Zopa has unveiled two new best buy, easy access offers – a 5.2% five-year rate and a 4% three-year deal – available for one month only.
In other words, the platform’s five year guaranteed Zopa Rate Promise deal has been bumped up by 0.2% until June 3rd. The shorter term, three year lending product will yield a 4% return, which is down from a previous rate of 4.2%. For some perspective, the current top two-year, fixed-rate savings deal stands at 2.4% from Close Brothers, and you’ll need a minimum of £10,000 to open it. The top five-year plan is 3.1% from Shawbrook – which requires at least £5,000 to open.
Giles Andrews, CEO and Co-Founder of Zopa, commented:
‘Savers are still being hit hard by low interest rates that are yet to rise any time soon.
'Zopa’s 5.2 per cent Rate Promise helps people get their money working harder for them and gives them a guaranteed rate on their savings that are lent during this period. Even better to know is that all lending is protected by our Safeguard fund, and offers the option of monthly repayments to those who need access to their money.'
Ordinarily, Zopa lenders receive a rate of return which is tied to the type of borrowers that they choose to lend to. This rate can move up or down as the borrowers pay off their loans or default. Under the Rate Promise offer, Zopa picks investments on the lender’s behalf. These pay out an average monthly return which amounts to 5.2% annual interest over five years (under this month’s exclusive offer). The monthly returns can either be withdrawn or re-lent by the lenders. Money that is re-lent will not be subject to the 5% rate under the Rate Promise offer. Rate Promise investments are split up and spread across many loans by the platform in order to achieve maximum diversification.
You can find out more details here.