Getting started is easy
Open an account, transfer your money, choose how you want to invest. We'll take care of the rest.
Open an account
You can then transfer money in from your bank.
Choose where you invest
You can change your product later, or split your investment across multiple products. This is just to get you started.
Great if you want to dip into your money occasionally. No fee applies when selling loans.
Great if you're looking to invest for the longer term. A 1% fee applies when selling loans.
Higher projected return in exchange for more risk. A 1% fee applies when selling loans.
*Annualised projected return (capital weighted average loan interest rate minus expected principal loss and any fees)
When you invest your money, your capital is at risk and is not protected by the Financial Services Compensation Scheme (FSCS). Our risk statement has all the details.
We take care of the rest
Once you've selected a product, your money joins the queue and waits to be matched. This can take up to a week (longer in peak times), but typically takes a few days.
Your investment then gets broken down into £10 chunks or up to 1% of the total amount you have invested. Why? So we can spread your money across multiple loans, diversifying your portfolio.
Every month, borrowers pay back capital and interest on your loans. These repayments can be recycled in new loans or withdrawn.
Keeping re-lending on recycles your repayments in the same investment product. Your new loans will always be at our latest rates, meaning that the overall rate on your loan book will evolve over time.
Lending at Zopa is simple; everything happens automatically. Here's how it works...
Your money enters a queue with other lenders to be matched and lent out to approved borrowers. Once it reaches the front, it is split into micro loans of at least £10 to diversify your money.
Each month borrowers make their loan repayments, paying you back a portion of your capital plus interest. Borrowers repay on different days so money is coming into your account throughout the month.
Once you've collected enough repayments to buy a new micro loan your money will be automatically re-lent to new borrowers, so you're now starting to lend and earn money on your interest.
Each micro loan is repaid at a fixed interest rate, but your repayments will buy new micro loans at the latest market rates. This means your rates will evolve with the market as you re-lend.
Withdrawing your money
How and when you access your money is up to you.
- Withdraw your monthly repayments as they are paid back by borrowers.
- Access a lump sum by selling your outstanding loans to other lenders.
Depending on the product you have chosen, you may have to pay a 1% fee to access your money.
Read more about accessing your money or watch our video below:
There are two ways to access your money in Zopa:
You can simply stop re-lending your monthly repayments and withdraw them from Zopa as they come in.
Or, if you want to access more, you can do so by selling your loans to other lenders. Simply choose the amount you want to sell, and we'll handle it for you.
To sell your loans there must be other lenders in the market, which has always been the case, and your loan must be up to date. It usually takes just a few days.
If the market rate for loans has changed since you lent your money, the loan you're selling could be at a lower rate than the buyer would get on a new loan, so you may have to pay a small fee to cover the difference.
Moving between products
It's easy to move money around in Zopa.
Turn off re-lending and allow your repayments to collect within your holding account. Then allocate those funds to a new product. Or, sell your loans and purchase new ones within a new product.
“It is far better than any High Street savings rate in the UK and the money can be accessed in an emergency”— Telegraph