Zopa will pass on the full base rate rise to lenders

Zopa lenders with money waiting to be lent out to borrowers will enjoy the full benefit of the Bank of England’s base rate rise as of midnight tonight.

Zopa (zopa.com) - the world’s first marketplace where people meet to lend and borrow money – is pleased to confirm that the rate of interest paid on lender’s holding accounts, before their money is taken up by borrowers, will move up by the full 0.25% increase made today by the Bank of England. This will put the holding account interest rate at Zopa up to 4.50%.

James Alexander, co-founder and CEO of Zopa said, “Although we know that lenders come to Zopa to secure returns well in excess of deposit account interest, we still think it is important to ensure that their money gets a decent rate of return while it is waiting to be lent to Zopa borrowers. That is why we are passing on today’s base rate increase - in full - as soon as we can. It would be nice to see all the banks take the same approach for the benefit of their customers, but I am not holding my breath!”