“But it is worth keeping in mind that returns are not guaranteed and their deposit would not be protected under the Financial Services Compensation Scheme (FSCS).
“It’s great to see support for tackling climate change and in a low interest rate environment there may well be savers looking towards alternative ways to grow their savings pot.
“However, it is important investors understand their attitude to risk before they commit.
“Innovative Finance ISAs allow savers to invest using peer-to-peer and earn interest, which is tax-free under the ISA wrapper.
“However, as their capital is at risk, seeking advice would be wise as they are lending out their cash via peer-to-peer for an interest return.”