Zopa current account review
- Interest (AER)
- 2% AER
Our verdict
Zopa already has a suite of products for borrowing and saving, so it's a natural progression that it's adding a current account to its inventory.
Zopa's current account, Biscuit, is an interesting offering. By opening the regular saver and paying in the maximum monthly payment of £300 you could earn £137 over 12 months. You'd also earn £30 in cashback if you have £1,500 of direct debits paid out. Getting paid interest on your account balance is also a handy feature, even if there are other accounts that pay a higher rate, and you can spend abroad without incurring any fees. The account is free to open and can be managed through its app, which includes budgeting features like linking your accounts so you can analyse your balances and spending habits across the board.
Pros
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No monthly fees
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Fee-free debit card
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Easy-to-use app
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Cashback
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In-credit interest
Cons
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Overseas cash withdrawals may incur a fee
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No branches, online only
Details
Product overview
| Interest (AER) | 2% AER |
Zopa has officially entered the current account market with its new Biscuit account. The account pays interest on your balance, plus cashback and has a very competitive regular saver. Said to be the account that gives you more dough for less effort, Zopa really is taking the biscuit.
What is Zopa’s current account?
Biscuit by Zopa is a current account which pays interest and lets you earn cashback. It also has fee-free spending abroad and gives you access to a regular saver with a competitive interest rate.
Zopa is a digital bank, meaning the account is opened through its app. Once opened, you’ll receive an instant virtual card, which will give you immediate access to your account benefits.
You can also link your external accounts to your Zopa app to manage your money all in one place.
How it works
Biscuit by Zopa has some useful features available at present and you’re able to start using your account as soon as you open it.
You can earn 2% (fixed for 12 months) cashback on up to £1,500 of your direct debits paid from the account each year. That could earn you £30 over a year.
And it comes with access to a regular saver that pays 7.1% AER (6.87% gross) fixed for 12 months. You can deposit up to £300 a month, so in total that could accrue £137 in interest over a year.
It also pays 2.00% AER (1.98% gross) interest on the money you keep in your current account. This rate is fixed for 12 months.
It comes with a colourful Visa debit card that can be added to Apple Wallet or Google Wallet straight away, so you don’t have to wait until the physical card arrives before using it.
There’s no monthly fee, though you can only withdraw £200 in cash outside the UK every 30 days. After that, you’ll pay a 2% fee.
Is Zopa safe?
Zopa is a licensed bank, authorised and regulated by the Prudential Regulatory Authority (PRA) and regulated by Financial Conduct Authority (FCA). Deposits are protected by the Financial Services Compensation Scheme (FSCS) up £85,000.
Who is Zopa’s current account for?
This account could be useful if you’re looking to make your everyday money work for you, as you earn interest on your balance and cashback on direct debits. The regular saver is also one of the highest rates on the market. While the account is new, it still has solid money management features like linked acccounts and the ability to freeze or unfreeze your can in the app. However, everything is done via the app, so if you’re looking for branch support from your bank, it would make sense to look elsewhere.
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