Digital bank Zopa has launched a “market-leading” easy access savings account offering an interest rate of 4.75% AER. The exclusive savings rate is available to both new and existing customers who open or hold the bank’s Biscuit current account, and deposit £500 per month into it.
This will unlock a 1.50% AER fixed bonus for 12 months on Zopa’s standard variable easy access rate. There’s no monthly cap on how much customers can save, but up to £250,000 can be deposited in total. Withdrawals can be made at any time without penalties.
Easy access accounts are typically more flexible, allowing savers to make payments and withdrawals with minimal restrictions and small opening deposit requirements.
The launch comes as UK inflation remains stubbornly high, reinforcing the need for savers to shop around and find accounts that make their money work harder.
The account can be opened through Zopa’s app, with instant virtual cards giving immediate access to account features.
Commenting on the new deal, Alastair Douglas, CEO of TotallyMoney said: “The new Zopa easy access savings account comes with an inflation-beating rate, and unlike other so called ‘easy access’ accounts, this one comes with no withdrawal restrictions.
“The account comes with a standard variable rate of 3.25%, and if you deposit at least £500 per month, you’ll unlock a bonus 1.5% – bringing it up to 4.75%.”
He continued: “To be eligible for the Zopa savings account, you’ll need to open a current account with the bank. And the good news is that it’s not only free, but it pays 2% cashback on bills up to £1,500 per year, and fee-free foreign spending.”
Mr Douglas added: “If you’re sitting on savings and haven’t moved your money for a while, then it’s more than likely you’ll not be on the best rate. And with inflation still high, your cash could effectively be losing its value. Just remember that loyalty doesn’t pay, but being savvy with your savings can.
“When shopping around, keep an open mind and consider smaller or newer banks. They’ll often offer the best rates, and under the Financial Services Compensation Scheme, you’ll get the same security as you would with any high street bank, protecting up to £85,000 per person and per bank, building society or credit union.”
How does the account compare?
Digital bank Chase places just behind Zopa at the time of writing, with an Annual Equivalent Rate (AER) of 4.5%. The rate includes a 1.95% AER bonus for 12 months. There is no minimum deposit required to open an account, and there are no restrictions on withdrawals.
Customers can own up to 10 interest-earning savings accounts with Chase at a time, which the provider says can help people save towards different goals. Savers aged 18 and over must have a smartphone with a UK mobile number to bank with the provider. They must also be a resident and tax resident of the UK only. Up to £3million can be saved in the account overall.
Sidekick’s Multi Shield account pays an interest rate of 4.48% AER on a minimum deposit of £10,000. The rate includes 1% bonus for six months on deposits between £10,000 to £85,000. A rate of 3.48% AER is paid in deposits that exceed £85,001. There are no restrictions on withdrawals, and savers must be aged 18 and over to launch the account.
Cahoot places just behind with an interest rate of 4.4% AER on its Simple Saver account. There is no minimum deposit to launch, and up to £2million can be saved. Interest is also paid monthly on deposits up to £500,001, and there are no restrictions on withdrawals.