Why do I need SMS two-factor authentication to open a Fixed Term Savings account?

We care deeply about protecting your personal data here at Zopa. That's why when you open a Fixed Term Savings account with us, you'll need SMS two-factor authentication. Two-factor authentication (2FA) keeps your account safe by adding an extra security check to the login process. This means that even if someone else has your password, they still won't be able to log in to your account. How it works With SMS two-factor authentication enabled, you'll need to enter the following when logging in to your Zopa account: Your Zopa email and password A one-time 6-digit security code sent to your mobile device via text message (SMS)

Do I have to pay tax on my interest?

All UK savings accounts pay you gross interest, which means nothing is taken off for tax. So, depending on your individual circumstances, you may need to declare your earnings to HRMC if they exceed your annual Personal Savings Allowance. For fixed term accounts, you only need to consider paying tax on your earnings in the financial year the fixed term ends.

How long do money transfers take?

It can take up to two hours to transfer money into and out of your savings account, but most transfers take around 20 minutes. We work with another bank to send and receive money, which is why it doesn’t happen straight away.

Why did I receive more money than I withdrew?

Behind the scenes, all the numbers you see on your account actually run to eight decimal places, which allows us to be more accurate when calculating interest. When we move your money between accounts, we round numbers up to whole pence, which is why you might end up with one or two more than you expected.

What is my savings holding account?

When a fixed term account ends, the account closes, and all the money is automatically transferred to your savings holding account. Your savings holding account is designed to temporarily hold your money until you save again in a new fixed term account or withdraw to your bank. It is FSCS protected and pays you some interest at a variable rate. To clarify for our existing peer-to-peer investors, your savings holding account is entirely separate from your investment holding account.

How do I pay money in?

First things first, make sure the bank account you’d like to pay in with has been verified by us. You can double check this in the linked bank accounts section of your savings dashboard – it will look like this example: Get in touch with us if you are struggling to see this Your Fixed Term Savings account is a bank account in your name, with a sort code and unique account number. Head to your verified bank account to set up a new payee with the details. If your bank says it can’t verify the details, it is likely due to a new security check called Confirmation of Payee, Read more about why other banks might not recognise Zopa. We can only accept Faster Payments into this account – BACS or CHAPS won’t currently reach us.

How is interest calculated?

We top up interest daily and pay it into your Fixed Term Savings account once a month. You then start to earn interest on that interest, so each month you earn a little more than the last one until the end of the term. This is known as compound interest.

What happens if the account holder passes away?

In the event an account holder passes away, we will always strive to make the process for managing the account as simple as possible. To make any changes, such as early closure or withdrawals once the fixed term is complete, we’re legally required to obtain a certified copy of the death certificate and the Grant of Probate in the UK or Grant of Confirmation in Scotland. Our customer services team know what’s required to get these and can run you through this process.

My tax residency has changed – what should I do?

Over the course of a Fixed Term Savings account, it’s possible your tax residency status could change. If this happens please let us know as soon as you can. Once confirmed, we’ll have to close your savings account(s) and transfer your money back to you. This will include all the interest you’ve earned up to the point of account closure, and there are no fees or penalties.

If you don't have a branch how do I get help?

You can fire any questions you have at our multi-award winning, London-based customer services team. The most popular way to reach them is via chat. Just log in to your account here or via the app.

How do I open a Fixed Term Savings account?

You can open a Fixed Term Savings account via our website. Simply choose a term to suit you, then follow the steps through to open an account. If you're a new customer, we'll need to know a bit more about you; if you're an existing customer there's only a few questions to answer. That's all there is to it. You can have your account open quicker than it takes to make a brew.

What is a Fixed Term Savings Account?

With a Fixed Term Savings account, everything is 'fixed' –you commit your money for a fixed period of time and get a fixed rate of interest. With the Zopa Fixed Term Savings account you can save from 1 to 5 years. These accounts are very safe as your money is protected by the FSCS (Financial Services Compensation Scheme) up to £85,000. The most important thing to remember about this type of savings account is that you cannot access your money until the end of the agreed term, so you should only consider saving an amount that you know you won’t need until your term is up.

How safe is my money? What is 'FSCS' protection?

