The digital bank has increased both its easy access and notice interest rates.
Zopa has upped its easy access interest rate to 1.81 per cent, moving it into “top table position”.
The digital bank also increased its notice account (95 days) interest rates to 2.05 per cent, putting it second behind Allica Bank, which sits at 2.20 per cent currently.
Zopa’s easy access and notice accounts fall under its Smart Saver offering, which officially launched in February, and provides varying interest rates depending on how frequently customers want access to their funds.
In addition to the 95 day notice account, there is also a 31 day option (currently at 1.95 per cent) and a seven day option (1.85 per cent).
Customers can split their money between a mix of different ‘pots’, combining all types of easy access and notice accounts (which it calls ‘boosted pots’) with different interest rates and access requirements.
Zopa launched the UK’s first “hybrid” savings account to help younger savers “level-up” their finances, and to save better in a post-pandemic world.
It aims to make the most of the £225bn sitting idle in UK current accounts and has so far amassed £266m in deposits.
It managed to reach more than £100m in deposits in just the first 65 days of launching earlier this year.
The increased rates follow the Bank of England’s warning that the UK will fall into a recession this year that could last until late next year.
Interest rates were raised by the most in 27 years to 1.75 per cent, and inflation is now set to exceed 13 per cent.
Rates are changing rapidly in light of the latest announcement, and we will have to wait and see where other banks end up falling on the interest rate rankings.