Zopa Bank Deposits £3bn At The Highest Interest Rates Since 2008

In addition to its expanding deposit base, Zopa has more than £2.5 billion in loans and 350,000 credit card users on its balance sheet.

A corporate update states that deposits at Zopa Bank have reached £3 billion.

Today, the bank is almost three years old and has 850,000 clients. They have opened 150 000 consumer savings accounts together.

In 2020, Zopa—the first peer-to-peer lender in history when it debuted in 2005—became a bank. Since then, as competition in the savings market has been hotter, it has quickly drawn depositors with attractive cash rates.

Because of the Bank of England’s interest rate increase to 3.5% in December, which forced banks to compete for client cash, savers whose rising prices have hurt are beginning to feel some comfort.

In less than 11 months, £2 billion has been deposited into Zopa’s “Smart Saver” account, which offers 2.86% AER for its fast access option and up to 3.26% for upgraded accounts with a 95-day notice period.

With it taking six months to achieve £1 billion for this account and just over four months to reach £2 billion, the bank’s rate of growth in deposits likewise appears to be accelerating. The “boosted” pots in Smart Saver account for more than half of all money.

Since its introduction 30 months ago, Zopa’s fixed-term savings account has accumulated £1 billion in client funds and is offering 4.5% AER for five years.

Merve Ferrero, Chief Strategy Officer at Zopa, said: “This is an important milestone that reinforces our belief that our proposition centred around fairly priced credit and attractive returns on savings has become much more relevant in today’s environment.”

“Our fresh take on the saving needs of UK consumers drives every aspect of product innovation at Zopa. Savers should look for value and consider savings options that combine a high-interest rate, good service, flexibility, and tools to manage their money instantly with a few taps from their smartphones,” Ferrero said.

In addition to its expanding deposit base, Zopa has more than £2.5 billion in loans and 350,000 credit card users on its balance sheet.