Good news for savers as online bank Zopa increases easy access rate to 1.5%

Martin Lewis provides advice on savings accounts

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Britons can open an account with the bank with a deposit of just £1 and can save up to £50,000 in the account. People are also allowed to withdraw anytime without penalties or fees. The Smart Saver account is app-only and people can only open a new Smart Saver account by downloading the Zopa app. After downloading the app, people will only need to answer a few questions to be able to open an account and start saving.

The challenger bank’s Smart Saver account offers a “unique feature” which allows the person to increase the interest rate they receive.

In return for the extra interest, people need to give notice within the app before they can access your savings.

The longer the notice period, the higher the interest rate.

The boosted pots include a 1.55 percent rate which people need to give a notice period of seven days before they can withdraw any funds.

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A 1.65 percent rate with a notice period of 31 days and 1.85 percent rate with a notice of 95 days.

To create a boost up, people will just need to open an account and tap the option “boost” or “increase boost” inside the account.

From that date onward, money in a boosted pot will then earn a higher interest rate.

People are able to withdraw from the savings pot however they will have to give Zopa notice of when they would like to withdraw the money.

People can do this in the app and will send a notification when the money becomes available.

Once the notice period ends, the boosted pot will become an access pot.

Britons will be able to withdraw their savings or decide to boost again if they want to.

They are also able to open multiple accounts which they can personalise to highlight their savings goals.

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Zopa, which was incorporated in 2005, protects deposits of up to a total of £85,000 by the UK’s deposit guarantee scheme the Financial Services Compensation Scheme (FSCS).

Zopa’s Smart Saver is a market leader offering the highest rate that others offering similar deals.

Cynergy Bank Online Easy Access 51 also offers a minimum deposit of £1 but offers a rate of 1.46 percent, while Principality BS Online Double Access account offers a rate of 1.4 percent.

About the Smart Savers account, Zopa said: “With Smart Saver, you get the flexibility and freedom to store parts of your money away for longer – and in return benefit from Boosted interest – while keeping some on hand for when you need it.”

Zopa also offers savers fixed term savings accounts from one to five years with a fixed rate throughout.

These accounts need a minimum of £1,000 deposit and the interest rates offered range from 2.55 percent for one year, 2.91 percent for two years and 3 percent for three years.

For four years Zopa is offering a fixed rate of 3.05 percent and 3.11 percent for five years.

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