Last week was an exciting week for everyone at Zopa as well as for our lenders, when we announced the launch of a new feature called ‘Rapid Return’. It’ll allow lenders in most circumstances to access some or all of their money, before their borrowers are due to pay it all back, in return for a 1% charge.
Until now, lenders had no option to access their money lent out until it is repaid by borrowers through their monthly repayments. But with the launch of ‘Rapid Return’, lenders can now choose to get instant access to their money, for whatever reason they want.
This new option means that for huge numbers of people who by necessity have their money in instant access savings accounts, the radically better returns available from person-to-person lending become readily available. Given that the average return on an instant access savings account is currently 0.79% (source: Moneyfacts) and the average return Zopa lenders have enjoyed over the last 12 months is 8.1% (after charges but before any bad debt), this could make an enormous difference to the financial well-being of these people.
We’re pleased to see that it’s proving rather popular! Click here to find out more about how it works.