The peer-to-peer lending sector is a confusing and diverse market to navigate. It can be tough sometimes to tell your Funding Circle from your FundingSecure – or your LendingCrowd from your Lending Works.

So, to help you find your way, here’s our quick comparison of some of the bigger brands out there – Zopa, Ratesetter and Funding Circle – and Octopus Choice.

You should note that all rates stated are target rates only, and are not guaranteed. Also, any money invested in peer-to-peer loans is put at risk, and it's possible you won't get back as much as you put in. All data is correct at the time of writing.

Octopus Choice

Rate: annual target rate of 4% (variable). Although remember, interest is not guaranteed.

Borrowers: property borrowers

Secured/ unsecured: all loans available through Octopus Choice are secured on property.

Term: none. You can request a withdrawal at anytime, and we’ll do our best to sell your loans to other users as quickly as we can.

Minimum investment: £10

Do they have an ISA? Yes – you can target returns of 4% in the Octopus Choice ISA. You should know that the Octopus Choice ISA isn't a flexible ISA. Any withdrawals that you make from this year's money will still count towards your ISA allowance. Tax treatment is subject to change and depends on individual circumstances.

Amount lent so far: over £235 million


Rate: 4% or 4.6% target interest, depending on how much risk you want to take.

Borrowers: individuals looking for a personal loan

Secured or unsecured: Unsecured

Term: no minimum term, however Zopa will charge you 1% if you want to sell your loans. There’s no fee to withdraw your interest.

Minimum investment: there’s a minimum investment of £10 for its easy access account, however Zopa will require you to invest at least £1,000 for its riskier, higher interest products.

Do they have an ISA? Yes. You can invest in a Zopa ISA and target returns of either 4% or 4.6%.

Amount lent so far: £3.22 billion



Rate: this depends on term. You can target 2.6% in an instant access account, or rates of 2.7% and 5.2% if you lock your money away for one or five years, respectively.

Borrowers: can be both personal or business borrowers.

Secured/ unsecured: the majority of Ratesetter loans are unsecured, however they do also make secured business loans.

Term: there’s no fees to withdraw from Ratesetter’s easy access account, however you will be charged to withdraw early from its one or five-year accounts.

Minimum investment: £10

Do they have an ISA? You can earn up to 5% in the Ratesetter innovative finance ISA.

Amount lent so far: £2.29 billion

Funding Circle

Rate: you can target 4.8% in Funding Circle’s ‘conservative’ account, or if you want to take on more risk there’s a target rate of 7.2% in the ‘balanced’ account.

Borrowers: businesses

Secured/ unsecured: can be either secured or unsecured

Term: there is no term. When you want to withdraw, you have to sell your loan parts to other users, on what it calls the Funding Circle secondary market.

Minimum investment: £1,000

Do they have an ISA? Yes. The Funding Circle ISA allows you to target either 7.2% or 4.8% interest.

Amount lent so far: £3.1 billion