Zopa Bank's New Current Account Includes a Regular Saver Yielding 7.1% - A Tempting Offering?
**Zopa's Biscuit Current Account: A New Option for Savvy Savers**
Zopa, a well-known name in the UK's financial sector, has launched a new current account named Biscuit, offering an intriguing blend of high-yield savings and everyday banking features. The account, available through the Zopa Bank app, is open to UK residents aged 18 and over.
One of the standout features of the Biscuit account is its competitive interest rate. It pays 2.00% AER on all current account balances, significantly higher than the meagre returns offered by most major high street banks. Additionally, customers can earn 2% cashback on up to £1,500 of annual Direct Debit payments, which equates to approximately £125 monthly, providing meaningful rewards on regular bills like utilities and subscriptions.
The Biscuit account also offers a linked high-yield regular saver, paying 7.1% AER on monthly deposits up to £300. This is a rare combination for a current account offering, allowing customers to manage their everyday money and savings in one place. The account also includes fee-free foreign spending, a feature typically reserved for premium accounts with monthly fees, making it an attractive option for travellers.
However, the Biscuit account does have some limitations. The cashback cap limits the maximum cashback to about £30 annually, which might be lower than some dedicated cashback credit cards or specialized accounts. Additionally, the high 7.1% AER saver is capped at £300 monthly deposits, potentially restricting the amount customers can grow at this attractive rate compared to some regular savings accounts with higher deposit limits.
When compared to other high-yield regular savings accounts, the Biscuit account stands out for its combined high-interest current account balance, cashback on bills, and access to a high-yield linked saver. However, the cashback and saving deposit caps, plus the newness of the product, might limit its appeal for some customers compared to specialized high-yield savings accounts or premium current accounts with broader perks.
In conclusion, Zopa's Biscuit current account offers a compelling blend of features that differentiate it from many other high-yield regular savings accounts and standard current accounts in the UK market. By depositing up to £300 per month into the Biscuit account, customers could potentially earn up to £137 per year, and by combining interest and cashback, they could potentially earn £256 per year according to Zopa. However, it is essential to note that one needs to be tech-savvy and comfortable managing their finances through an app to use the Biscuit account.
Business individuals and personal-finance enthusiasts seeking high returns on their savings might find Zopa's Biscuit Current Account an attractive option. This account combines competitive interest rates on savings with everyday banking features, offering a potential yearly return of £256. However, the app-based management and caps on cashback and savings may deter those who prefer traditional banking methods or seek higher deposit limits.
