The digital bank claims the account provides the “highest value on the market”, with a typical customer able to earn £256 in cashback and interest per year.
The current account launch marks the fifth anniversary of Zopa becoming a fully regulated bank, following its launch on 24 June 2020. After a successful equity funding round last year, it announced plans to enter the current account market.
Zopa’s entry into everyday banking will see Zopa compete directly with both neobanks such as Revolut and Monzo and established players like HSBC, Lloyds, NatWest, and Barclays.
What does Biscuit offer?
The Biscuit current account offers the following:
- 2% AER interest on all in-credit balances
- 2% cashback on bills on up to £1,500 of direct debits per year (or £125 per month), which equates to about £30 per year in cashback
- Access to a Regular Saver account paying 7.1% AER on deposits up to £300 per month
- Fee-free spending overseas
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To estimate the potential financial value of the account, Zopa used Office for National Statistics (ONS) and Bank of England data to calculate an average current account balance of £4,460.
It calculated that customers with £4,460 in their account, spending the maximum £1,500 on annual direct debits and saving £300 per month in the Regular Saver account would pocket £256 per year in cashback and interest.
How to open a Biscuit account
To open an account, customers need to be aged 18 or over, be a UK resident and only have tax residency in the UK, and not be a US citizen.
Customers can open a Biscuit account on the Zopa app, with instant virtual cards allowing customers immediate access to account benefits.
Jaidev Janardana, CEO of Zopa Bank, said: “Stepping into everyday banking is a natural next step in Zopa’s mission to build the ‘Home of Money’ for its customers. We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience. All our products are designed to provide good value and ease, and our new bank account is another great example of this philosophy.”
Merve Ferrero, chief strategy officer at Zopa Bank, said: “Many of us spread our money across different providers – holding it with high street banks, moving some into savings or investments, and spending through neobanks. We do this because we want safety, good value, and convenience at no extra cost. But no single bank meets all these needs in one place. Zopa Bank aims to change that with Biscuit – delivering great value across everyday spending and saving, all through one seamless app experience.”
