Zopa Adds to Competition in the Savings Market | moneyfacts.co.uk

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Michael Brown

Content Writer
Published: 24/02/2022

The digital bank now offers a Smart Saver account which gives customers access to their market-leading notice rates.

Zopa has launched its new Smart Saver account yesterday, which pays 0.72% interest monthly on its no notice account.

“The Zopa Smart Saver combines the best of both banking and fintech when it comes to helping customers save money. By building on the foundations of the easy access account but evolving it, Zopa offers a higher interest rate in a sustainable manner,” said Merve Ferrero, Chief Strategy Officer at Zopa.

Significantly, customers will be given the chance to open a “boosted account” with the digital bank which provides notice accounts at market-leading rates. These accounts come in the form of seven, 31, or 95 days’ notice periods, with the longer notice period offering a higher rate.

Although Zopa imposed a maximum investment of £15,000 on its product, it should not be a cause for concern for investors, said James Blower, Head of Digital at Moneyfacts.

“This looks simply like a way for Zopa to attract savers with smaller balances, who will actively use their savings app, rather than savers with larger sums who are solely looking to place one large deposit for a period of time,” he explained.

Moneyfacts has awarded Zopa’s Smart Saver account an excellent rating.

How does Zopa compare?

Compared to no notice accounts, Zopa’s 0.72% interest is still beaten by Atom Bank and Shawbrook Bank, according to our data.

Atom Bank leads the way with a 0.75% Annual Equivalent Rate (AER) while Shawbrook Bank stays in second, matching Zopa’s 0.72% AER. Shawbrook, however, has a much larger maximum investment of £85,000.

Zopa’s boosted pots  rates are market-leading. For a seven day notice account, its users will benefit from 0.75% AER, for 31 day accounts you would gain 0.85% AER, and for 95 days notice accounts consumers would receive 1.05% AER.

“Zopa’s rates across the boosted pots are the highest paying, for their notice period, in the market. They are therefore very attractive for savers looking to switch savings provider,” said Blower.

If you are considering opening a notice account, our charts will provide you with up to date rates on the market.

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