Zopa Bank launches next-generation savings account earning up to 1.05% AER

By Joy Dumasia

Zopa has launched the next generation; cutting-edge savings account to help Brits better save in a post-pandemic world by tapping into the £225 billion (1) stockpile of “dead money” sitting idle.

As a base, the Zopa “Smart Saver” offers a 0.72% return for immediate access to savings, which is 72 x the standard high street offering (2). Customers can then choose to “boost” their rates up to 1.05% by locking their money away for longer with a notice functionality. 

This is the highest return for equivalent accounts currently available on the market.

For the first time, the Zopa “Smart Saver” also enables customers to have multiple saving Pots at different interest rates and with varying access requirements, all in one place, balancing ease of access and interest rate from a single dashboard.

The account offers faster payments, mobile servicing, and no financial penalties for withdrawals. It is FSCS protected and mobile-only, offering younger customers great value without compromising ease of access at the beginning of their saving journeys.

To access funds in a boosted Pot, users need to provide:

• Notice of 7 days for the Boost7 Potearning 0.75% AER – No 1 on the market
• Notice of 31 days for the Boost31 Pot earning 0.85%, AER – No 1 on the market
• Notice of 95 days for the Boost95 Potearning 1.05% AER – No 1 on the market

The innovative “booster” feature was introduced to address unmet user needs identified in Zopa research (3). 

Customer insights showed that while 8 out of 10 adults under 30 want to organise their savings based on what they’re saving towards, unlike current accounts, most savings accounts do not have a Pot functionality. A similarly large majority wants to create barriers and limitations on accessing portions of their savings to stop themselves dipping into savings for spending. 

Merve Ferrero, Chief Strategy Officer at Zopa, said: “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. At the same time, it gives users control over how and when they access their money based on their goals. And we’re only getting started. Over the next 12 months, we plan on doubling our savings portfolio to £2 billion while continuing to find innovative ways to help our customers grow their savings.”