Zopa tops easy access with 1% rate
It's been some time coming but easy access rates have finally hit 1%. Zopa has increased the rate on its Smart Saver account to 1% this morning, to become the first provider (which doesn't require a current account to be opened) to offer the psychologically important savings rate. Not since NS&I cut the rate on its Income Bonds in November 2020 has an easy access savings account paid 1%.
The account is primarily targeting younger savers starting their savings journey, with it only available via Zopa's mobile app and coming with a limit of £15,000. Smart Saver can be opened with just £1 and comes with up to 20 savings pots, which savers can use to save for specific purposes. There is also the option to open 'boost' pots with higher rates, in return for providing notice. Boost 7 pays 1.05% for 7 Days' Notice, Boost 31 offers 1.15% for 31 Days' Notice and Boost 95 gives 1.25% for 95 Days' Notice - all rates which are currently market leading for their notice term.
Zopa launched its Smart Saver account in February 2022 and has since attracted almost 10,000 savers depositing £8m - these savers will automatically benefit from the increased rates. Zopa also announced in January this year that it had gone through the £1bn savings milestone, less than 18 months after launch. These increased rates are likely to give those numbers a significant lift.
The 1% rate beats the previous best - Aldermore's Double Access Saver - which was increased to 0.95% last Friday. However, that is still the best rate for non-mobile app savers and Aldermore's Easy Access Account, which comes with no restrictions, offers a very attractive rate of 0.85% too. Both accounts allow up to £1m to be saved.
James Blower, Savings Guru Founder, commented: "The easy access savings market has seen fierce competition this month and it's great for savers that this has pushed rates back to 1%. I expect to see this continue and rates to rise further from here in the coming months."
Savers can find out more about Zopa here