You are here: Home - Saving & Banking - News -

Zopa launches fixed rate savings accounts

Written by: Emma Lunn
Savers can lock their money away for one to five years, and earn up to 1.3% interest.

Peer-to-peer lender Zopa has launched a range of fixed savings products after being granted a banking licence in June.

Although the new savings accounts offered by Zopa aren’t best buys, they are still competitive.

The accounts can only be opened and managed online or via mobile app and require a minimum deposit of £1,000.

The rates are:

  • 1 Year Fixed Term Savings, paying 1.05% AER
  • 2 Year Fixed Term Savings, paying 1.15% AER
  • 3 Year Fixed Term Savings, paying 1.26% AER
  • 4 Year Fixed Term Savings, paying 1.26% AER
  • 5 Year Fixed Term Savings, paying 1.3% AER

Zopa has been offering fixed term savings to existing Zopa peer-to-peer investors since June, but the new accounts are available to everyone.

Zopa was originally founded as a peer-to-peer lender but now operates as a digital bank.

Its banking licence means its savings products are protected under the Financial Services Compensation Scheme (FSCS), which protects balances of up to £85,000 per person per banking licence.

Jaidev Janardana, CEO at Zopa, said: “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.”

The best one-year fixed rate bond on the market is from Paragon Bank which pays 1.2% AER. The top-paying five-year bond is from BLME and pays 1.4%.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Government won’t extend furlough for high-risk people

The government confirmed it won’t extend the furlough scheme for those considered high risk or clinically extremely vulnerable in answer...