have lent your money for 10 years? That sounds far less attractive, which is why you work out the cashback in a percentage way that factors in the time you have been lending.

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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 “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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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

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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

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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 “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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