Zopa, a digital bank and online lender, has published the interest rates affiliated with its savings accounts. According to a note from the Fintech, savers may generate interest from 1.05% to 1.3% – depending on the term.
Zopa’s Fixed Term Savings accounts are available today with terms from 1 to 5 years. Zopa states that savers may set up an account in just four minutes with a minimum deposit of £1000. The accounts are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
Zopa CEO Jaidev Janardana commented on the announcement:
“Today people quite rightly want to know that their savings will deliver a return that helps them make the most of their money. Launching our fixed term savings product delivers the much needed choice and reassurance of rate that consumers are looking for. As a new digital bank, Zopa is using its innovative, agile approach to ensure we bring more choice and competition to people’s financial lives when they need it most. By leveraging our significant technological and financial services expertise we are able to offer good value, straightforward products and intuitive tools to help people manage their money.”
With interest rates at historical lows, Zopa hopes to attract new accounts by providing a higher market return in comparison to the competition.
Zopa became a fully-licensed bank in June with the savings accounts being the first affiliated product. You may expect a growing portfolio of services from the digital bank similar to what other UK based digital banks are offering.
Zopa, the first peer to peer lender to launch in the UK, may also benefit by enabling savers to fund loans as well.
Zopa Bank Limited is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.