Zopa Bank has unveiled its first savings products to the public.
Savers can now access one, two, three, four and five-year fixed rates for a minimum deposit of £1,000.
The rates on offer are 1.05 per cent for one year, 1.15 per cent for two years, 1.26 per cent for three year and four years and 1.3 per cent for five years.
These deals are lower than the exclusive rates offered to existing investors on its peer-to-peer lending platform last month.
In contrast, the best buy in the savings market for a fixed rate savings account is 1.22 per cent with Charter Savings Bank for one year and 1.31 per cent for two, according to Moneyfacts.
Savers can get a rate of 1.35 per cent for three years with Paragon Bank or the Bank of London and The Middle East offers the same over four years.
Paragon Bank currently offers the highest savings rate at 1.4 per cent for five years.
It comes after Zopa, the world’s first P2P lender gained its full bank licence in June.
“People quite rightly want to know that their savings will deliver a return that helps them make the most of their money,” Jaidev Janardana (pictured), chief executive of Zopa, said.
“Launching our fixed term savings product delivers the much needed choice and reassurance of rate that consumers are looking for.
“As a new digital bank, Zopa is using its innovative, agile approach to ensure we bring more choice and competition to people’s financial lives when they need it most. By leveraging our significant technological and financial services expertise we are able to offer good value, straightforward products and intuitive tools to help people manage their money.”
Read more: How Zopa Bank can crack the savings market