The Zopa IFISA product range will offer customers the same rates as those on its standard lending platform which are as follows:

• 1/2/3 year lending: 3.8% annualised return (pre-tax)
• 4/5 year lending: 5% annualised return (pre-tax).

Its IFISA will also be a Flexible ISA which allows customers to withdraw funds from the account without losing the annual tax-free allowance.

As an example, if you invest £15,240 (the maximum 2015/16 limit), and you then withdraw £5,000, you’ll still be able to top it up by £5,000 to earn tax-free interest.

Investors can also transfer from existing cash and stocks and shares ISAs to Zopa’s IFISA, while retaining their tax-free status.

The peer-to-peer lender said it’s not going to introduce any additional fees or charges on its IFISA range for savers, though for borrowers, they’ll pay a ‘loan servicing fee’.

Zopa, which has lent £1.3bn since it was founded in 2005, added that it’s working on a new range of products that it expects to launch ahead of the IFISA from 6 April, though details are still to come.

Earlier this week, Ratesetter became the first peer-to-peer lender to unveil its IFISA rates.

Innovative Finance ISAs: what you need to know

• This new type of ISA launches in April 2016 and means peer-to-peer investments will be able to be saved within a tax wrapper.
• Peer-to-peer lenders do not fall under the Financial Services Compensation Scheme (FSCS), which protects your money up to £75,000 in the event a firm goes bust.
• Only peer-to-peer lending platforms with a full Financial Conduct Authority will be able to offer customers the new IFISA – Zopa says it expects to receive the permission in the “coming weeks”.

What is peer-to-peer lending?

• Peer-to-peer lending platforms such as RateSetter, Zopa and Funding Circle, match savers who lend money with individuals and businesses who borrow money, cutting out the middle men such as banks.
• The relatively high rates of interest available have made them a popular choice for savers.
• Peer-to-peer lenders lent more than £2.2bn in 2015, according to latest figures from the sector’s industry body, The Peer-to-Peer Finance Association (P2PFA).