Zopa deposits hit £1bn after just 18 months as a bank

After repeatedly topping the savings tables over the past year and a half, digital bank Zopa today revealed it’s reached £1bn in customer deposits.

The news comes just 18 months after Zopa was granted its banking licence in June 2020, and began shifting towards a more traditional model of offering savings and borrowings.

This morning Zopa said the milestone would just be the start and “over the next 12 months we plan to double our savings portfolio again to £2bn”.

Part of that growth will come from an upcoming Easy Access savings account, to complement Zopa’s existing range of 1-5 year fixed savings accounts that offer up to 1.75 per cent interest.

Its current rate of 1.36 per cent on a 1 year fixed saver beats rival Atom Bank by a percentage point, while Zopa’s 1.75 per cent on a 5 year fixed saver is beaten by its northern rival by five percentage points at 1.8 per cent with Atom Bank.

Easy access accounts currently pay around 0.6 per cent interest with Marcus, 0.65 per cent with Paragon Bank and 0.67 per cent with Shawbrook Bank.

In December AltFi revealed that Zopa would be winding down P2P platform by the end of this month, as CEO Jaidev Janardana said he was refocusing the business.

Zopa also reached full profitability and is said to be working on an IPO for the final quarter of 2022.