Zopa Offers 7.10% AER on Regular Savings Account

Strategic Insights -

Zopa, the digital bank, is now offering an impressive 7.10% Annual Equivalent Rate (AER) on its regular savings account, allowing savers to deposit up to £300 each month, with a total maximum deposit of £3,600 over 12 months. At the specified rate, a max £3,600 deposit would earn around an estimated £137 in interest, bringing the total account balance to approximately £3,737 at the end of the term. Unlike most other typical savings accounts, Zopa's offer permits withdrawals at any time without penalty, but any money withdrawn can only be replaced up to the monthly limit of £300.

Key Takeaways:

  • Zopa's regular savings account offers a 7.10% AER, one of the highest rates in the market, allowing savers to deposit up to £300 each month, with a total maximum deposit of £3,600 over 12 months.
  • The account converts to an Easy Access account with a 3.5% rate after the 12-month term, but customers can then open a new Regular Saver account to continue earning the higher rate.
  • Zopa's account has no minimum deposit needed, but customers must have a Zopa bank account and a Smart Saver account first, with a minimum deposit of just £1 required for the latter.
  • Withdrawals can be made at any time without penalty, but only up to the monthly limit of £300.
  • The account is available to applicants who are 18 or over, UK residents, and have both the Zopa bank and Smart Saver accounts.
  • Principality Building Society offers a 7.5% AER on a regular savings account with a 6-month term, allowing savers to invest up to £200 per month.
  • First Direct offers a 7% AER on a regular savings account with a 12-month term, with a higher monthly deposit limit of £300.
  • Other providers offering competitive interest rates on regular accounts include The Co-Operative Bank with a 7% AER, Nationwide Building Society with a 6.5% AER, and Lloyds Bank with a 6.25% AER on its Club Lloyds account.

Statistics:

  • Zopa's regular savings account offers a 7.10% AER with a maximum deposit of £3,600 over 12 months.
  • Principality Building Society's regular savings account has a 7.5% AER with a 6-month term, allowing a maximum investment of £200 per month.
  • First Direct's regular savings account has a 7% AER with a 12-month term, allowing a maximum deposit of £3,600 over the course of a year.
  • Zopa's account would earn an estimated £137 in interest on a max £3,600 deposit, bringing the total account balance to approximately £3,737 at the end of the term.
  • Principality Building Society's account would earn a final balance of £1,227.53, including £27.53 in interest, after the 6-month term.
  • First Direct's account would earn a final balance of £3,736.50, including £136.50 in interest, after the 12-month term.

Sources:

  • [Express](https://www.express.co.uk/money/personalfinance/1566549/best-regular-savings-accounts-everyone)
  • [Zopa](https://www.zopa.com/personal-savings)
  • [Zopa's Regular Saver account](https://www.zopa.com/personal-savings/regular-saver)
  • [Principality Building Society](https://www.principality.co.uk/personal/savings/regular-savings)
  • [First Direct](https://www.firstdirect.com/help-and-support/help-and-guides/everything-you-need-to-know-about-first-direct-regular-saver)
  • [The Co-Operative Bank](https://www.co-operativebank.co.uk/personal-savings/regular-saver)
  • [Nationwide Building Society](https://www.nationwide.co.uk/savings/saving-accounts/regular-savings)
  • [Lloyds Bank](https://www.lloydsbank.co.uk/clublloyds)