Zopa launches new Smart ISA savings product – AltFi

Digital bank Zopa is adding to its suite of savings products with a Smart ISA.

Current with top-table interest rates, the cash ISA will provide users with a tax-free way to save.

Like the bank’s smart saver account, customers will be able to split their ISA allowance over up to 20 savings ‘pots’, dividing them between immediate ‘easy access’ pots and ‘fixed term’ pots that they can lock in for one to five years with higher interest rates.

Users will be able to save up to £20,000 a year tax-free and manage their account alongside their other Zopa savings options in the app, which include fixed term savings and smart saver.

Currently the access ISA pot has an interest rate of 3 per cent AER, while the fixed term pots range between 4.65 and 4.75 per cent across the one to five year term access options.

It has been a busy quarter for the digital bank, adding two new members to its executive team and a new non-executive director to its board in just the last few weeks. 

They bring a wealth of experience to the bank, notably in the way of public listings.

The digital bank also secured £75m in funding at the top of the year to kick off its mergers and acquisitions for 2023, just weeks later acquiring BNPL DivideBuy and making its first move into the $7.2 trillion embedded finance space.

Though the bank did not disclose its new valuation at the time of the raise, it did say it “markedly enhances” its unicorn status.

To date, the bank has attracted £3.5bn in deposits, has more than £2bn of loans on its balance sheet and issued more than 400,000 credit cards.