If you already make full use of your Cash ISA and Stocks & Shares ISA, it’s normal to start looking for something a little different. Not instead of those options, but alongside them. That’s where an IFISA can start to make sense.

This article looks at IFISAs through the lens of easyMoney, the provider we’ve chosen to use ourselves.

Where an IFISA fits for experienced ISA users

An Innovative Finance ISA sits between saving and investing. Your money isn’t held as cash, and it isn’t invested in shares. Instead, it’s lent out through a regulated platform in return for interest, all within a tax-free ISA wrapper.

For people who already use their Cash ISA for stability and their Stocks & Shares ISA for growth, an IFISA can offer a third option – one that aims for higher returns than cash, without the day-to-day volatility of the stock market.

What easyMoney actually does

easyMoney is a peer-to-peer lending platform that focuses on property-backed loans. Rather than lending to consumers, the money placed into the IFISA is used to fund loans secured against UK property.

Each loan is backed by a tangible asset, with conservative loan-to-value ratios designed to reduce risk. The focus is on capital preservation first, with returns coming second.

Importantly, easyMoney does not lend speculatively or unsecured.

The app and how you manage your money

easyMoney is managed through a straightforward app, which allows you to invest, monitor returns, and request withdrawals. You can see how your money is allocated and track interest as it accrues, without needing to actively manage individual loans.

For people used to ISA platforms already, the experience will feel familiar rather than complicated.

Interest rates and returns

Interest rates on easyMoney’s IFISA are higher than most easy-access savings accounts, reflecting the additional risk involved. Returns are paid within the ISA wrapper, meaning any interest earned is free from income tax.

This makes it particularly relevant for people who have already used their ISA allowances elsewhere and want tax-efficient returns without increasing exposure to equities.

Access to your money

One of the standout features of easyMoney is the easy-access nature of the product. While the underlying loans are longer term, the platform allows investors to request withdrawals, subject to liquidity and platform conditions.

This doesn’t make it instant access in the same way as a savings account, but it does offer far more flexibility than many fixed or locked-in alternatives. It’s designed to be accessible, without encouraging short-term thinking.

Understanding the risk properly

This is not a savings account. Money invested in an IFISA is not covered by the Financial Services Compensation Scheme. If borrowers were unable to repay and property values fell significantly, you could lose money.

That said, risk should be understood, not ignored. To date, easyMoney has not experienced a single loan default, which reflects its cautious lending approach and asset-backed model. Past performance isn’t a guarantee of future results, but track record does matter.

This is a calculated risk, not a blind one.

Who this is actually for

An IFISA like easyMoney’s is not a first step. It’s best suited to people who already have cash savings in place, are comfortable with their Stocks & Shares ISA exposure, and are looking to diversify within a tax-free wrapper.

If you value certainty above all else, cash will always be the better choice. If you’re looking for something different, but still grounded and structured, an IFISA can be worth understanding.

Final thought

easyMoney doesn’t replace a Cash ISA or a Stocks & Shares ISA. It sits alongside them. For the right person, it adds another layer, one that offers tax-free income, asset-backed lending, and a different kind of risk profile.

As always, clarity matters more than chasing returns. If you understand what you’re using, and why, you’re already doing better than most.