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Zopa launches fixed rate savings accounts

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Written by: Emma Lunn
25/08/2020
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%.

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