Zopa Bank savings accounts’ review

Looking for somewhere to stash your savings? One of the options available in the UK right now is Zopa Bank, which specialises in savings along with loans and credit cards.

To find out if it’s the right option for you, keep reading. We’ve put together a comprehensive review of Zopa Bank savings accounts, looking at interest rates, account types, security and much more.

But if you’re shopping around for a new everyday account, make sure to check out the Wise account from the money services provider Wise. It’s not a bank account but offers many similar features. It lets you send, spend, and convert money in 40+ currencies, and you can get a Wise card for everyday spending in the UK and abroad.

What is Zopa Bank?

Zopa Bank is a UK-based bank launched in 2020. However, it had a life before becoming a fully-fledged bank, as it became the first ever peer-to-peer (P2P) lending company to launch in the UK back in 2005.¹

Unlike some other UK banks, Zopa doesn’t offer current accounts. It focuses its offer on savings accounts, as well as lending products such as loans, credit cards and car finance.

Zopa is an online bank, which means that it doesn’t have any physical high street branches. Instead, customers manage their accounts via online banking and the Zopa mobile banking app.

The company is regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK.¹

Who owns Zopa Bank?

Zopa is an independent bank, currently led by Group CEO and board member Jaidev Janardana. Before joining Zopa in 2014, Janardana worked for US bank Capital One.²

Is Zopa Bank good?

Whether or not Zopa Bank is the right choice for your savings is completely up to you. But there are a couple of indicators that it could be a solid option.

For example, Zopa Bank reviews from previous and current customers are pretty positive. The bank has an ‘Excellent’ rating of 4.5 over on TrustPilot, based on over 22,000 customer reviews.³

It’s also won some awards, including:⁴

• Banking Brand of the Year at the MoneyNet Awards 2022
• Best New Savings Provider, Best Fixed Rate Bond Provider and Best Short Term Fixed Rate Bond Provider at the Savings Champion Awards 2022.

Zopa Bank savings accounts’ review: Quick overview

Now, let’s dive into what Zopa Bank has to offer in terms of savings accounts. Here are all your options at a glance, including what Annual Equivalent Rate (AER) different accounts offer, and their limits:

When does Zopa Bank pay interest on the savings accounts?

For all Zopa’s accounts, interest is paid monthly.⁵ If you have a fixed term account though, you won’t be able to access or withdraw the interest earned until the end of the fixed term period.

Zopa Bank Smart Saver review

The Zopa Bank Smart Saver is a flexible, easy access savings account managed in the Zopa mobile banking app. It lets you organise your money into savings ‘pots’, which you can personalise for particular goals (i.e. saving for a new car).

This includes an instant Access pot, which pays 4.54% AER and gives you anytime access to your cash.⁶

Alternatively, there are Boosted pots, which offer higher rates of interest in return for a notice period before you can withdraw your money. Here are the Zopa interest rates for each:⁶

You can save from £1 to £100,000 with this account. All your money up to £85,000 is protected by the Financial Services Compensation Scheme (FSCS).⁶

The Zopa Bank Smart Saver account is ideal for those who like a little flexibility with their savings account. With easy-to-manage ‘pots’, you get the best of both instant access and notice period accounts all in one. Leave your money in an Access pot if you need it, or move it to a Boosted pot to earn higher interest when you don’t.

Zopa Bank Smart ISA review

The Zopa Bank Smart ISA works in a similar way to the Smart Saver account, except that interest earned is tax-free (up to your personal allowance).

You can create personalised pots to help you save for specific goals. There’s an instant Access pot with a rate of 5.08% AER variable,⁷ or you can lock your money away for a fixed term in exchange for higher rates. Here are your options:⁷

You can open an account with £1 and save up to £100,000 in a Smart ISA, with the same FSCS protection offered to all Zopa savings accounts.⁷

This account is best for those looking for the flexibility to switch between instant access and fixed term savings, but who could also benefit from the tax-free interest provided by an Individual Savings Account (ISA).

Zopa Bank Fixed Term Savings review

Lastly, we come to the Zopa Bank Fixed Term savings account. This account has a fixed interest rate for a fixed period, which ranges from 1 to 5 years. If you’re willing to lock your money away, you could get a higher interest rate compared to an instant access account.

Here are the five different options available:⁸

The minimum deposit for all of the above accounts is £1,000, and you can save a maximum of £250,000 in each. If you have more than one, the maximum you can save overall is £500,000. Bear in mind though that FSCS protection only extends to £85,000.⁸

Once you open an account, you only have 14 days to pay in your money, but interest starts accruing right away.⁸

This account is designed for people who want certainty on interest rates, and are happy to lock their money away for a fixed period. If you’re likely to need access to your cash at short notice, this isn’t the account for you.

Is Zopa Bank safe for your savings?

Zopa Bank is regulated by both the FCA and the PRA in the UK, and all savings are protected up to £85,000 under the Financial Services Compensation Scheme (FSCS).⁹ This means you’re covered up to that amount just in case Zopa should go into administration.

The bank is a member of Cifas, which is the UK’s leading anti-fraud association. It is also registered with the Office of the Information Commissioner.⁹

How to contact Zopa Bank in the UK?

If you have a question about Zopa’s savings accounts or need help opening one, you’ll need to get in touch with the bank’s customer services team.

Here are the details you need:⁹

• Start a chat at Zopa.com or in the Zopa mobile app
• Call 020 7580 6060 - available Monday to Friday, 9am to 6pm.

And that’s about it - everything you need to know about Zopa Bank savings accounts.

There are quite a few of them to choose from, so there’s bound to be an account suitable for every kind of saver. They’re flexible too, letting you move your money between instant access and fixed/notice pots whenever you need to.

After reading this, you should be all set to check Zopa out and see if it’s the right option for you.

Don’t forget that a savings account isn’t the only way to grow your money. Take a look at our guide to the best current accounts with best interest rates in the UK.

Sources used for this article:

Sources checked on 22-Nov-2023.