As a licensed UK bank, the savings you have with us are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000, even if you have savings elsewhere. FSCS exists to protect customers of finance providers that have failed. In the event of Zopa failing, the FSCS will compensate you if we are unable to pay back your money. You can save more than £85,000 with us, but any money over that amount wouldn't be protected. You can visit the FSCS website here

What does 'AER' mean?

AER stands for 'Annual Equivalent Rate' and represents your actual return each year. The interest rate we apply to your money is called the gross rate. We calculate interest every day and it builds up until we pay it into your account once a month. This allows you to benefit from compound interest, which is where your interest also starts to earn interest, so each month you'll earn slightly more than the last one. The AER takes this into account and is why it’s a little bit higher than the gross rate. Savings accounts can work slightly differently between providers and is why AER exists as it provides a standardised way to compare them easily

Can I open an account by post?

We’re afraid not. We do everything online where it's safer and faster. You can open a Fixed Term Savings account via our website.

Why do you need my bank details when opening an account?

It's part of our commitment to anti-money laundering and your financial safety. All customers must pay in and withdraw with bank accounts that we’ve verified are active, UK based and belong to you.

How do I send you documents?

For any documents we ask to see, we have an upload tool you can use. Simply log in to your Zopa account online, click on your open application and you’ll see it straight away.

Why do you need to see a bank statement?

It's part of our responsibility as a regulated bank to understand where our customers' money is coming from. The bank statement helps us confirm the bank account you've given us is active and belongs to you.

I’m a U.S. citizen or tax resident outside of the UK - can I open an account with you?

Unfortunately, not right now. To open a Fixed Term Savings account with us you must have tax residency only in the UK. This also applies to all U.S. citizens, even if you no longer pay taxes in the U.S.

Why do you need to verify my identity?

It's part of our responsibility as a regulated bank to understand who our customers are. If we can't verify your identity using our electronic checks, we'll ask to see supporting documents.

When my term ends can I start a new one straight away?

Yes, absolutely. We'll reach out to you shortly before the end of your term to let you know your options. Remember, you can have several Fixed Term Savings accounts running at the same time if you’d like to.

When is interest paid?

We add it onto your Fixed Term Savings account each month, on the calendar day your fixed term began. If your fixed term started on the 29th, 30th or 31st of a month, we'll pay interest on the 27th of every month, with a final payment made on the day the term ends.

What do you mean by ‘tax resident’?

We know this is an odd term, but all it really means is where you primarily live and earn income, and therefore where you pay tax. If you live in the UK for six months or more of the financial year and receive an income, then you are a UK tax resident. If your situation is less clear, you can find much more detail on the Government Services and Information website here. You can save with us if: You are a tax resident in the UK only You can’t save with us if: You have dual tax residency with any other country/jurisdiction; or You are a U.S. Citizen

Why do you give me 14 days to pay in?

You might not have all the money you want to save readily available, so to make things easier we give you 14 days to pay in before the fixed term starts on day 15. You can make multiple payments in during the first 14 days, but no more once the Fixed Term has started.

Is a Fixed Term Savings account right for me?

The most important thing to remember about this type of savings account is that you cannot access your money until the end of the agreed term, so you should only consider saving an amount that you know you won’t need until your term is up. As everything is fixed, you’ll know exactly how much interest you’ll earn by the end of your term. Some people find it easier to save when they know their money is stored away and the temptation to spend is removed. Fixed Term Savings tend to offer higher interest rates than other types of savings accounts because you’re committing your money to a term.

Can I extend the paying in window?

The time you have to pay in can’t be extended, but if you don’t reach the minimum savings amount in time you can always open another Fixed Term Savings account. Remember, once you pay in £1,000 or more your money must be committed to the term.

Can I withdraw my money before the end of the term?

No, you won't be able to. The great rates we offer depend on our ability to predict the flow of money into and out of Zopa in future. As you can't withdraw your money early, it's really important you're comfortable locking away your money for the fixed term.

What happens if I change my mind?

It depends on how far you've got with paying money in. If you've paid in £1,000 or more: As soon as you reach the £1,000 minimum your money is committed to the term and only available to you again at the end. If you haven't paid in £1,000: When the paying in window ends, we'll close the Fixed Term Savings account and send anything you did pay in back to your bank.

Can I save regularly?

