Zopa launches current account with cashback and travel perks – is it worth going for?

Online challenger bank Zopa has launched its first current account, called 'Biscuit', as it expands beyond savings and credit products. 

The account offers a range of extras, including 2% cashback on bills, interest on your balance, fee-free overseas spending and access to a linked regular saver paying 7.1% AER. Zopa says these perks could be worth up to £256, depending on how the account is used. 

Here, Which? takes a closer look at how the account works – and whether it beats the best deals already on the market.

What does Zopa’s Biscuit account offer?

Like standard current accounts, you can use Zopa’s Biscuit account for everyday spending, getting paid, and paying bills. Additionally, you can deposit and withdraw money, as well as set up features such as Direct Debits and standing orders.

But unlike many standard current accounts, it also includes:

• 2% AER interest on your current account balance
• 2% cashback on up to £1,500 of Direct Debits per year
• Fee-free spending abroad, with some limits on ATM withdrawals
• Access to a linked regular saver account  paying 7.1% AER on up to £300 a month

You can also link accounts from other banks to Zopa’s app, so you can manage your money and make payments from one place.

• Find out more: best bank account providers 2025

What to know before opening an account

You can open a Zopa account online or through the banking app. A virtual card is issued instantly, with a physical card sent to your registered address.

However, Zopa’s current account isn’t yet compatible with the Current Account Switch Service (CASS), so you won’t be able to move your existing account across in full. You can still open a Zopa account alongside your main one, but you’ll need to transfer payments manually. 

Zopa is a digital-only bank with no physical branches. It offers 24/7 live chat support, and its customer service phone line is available 8am to 8pm on weekdays, and 9am to 5:30pm at weekends.

Zopa is regulated by the Financial Conduct Authority, and deposits are protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).

• Find out more: how to switch your bank account

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How does it compare?

From cashback to interest rates, we’ve looked at how Zopa compares with other leading current accounts:

2% cashback on bills

Zopa’s 2% cashback is the most generous rate currently available – but there’s a catch. It only applies to payments made by Direct Debit, such as energy bills, broadband, and council tax up to £1,500 per year. 

This means the maximum cashback you can earn is £30 per year, or around £2.50 per month. Chase said the 2% cashback rate is guaranteed for 12 months, so it could go down after the first year.

By comparison:

• Nationwide FlexDirect pays 1% on all debit card purchases, capped at £5 per month for the first year. Meaning you could earn £60 per year. 
• Chase offers 1% cashback on groceries, fuel and transport, up to £15 per month, meaning you could earn up to £180 per year. 
• Santander Edge Up pays 1% on selected household bills by Direct Debit, up to £15 a month — but with a £5 monthly fee, this brings the maximum cashback down to £120 per year after fees

Although Zopa's rate is higher, you'll need to ensure your bills are set up correctly to benefit – and track how close you are to the monthly cap. 

Cashback is paid monthly, on the anniversary of opening your account.

• Find out more: best bank accounts for cashback
  

Overseas spending

Most debit cards let you spend abroad, but you can be charged for it. Card providers can charge you a foreign transaction fee when spending outside the UK. 

These are charges banks can apply to purchases in a foreign currency or those that pass through a foreign bank. Each bank sets its own rate, so it can vary considerably depending on who you are with. On top of this, some debit cards can charge a flat fee each and every time you spend overseas, regardless of the amount. 

Zopa won’t charge for overseas spending with its debit card. You can also withdraw up to £200 in cash over a 30-day period without a fee. Go over this limit, and a 2% fee applies – whether it’s one large withdrawal or several smaller ones that exceed the cap.

Several banks now offer fee-free spending abroad, including Chase, First Direct, and Which? Recommended Providers Starling and Monzo. 

• Find out more: best debit cards to use abroad

2% AER on your current account balance

Zopa offers 2% AER interest on your current account balance, fixed for the first 12 months and paid monthly. This is a rare feature – most current accounts don’t pay any interest at all.

Among the few that do, only a handful offer more:

• Nationwide FlexDirect: 5% AER on balances up to £1,500, fixed for 12 months
• Kroo: 3.15% AER on balances up to £500,000, with no time limit
• Santander Edge Up: 2.5% AER on balances up to £25,000, but with a £5 monthly fee

By comparison, many big-name banks offer significantly less:

• Club Lloyds: 1.5% AER
• Virgin Money: 1% AER
• Bank of Scotland: 0.5% AER

Zopa’s 2% rate sits comfortably above most and without any monthly fee. While it isn’t the highest on the market, it’s still a strong offer if you keep a reasonable balance in your account.

• Find out more:best high-interest bank accounts

Access to 7.1% linked saver

Zopa offers a 7.1% AER regular saver, available to current account holders. You can save up to £300 a month for 12 months, with interest calculated daily and paid monthly. 

If you save the full amount each month, you could earn around £137 in interest over a year, provided Zopa doesn’t reduce the interest rate.  Unlike many rivals, Zopa allows you to withdraw from your pot at any time and replace the money within the same month – but you can’t deposit more than £300 per month, even if you take funds out.

It’s worth noting that interest on regular saver accounts works a little differently. Because there’s a limit to how much you can pay in each month, you only earn interest on smaller balances that build up over time – not the full amount from the start. As a result, your total returns over the year may be lower you expect. 

Zopa currently offers one of the most competitive regular saver accounts currently available. Only a few providers offer more:

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• Find out more: best savings rates 2025

Is Zopa a good provider?

Zopa became a licensed bank in 2020 and now has around 1.4 million customers. Until recently, it focused on savings and credit products and the launch of its new Biscuit current account marks its first move into everyday banking.

As the current account has only just launched, Zopa wasn’t included in our latest customer satisfaction survey for current accounts, so we can’t yet compare how it performs on service or reliability in this area. However, Zopa is a Which? Recommended Provider for both savings accounts and credit cards.

In our most recent survey of savings providers, Zopa received a customer score of 77%, with users praising the ease of the application process and its highly rated mobile app. 

Zopa also offers just one credit card, which achieved a customer score of 77% in our survey of credit card providers. Customers were particularly impressed by how easy it was to manage their accounts online or via the app.

• Find out more: best credit card providers