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Zopa Safegaurd

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Introducing: the Safeguard offer

Did you know Zopa savers have lent nearly £300 million to sensible borrowers? But with a 197% increase in savers joining us this year, we think Zopa can do more to help UK savers protect and grow their savings.

So we are excited to launch our Safeguard offer, a new tool on Zopa to help savers lend money safely, quickly and earn great returns.

We’ve listened to your feedback to offer a new and easier way to lend with Zopa, so savers can:

Lend safely knowing their money is protected by the new Zopa Safeguard

Earn the best returns available by offering new tracker rates

Try Safeguard offer

What does the Safeguard offer do differently?

1. Lend safely

We are introducing the Safeguard offer so you can lend safely, quickly and earn great returns. Zopa has created the Safeguard in order for you to get back all the money you put into Zopa plus interest on your lending without having to worry about a borrower not being able to pay you back. You earn interest by lending to sensible borrowers with good credit-ratings through Zopa. Our expert loans team uses a wide range of careful checks to make sure borrowers can afford to repay their loans. As a result Zopa has a higher repayment success rate from borrowers than any other peer-to-peer lender or the high street banks. But, there may be a rare event where one of your borrowers can’t pay you back, perhaps due to redundancy or illness. The Zopa Safeguard was created to step in and protect your money should this happen, to give you back all the money owed to you.

What is the Zopa Safeguard?

The Zopa Safeguard is a fund held in trust by a not-for-profit organisation, which means Zopa has no rights to the money in it. If a borrower you lend to through the Safeguard offer is then unable to pay back their loan, the Zopa Safeguard makes up the money owed to you.

Zopa has many years’ experience in credit-checking borrowers and closely monitors any missed repayments. This means that Zopa can very accurately monitor the Safeguard funds to check it contains enough money, and a bit extra, to pay savers back.

The Zopa Safeguard isn’t an insurance or guarantee product, it’s just good sense for savers and borrowers looking for a better deal.

2. Earn the best return on your savings

Our key priority is to help you lend money efficiently. You can earn market-leading returns from lending your money with Zopa, but if you have money in your Zopa holding account or waiting to be lent this won’t be earning interest. To get your money working harder for you, Zopa can help you lend at competitive rates to attract more of the UK’s safest borrowers and earn higher interest than you can at a bank.

New tracker rates

Zopa borrowers are sensible people who shop around to find the lowest rate loan available. When you lend on Zopa you are competing with banks, building societies and other lenders who frequently change the personal loan rates they offer dependent on loan size, term and borrowers’ credit-ratings.

Choosing lending rates that are competitive with other loan providers is important for lending your money. If the rate you are offering is too high you will not attract borrowers to lend to which means you won’t earn any interest. On the other hand, if the rate you are offering is too low you will miss out on the best returns.

To save you having to frequently re-adjust rates manually, and to avoid missing out on interest, you can choose to lend at the new tracker rates through the Safeguard offer. This means the rates you are offering to borrowers will follow the UK personal loan industry and deliver you the best return available at any given time. As rates go up in the personal loans market, the rate you are offering will go up and your returns will increase. When rates go down there is a minimum threshold in the tracker rates to ensure lenders still earn a better return than they can at a bank.

The tracker rates look at the following things:

Loan rates:

The rates currently offered for different types of personal loans by UK banks, building societies and other lenders.

Supply and demand:

Whether the amount of money being offered by all lenders through Zopa is enough to meet the number of borrowers looking for a loan. If lender money in Zopa is low then rates to borrowers will rise.

Rate threshold:

The tracker rates have a minimum threshold below which you cannot lend to a borrower. This is to help deliver a projected return to the lender that is always well above the average of banks’ savings rates on easy access and fixed term savings accounts.

View key changes between Safeguard and non-Safeguard offers

So, to earn great returns on your savings, simply start lending with the Safeguard offer!

Interested what people think.

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Race to the bottom time. Now you can rush to lend to all the highest-risk borrowers for Icesave-sized returns.

They can probably get away with it while there's a big surplus of savers over borrowers. But if that reverses, good-credit-risk borrowers are going to be excluded unless they pay bad-credit-risk rates. Subprime ahoy!

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The tracker rate looks useful. I often sign into my Zopa account for the first time in a few weeks/months and find a large percentage of my money waiting to be lent out because the rates I set have become uncompetitive. I never understood why they didn't include the option to always lend out at the current "ZOPA" rather than having to adjust this manually all the time.

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I might be missing the point but doesn't Safeguard oblige you to reinvest your returns, so you can never withdraw your money without a fee?

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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