Zopa to pass on interest 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 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 4.75%.

James Alexander, co-founder and CEO of Zopa said, “The truth is people with money to lend come to Zopa to get returns much higher than cash deposit account interest, but we still believe it is important that their money enjoys a decent rate of return in that period before it is taken up on our marketplace by Zopa borrowers. That is why we are passing on today’s base rate increase - in full - as soon as we can. Wouldn’t it be nice if all financial services companies worked this way?”