Zopa Biscuit current account review: decent cashback and savings rates

Zopa's new Biscuit current account is an eye-catching offer that compares favourably to many of the most popular offers out there.

Zopa has launched an impressive new current account that offers generous savings rates as well as cashback.

We'll get into this new offering in detail below, but the headline stats are as follows: you can earn 2% cashback on bills, your in-credit balances will earn interest at a rate of 2%, you'll get access to a regular savings account paying an impressive 7.1% and you won't be charged for spending abroad.

On the downside, the Zopa account can only be managed through an app or online, so won't be suitable for people who like to do any of their banking in-branch. 

Now let's look at the key offerings in a little more detail.

Uncapped in-credit interest

The Zopa Biscuit account pays 2% AER on all balances. 

Most current accounts pay little to no interest at all, and the handful of accounts that do pay a decent rate – we've rounded up the best ones here – often place a cap on the amount that you can earn the headline rate on, which can be as low as £1,500. 

So the fact that you can earn a reasonable 2% on any amount puts it ahead of most rivals in terms of rewarding you for keeping money in a current account.

Earn up to 7.1% on regular savings

Customers also get access to a 12-month regular savings account paying 7.1%, which allows you to deposit up to £300 a month. 

Paying the maximum amount each month into Zopa's linked savings account would generate £137 in interest over the year. 

Only Principality Building Society (PBS) has a more generous rate on a regular saver, paying a rate of 7.5%. 

However, you can only pay in a maximum of £200 a month and it's only a six-month account.

So, for many, the Biscuit regular saver will be hard to beat.  

Up to £30 cashback

The Biscuit current account also comes with a cashback offer of 2% on bills.

Sadly, this only applies to the first £125 worth of Direct Debits paid out each month, or up to £1,500 a year.

Earning 2% on £1,500 works out to £30 a year, or less than £3 a month. 

While it's a welcome addition to an account that is already generous to savers, it falls well behind the top dedicated cashback current accounts out there. 

As a case in point, the Chase bank account is also fee-free and lets you earn up to £15 a month, or £180 a year.

Is Zopa safe?

While it might not be as well-known as the High Street banks, Zopa holds a full UK banking license, is regulated by the Financial Conduct Authority and customer deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

It was also voted the UK’s Best Personal Loan Provider and Best Credit Card Provider at the 2024 British Bank Awards.  

Things to watch out for

However, Zopa isn’t part of the Current Account Switching Service, so it may take longer to switch your present current account over to them than with other banks signed up to the service. 

It’s also unclear whether the 7.1% interest rate on the savings account will stay in place if the Bank of England cuts rates in the future. 

Plus, you will need to be comfortable doing your banking on your smartphone as the account is only available via an app. 

On the plus side, this does mean that the Biscuit account can be opened in minutes.

£256 in interest and cashback a year

The challenger bank says the typical customer will be £256 better off as a result of the cashback and interest offers available through the Biscuit account. 

Throw in the fact that account holders will not incur fees on holiday spending abroad and it's clear this is an attractive proposition, especially for those who like to keep a chunk of money in their current account or are looking to set new savings aside each month.

But the account certainly isn't for everyone. As mentioned, it has no physical branches, while the lack of a free overdraft means those who regularly go overdrawn would be better off looking at one of these accounts instead.