Zopa doubles current account cashback to 4% - but how does it compare?

Customers could earn over £200 in interest and cashback through its Biscuit current account.

Digital bank, Zopa, announced today it’s doubling the amount of cashback its flagship current account pays on bills in a bid to help consumers grappling with rising living expenses. For a limited time only, those who open a new Biscuit current account will get 4% cashback for 12 months on up to £2,000 of direct debits (annually) – which could include spending on energy, council tax and broadband.

“While we can’t stop bills increasing, we can help people get more money back as they pay them,” said Clare Gambardella, Chief Customer Officer at Zopa.

To take advantage of the enhanced rate, consumers simply need to open a Biscuit current account using the Zopa app during the promotional period and set up their direct debits. Any cashback earned is then paid into the account monthly.

What’s more, the Biscuit current account comes with extra perks, such as 2.00% AER interest on balances and exclusive access to Zopa’s market-leading regular savings account (which pays 7.10% AER variable). When combined, the amount of interest and cashback on offer could see accountholders become up to £242 better off over the course of a year.

“The Zopa Biscuit bank account is a fantastic fee-free option, it’s transparent and fuss-free, so having rewards is a great boost,” said Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

However, she reminded consumers that “the best current account is not just about the rewards, it’s whether it has all the additional benefits someone needs to save money elsewhere, like insurance policies or breakdown cover, which you can get on many packaged accounts”.

How does the Biscuit current account compare?

The Biscuit current account from Zopa is one of several options that pays cashback on spending. But, despite being boosted to offer up to £80 cashback on bills over a year, it should be noted this amount can be beaten elsewhere.

For instance, customers can earn up to £180 cashback per year with the Chase Current Account (from fellow digital bank, Chase). It pays 1% cashback on the first £1,500 of eligible purchases each month – which includes money spent on groceries and everyday transport. Furthermore, they’ll have access to the Chase Saver With Boosted Rate – a highly competitive easy access savings account that pays 4.50% AER (inclusive of a 2.23% 12-month bonus available in the first 31 days of being a new Chase current account customer).

“Other banks can provide cashback for different online or in store spends, as with Lloyds Bank’s Everyday Offers and Monzo’s cashback scheme,” said Springall, but explained that “customers will need to keep on top of the offers in their banking app”.

She also added that those looking to switch current accounts may want to take note of some of the “lucrative free cash offers right now”.