Products explained

Choosing the right product for you.

When you lend your money your capital is at risk and is not protected by FSCS. Our risk statement has all the details.

Zopa access:

Zopa Access

Zopa classic:

Zopa Classic

Zopa plus:

Zopa Plus

Great if you're new to Zopa, or if you want to dip into your money occasionally.

Great if you want to put your money away and leave it to grow.

Great if you're happy lending at Zopa and want a higher return for more risk.

Annualised projected return after expected losses on money lent out

Zopa access:

3.3%

Zopa classic:

4.1%

Zopa plus:

6.5%

Is my money covered by Safeguard?

Zopa access:

Yes

Zopa classic:

Yes

Zopa plus:

No

Zopa access Zopa classic:

Safeguard has been set up to cover expected losses. Our loss expectations are based on our historical loan performance, and assume a similar economic enviroment. It is not a guarantee. Find out more

Zopa plus:

Whilst expected returns are higher so is the anticipated credit risk. Find out more

How do I get my money out?

Zopa access:

0% fee

to sell your loans

Zopa classic:

1% fee

to sell your loans

Zopa plus:

1% fee

to sell your loans

In all our products, you can withdraw your money for free as borrowers repay. To do this you can choose to switch auto-lending off. Borrowers may pay back loans early, and often do.

If you choose to sell your loans to withdraw all, or a lump sum, there needs to be other lenders to buy your loans. To date, this has always been possible but it is not a guarantee. If you sell your loans to another lender, a premium may be charged if your loans are worth less than the open market (for example, if rates for loans have increased). Find out more

Is there a minimum investment?

Zopa access:

£10

but we recommend £1,000

Zopa classic:

£10

but we recommend £1,000

Zopa plus:

£1,000

Who do I lend to?

Zopa access:

Individuals taking loans up to 5 years who are in risk markets A*–C

Zopa classic:

Individuals taking loans up to 5 years who are in risk markets A*–C

Zopa plus:

Individuals taking loans up to 5 years who are in risk markets A*–E. Find out more about Zopa's risk markets

You can pick your product later

Better rates of return

Returns at Zopa are significantly higher than a bank savings account because you lend directly to borrowers, cutting out the costs of running a bank and the typical bank margin between savings and personal loan rates.

However we're not a bank, which means that your money is not guaranteed by the Financial Services Compensation Scheme, and your capital is at risk.

Zopa's historical returns

Direct lending

Once your money has been matched it’s lent at a fixed rate for the duration of each loan contract. As money is gradually paid back it will be re-lent at the latest rates (or you can withdraw it). This means that the rate you get on new lending will follow the latest product rates.

Direct lending also means you have a loan contract with each borrower. The rate in the contract is fixed for the duration of the loan contract, which can be up to 5 years. This is an important part of peer-to-peer lending because it means your returns are not tied to the performance of the overall Zopa loanbook or Zopa’s own business performance.

Not taxing

Zopa provides an annual statement to make it simple to declare your earnings to the HMRC for tax purposes. The amount of income tax payable is dependent on your individual circumstances and may be subject to change in the future.

From 2016/17 tax year lenders with the Zopa Plus product and no Safeguard cover will be able to set any losses that they incur against income from their other loans thanks to the Personal Savings Allowance. This allows lenders who are comfortable with Zopa’s peer-to-peer lending model to earn higher projected returns if they are happy to take the additional risk of volatility in default rates at the level of their portfolio.

For the tax year of 2016/2017 and onwards, Zopa is planning to offer all three of our products under an ISA wrapper, allowing you to save up to £15,240 in each tax year, tax-free.

To date, we've helped 63,000 individuals lend out over £1.72bn

Got a question?

Email: contactus@zopa.com

Telephone: 020 7291 8331

UK residents only. Calls may be monitored or recorded.