Zopa Savings not MSE recommended?

Avian1000

I notice that MSE does not seem to include Zopa in its top rate savings account listings. Does anyone know why? I am concerned as I open a Zopa savings 1 year fixed account about one month ago. My first time posting - please forgive me if this is in the wrong place. Thank you. 

AlanP_2

Zopa is not offering a savings account - something that has no risk to the capital put in.

It is a P2P platform that takes deposits and lends them out to borrowers, with the lenders takling on the risk that some / all of those loans may not be repaid, so capital is at risk.

To compensate for the higher risk being taken the expected return would be higher than the "safe savings" option.

What are you trying to achieve - cpaital protection and a bit of interest, or capital at risk but hopefully a higher return?

Incorrect, please see below and thanks Bowlhead99.

bowlhead99

Avian1000 said:

I notice that MSE does not seem to include Zopa in its top rate savings account listings. Does anyone know why? I am concerned as I open a Zopa savings 1 year fixed account about one month ago. My first time posting - please forgive me if this is in the wrong place. Thank you. 

It lists the top three one-year fixes as Union Bank of India UK, OakNorth Bank and Tandem (each paying 0.95-1.05%) and also mention Al-Rayan as the top Sharia option (1.09%)

For two years, the three top providers all offer 1.2% (again there is a slightly higher Sharia option at 1.26%).
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

Zopa only pays 0.9% for one year, and 1.0% for two years, so is off the pace. Why would it appear in the 'top rate savings account listings' when it doesn't offer the top rates? I don't think you have anything to worry about, because although it's only had its banking license a few months you do have FSCS protection, but it is not the top rate in today's market, which is what MSE are trying to write their articles about. 

AlanP_2 said:

Zopa is not offering a savings account - something that has no risk to the capital put in.

That's a mistake on your part, as they do now offer an FSCS protected savings account.