Not with a Fixed Term Savings account. You can only pay in during the first 14 days and then leave it until the term is complete. The good news is if you want to save more you can always open another Fixed Term Savings account. Why is the minimum I can save £1000? Part of building a strong bank is the ability to balance how much money we take in against the demand for borrowing that money. We've set upper and lower limits for our Fixed Term Savings account, so we know how much money we'll hold overall.

In each Fixed Term Savings account, you can save from £1,000 to £250,000. You can open multiple accounts, with up to £500,000 in total across them all.

Can I save as a business?

Not right now. We only offer Fixed Term Savings accounts for personal use.

When does the term start?

When you open a Fixed Term Savings account, we give you 14 days to pay money in ahead of the fixed term itself. This means the fixed term kicks in on day 15. Once you’ve paid in £1,000 or more your money must be committed to the term. In terms of interest, you start earning that from the moment your money lands in the account, so you could earn up to two weeks of extra interest if you pay in straight away.

Can I open a joint account?

Not right now, but it may be something we offer in future.

How do I make a complaint about my Zopa product?

Please email complaints@zopa.com with details of your complaint. If you can, please use your Zopa-registered email address so we can easily link it to your account. We'll let you know we've got your complaint within one working day, and then investigate and give you an initial response within three working days.

What happens when the term ends?

We'll get in touch with you shortly before the end of the term to give you a heads up. When the term does end, we'll move your money into your savings holding account until you’re ready to withdraw. Rest assured, your savings holding account still offers FSCS protection and will pay you interest too, although it will be at a lower rate than your Fixed Term Savings account.

When do I start earning interest?

We give you 14 days to pay in when you first open a Fixed Term Savings account, and you start to earn interest from the moment your money lands in the account. The interest you build up during this time is added to your balance for the start of the fixed term, so you kick things off with a little boost! Your money will never be sitting idle, so there’s no need to delay paying in.

Why do you need to verify my bank account?

Before you can deposit or withdraw money, we need to check the bank details you’ve given us are for an active UK bank account in your name. Once verified, you’ll be good to go. It’s totally normal and nothing to worry about. We check every customer in the same way.

Can I withdraw interest each month as income?

No, you won’t be able to. Interest is added to your account monthly for the agreed fixed term and this way you'll earn interest on your interest! Only at the end of the fixed term can you withdraw it.

What documents might I need?

As a regulated bank, we must make sure we know who our customers are. Sometimes we ask for documents to support applications, such as: An in-date Passport An in-date Driving Licence A bank or credit card statement, or utility bill dated within the last 3 months

Can I save as an ISA?

Our Fixed Term Savings account is not available as an ISA right now. But all UK taxpayers get an annual Personal Savings Allowance, so depending on your income, you may not need to pay tax on the interest you earn. Find out more about the Personal Savings Allowance here.

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Savings

Find answers to our most frequently asked questions.

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I'm considering saving with Zopa

Why do I need SMS two-factor authentication to open a Fixed Term Savings account?
Do I have to pay tax on my interest?
How long do money transfers take?
Why did I receive more money than I withdrew?
What is my savings holding account?
How do I pay money in?
How is interest calculated?
What happens if the account holder passes away?
My tax residency has changed – what should I do?
If you don't have a branch how do I get help?
How do I open a Fixed Term Savings account?
What is a Fixed Term Savings Account?
How safe is my money? What is 'FSCS' protection?
What does 'AER' mean?
Can I open an account by post?
Why do you need my bank details when opening an account?
How do I send you documents?
Why do you need to see a bank statement?
I’m a U.S. citizen or tax resident outside of the UK - can I open an account with you?
Why do you need to verify my identity?
When my term ends can I start a new one straight away?
When is interest paid?
What do you mean by ‘tax resident’?
Why do you give me 14 days to pay in?
Is a Fixed Term Savings account right for me?
Can I extend the paying in window?
Can I withdraw my money before the end of the term?
What happens if I change my mind?
Can I save regularly?
How much can I save?
Are there any fees to pay?
Can I save as a business?
When does the term start?
Can I open a joint account?
How do I make a complaint about my Zopa product?
What happens when the term ends?
When do I start earning interest?
Why do you need to verify my bank account?
Can I withdraw interest each month as income?
What documents might I need?
Can I save as an ISA?

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