By Michael Trudeau
Article 3 of 5
Zopa reviewIf you're thinking about saving or borrowing money through a peer-to-peer lending website, read our in-depth Zopa review.
Zopa peer-to-peer lender details
- Minimum lend: £10
- Maximum lend: No maximum
- Lending term: Investors can choose from three investment products: Zopa Access, Classic, and Zopa Plus, which offer different levels of risk, access and return. The loans they invest in are for terms ranging from one to five years, but investors can withdraw money at any time (see below).
- Can I withdraw funds early? Yes, but you will have to pay 1% of total amount withdrawn on most products, with the exception of Zopa Access, where there is no withdrawal fee.
- Average rate of return for lenders: 2.9% (Zopa Access, before tax), 3.7% (Zopa Classic, before tax), or 6.1% (Zopa Plus, before tax). Rates checked 18 February 2017.
- Minimum amount you can borrow: £1,000
- Maximum amount you can borrow: £25,000
- Borrowing term: One to five years
- Can loans be paid off early? Yes, and without any penalty fees
|Zopa peer-to-peer lending satisfaction|
|Explanation of the risks|
|Variety of products available|
|Ease of use of the website|
|Clarity of information on the website|
Star ratings out of five show levels of satisfaction for each category.
What Zopa's customers say about them?
‘Easy-to-use website, easy to withdraw and invest, and good email reminders.'
‘Straightforward, and better rates than a building society. I have no cause to mistrust the system.’
‘Good interest rate paid, but absence of FSCS coverage as on other savings remains a concern.’
Alternatives to peer-to-peer websites
If you're looking for a loan, it's worth checking out Which? Best Rate personal loans, too.
In almost all cases you'll want to build up cash savings (in Isas or savings accounts) before considering putting your money into a more risky investment such as peer-to-peer lending.
If you're looking for higher returns you might want to consider other investments.
- Last updated: Mike Trudeau
- Updated by: July 2016