The online bank Zopa has launched a market-leading instant access account that also allows savers to lock in some of their money for a fixed-term at a higher interest rate.
The Smart Saver account pays 0.72% on balances from £1 to £15,000 but accountholders can earn up to 1.05% by holding some of their money in linked “pots”.
However, because the account is being targeted at younger customers, it is only available via a mobile phone app.
Customers who pay into the account can create different pots of money for different savings targets, and see them all in one place.
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To get the highest interest rate, they need to “boost” the pot and agree to give 95 days’ notice to make a withdrawal. Two other options are available: a notice period of 31 days and an interest rate of 0.85%, and a seven-day notice period with a rate of 0.75%.
Zopa launched as a peer-to-peer lender, offering savers the chance to make returns by matching them with borrowers who paid them interest.
It closed that part of its business late last year after getting a banking licence, and is offering fixed-rate savings accounts alongside the Smart Saver.
