The digital bank is aiming to make the billions of “zombie money” in current accounts work harder in its two savings accounts.
Two years after launching, Zopa Bank has crossed the £2bn deposit mark.
The digital bank has seen its volume of deposits double in just the last seven months, and is now one of the fastest challenger banks to reach the milestone.
It has more than £1.5bn of loans on its balance sheet, issued 350,000 credit cards and tripled its revenue per customer.
Aiming to transform the billions of pounds of “zombie money” sitting idle in UK current accounts, Zopa has two saving account options.
They have already topped the tables around 20 times, helped by an increase in both its easy access and notice interest rates.
“High street banks are not incentivised to offer competitive rates given their business model limitations,” a spokesperson at Zopa told AltFi.
“However, customers don't always have the time and visibility of their options to maximise the interest they can get in market. This leads to the inertia we have traditionally seen in the UK savings market.”
They said Zopa’s products are structured around “increased fairness, ease and value”, and that the attractive returns on savings have become a lot more relevant in today’s environment.
It is targeted at users at the start of their savings journeys and has now amassed £850m in seven months.
According to Zopa, it will help Brits save more effectively post-pandemic by making better use of the £225bn sitting in current accounts, allowing users to distribute money between “pots” with different interest rates and access requirements.
The Fixed Term Savings (FTS) account allows users to set aside a lump sum and with a fixed interest rate for the full term of one to five years.
FTS has attracted £1.15bn over the past 24 months.
According to the bank, savers can now earn up to 180 times as much interest with best buy Easy Access savings rates such as Zopa's.