Zopa and Tandem launch best buy easy-access savings rates

Digital-only banks are at the forefront of instant savings rates, with Tandem and Zopa both launching new best buys.

Earlier today, Zopa Bank raised interest rates on her easily accessible Smart Saver to 3.21 percentwhile Tandembank raised her instant access account to 3.2 percent on Friday.

Both accounts allow savers to withdraw money without any restrictions, potentially making them more attractive than some of the other best buys, which you can check out in our easily accessible savings account charts.

Zopa also allows savers to increase their rate to 3.47 percent by tying money for longer, through a selection of linked withdrawal accounts.

Although Yorkshire BS pays a higher 3.35 per cent Rainy Day account, this is only paid on the first £5,000 and withdrawals can only be made on two days a year. Anyone with a balance of more than £5,000 earns a lower 2.85 per cent.

Similarly, Coventry Building Society launched a new one last week Limited access account pays 3.1 percent. However, the account only offers six penalty-free withdrawals per year.

Any additional withdrawals are subject to a fee equal to 50 days interest on the amount withdrawn.

Unlike some of the best deals that make up This is Money’s best buy savings charts, Zopa and Tandem have a track record of passing rate increases to existing customers, meaning they do that rare thing to encourage loyalty reward rather than punish.

A number of banks and building societies are guilty of creating new issues when they raise rates, giving customers who have signed older issues lower rates.

Of the providers currently paying 3% or more, Coventry BS, Yorkshire BS, Aldermore bank, Al Rayan bank and Sainsbury’s bank are all guilty of this.

One element that savers will have to get to grips with, however, is that both Tandem and Zopa are completely app-only. This means opening and managing an account using only a smartphone.

Savings boost: Zopa’s easy access rate is 3.21%, but savers can increase their rate to 3.47% by extending their lock.

Zopa or Tandem?

Since launching as a bank in 2020, Zopa has attracted £3 billion in deposits. It is no longer a peer-to-peer platform, but a fully authorized and regulated bank, offering savers FSCS protection of up to £85,000 per person.

Zopa also offers one of the best app-based banking experiences.

This is Money recently tested seven savings apps and Zopa came out on top.

The sign-up process only takes a few minutes, and from then on, logging into the app requires either a fingerprint scan or a six-digit passcode.

It takes up to two hours to transfer money in and out of Zopa, but most transfers take around 20 minutes.

Savers can get started with the easily accessible deal by transferring just £1 and can raise up to a maximum of £85,000.

Someone who deposits £10,000 into Zopa’s 3.21 per cent deal can expect an annual return of £321 in interest – albeit if the rate remains the same.

Instant access: Tandem pays 3.2% and does not place restrictions on the number of withdrawals like many savings providers.

Launched in 2014, Tandem is a fully licensed UK bank with a strong fintech banking platform serving over 270,000 clients. Like Zopa, savers have FSCS protection up to £85,000 per person.

Tandem Bank also made our roundup of the best app-based savings apps, scoring 4.3 out of 5 on the Apple App Store.

Signing up took a little longer than with Zopa. It asked for a few extra details like job type and salary.

Adding and withdrawing money is quick and easy, via open banking or bank transfer.

In most cases the money will be in your account within 2 hours, but sometimes it can take up to 24 hours before it arrives.

There is no minimum deposit to open Tandem’s instant entry deal and after that savers are free to save up to £250,000.

It’s worth noting that while savers can get 3.2 percent with Tandem, it requires them to increase their returns through a bonus rate of 0.35 percentage points over 12 months.