Zopa launches debut current account offering up to £256 in cashback and interest

Holders will earn 2% cashback on their bills and have access to a savings account paying 7.10% AER.

Digital provider, Zopa, today expanded into the current account market with a product it hopes will deliver “great value across everyday spending and saving, all through one seamless App experience”, according to the bank’s Chief Strategy Officer, Merve Ferrero.

Its debut current account, named Biscuit, not only provides holders with a home for their everyday banking, but offers 2.00% AER interest on all credit balances, 2% cashback on bills (up to £1,500 per year) and access to its Regular Saver pot paying 7.10% AER on deposits up to £300 per month. Combined, these perks could see accountholders up to £256 better off^*.

“It is exciting to see another challenger bank launch a current account into the fray for consumers hoping to make their money work harder for them,” said Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

With Springall adding that the lucrative benefits offered by some digital banks can make them a “refreshing alternative” to major high street brands, should you consider making the switch?

How does it compare?

Biscuit joins several current accounts that pay interest on in-credit balances already on the  market. Notably, Nationwide BS’s FlexDirect offers a leading fixed rate of 5.00% AER for the first 12 months on balances up to £1,500 (but requires holders to deposit at least £1,000 into the account each month). Alternatively, fellow app-based provider, Kroo Bank Ltd, pays 3.15% AER with its current account; this rate is set to rise and fall at 1.10% below the Bank of England base rate.

Meanwhile, those enticed by the prospect of having access to the provider’s regular savings account paying 7.10% AER may also want to consider other non-linked accounts. Principality BS’s 6 Month Regular Saver Issue 3, for instance, offers a fixed rate of 7.50% AER on deposits of up to £200 per month.

Nevertheless, Springall acknowledged Zopa new current account could be a convenient option for those looking to make their money work harder.

“The perks of traditional current accounts do tend to vary depending on how a customer uses it, so for one they can make a decent return on their balance, but they typically will need a separate account if they want to earn cashback when they spend,” she explained.

“The fact that Zopa will provide both a competitive return on small balances and cashback on bills is a good proposition and may be suited to consumers who don’t want the hassle of opening a variety of accounts to cover different needs,” Springall continued.

However, consumers shouldn’t be swayed by incentives alone and must make sure all aspects of an account meet their needs before switching or applying. More information on Biscuit and the alternatives can be found on our current account charts.

_{*The annual financial value a customer can get from the Zopa Account is calculated using the following six assumptions:} 

_{1. Customers earn 7.10% AER on £300 deposited every month, maximising the cap of the Regular Saver.}

_{2. Customers earn 2.00% cashback on bills, accumulating a minimum of £1,500 of direct debits per year (£125 per month).}

_{3. Customers earn 2.00% on their current account balances.} 

_{4. Average current account balance calculated in line with BOE’s seasonally adjusted households’ sterling non-interest-bearing sight deposits (2025) and ONS’s latest population estimate (2023).}

_{5. For illustration purposes we’ve assumed any variable rates to stay the same for the next 12 months.} 

_{6. For illustration purposes we’ve assumed tax isn’t due on the savings or credit interest but note that tax treatment depends on individual circumstances.}