The interest is paid monthly with the 2.86 percent rate applying to the easy access funds. An account can be opened with £1 via the Zopa app.
Savers can also set up boosted pots, choosing a notice period to withdraw funds of either seven, 31 or 95 days.
Funds put into these accounts get higher rates of interest, including:
- Seven days’ notice – 2.91 percent
- 31 days’ notice – 3.06 percent
- 95 days’ notice – 3.26 percent.
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This past week, the Bank of England increased the base interest rate to 3.5 percent, the ninth consecutive rates rise in recent months.
Some banks and building societies have reflected the increases in upping their rates, meaning people’s savings go further.
James Blower, head of Savings at Zopa, previously told Express.co.uk that savvy savers should regularly set aside time to research the best deals.
He said: “For people looking to create better habits around savings, the easiest way is to set aside a few minutes every month to check comparison websites and get a feel for the best rates and deals available.
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“The more one can make it routine the better, so creating a recurring calendar or phone reminder, ideally for a moment you know you’ll have the time and focus to do it, will help make it a habit.
“Those with larger savings balances could benefit from checking rates and switching more frequently, as the savings market can move fast and getting the right deal at the right time could ensure better returns.”
For those who don’t want to move their funds around that frequently, the savings expert offered these tips:
- Look for banks that have a track record of offering competitive rates and passing increases through to existing customers as well as new savers
- Find out if one’s current savings provider has more or better options that could improve yields.
However, Mr Blower warned there is no easy way to predict when banks will change their rate, and that a base rate hike does not mean all rates will go up.
He explained: “Despite the many increases to the base rate this year, many high street banks have passed on merely a fraction of the total 2.9 percent increase to their savings customers.
“These banks also tend to offer lower interest rates on savings accounts compared to newer banks, which tend to adjust rates more frequently.
“In general, a consumer switching their savings account should consider savings options that combine a high interest rate, good service, an accessibility level which suits them, and tools to manage their money easily.”