July 27 2020

Zopa sets out rates for bank savings product

Michael Lloyd Top 3, UK News Zopa, Zopa bank

Zopa Bank has set out the rates for its fixed-term savings account and said existing investors that register interest will receive exclusive products.

Last month the ‘big three’ peer-to-peer lending platform was granted its full UK bank license, which paved the way for the launch of its digital bank later this year. The bank will introduce the Zopa Fixed Term Savings Account, which will be protected by the Financial Services Compensation Scheme (FSCS). The platform said the product was as a result of feedback from investors.

Terms will be from one to five years. One-year terms give an interest rate of 1.1 per cent AER, two-year terms offer 1.4 per cent, three-year terms 1.5 per cent, four-year terms 1.55 per cent and five-year terms offer 1.6 per cent. Interest is fixed and paid into the account monthly.

Zopa said everything will be managed online, it will be quick to set up and investors will have 14 days to pay money in once an account is open.

The platform has offered investors the chance to sign up onto its waiting list to register interest. When Zopa is ready to launch these new products, it will invite these investors to open their accounts at an exclusive rate, the bank said.

“We’re incredibly excited that, with our bank launched, we can now officially invite you to open a Zopa Fixed Term Savings account,” Zopa said in an email to investors.

“That’s right, there’s a new way to grow your money with Zopa, with the backing of FSCS protection up to £85,000.

“Oh, and as a thank you for being part of our journey, we’re also reserving you an exclusive rate.

“We asked you, our investors, what you most wanted to see from Zopa. The answer was pretty emphatic: a fixed term savings account. So, that’s what we went and built. Simple as that.”

Read more: What’s happening at Zopa?