Features of Biscuit
Biscuit offers 2.0% annual equivalent rate (AER) interest on user balances. For those seeking higher returns, Zopa’s regular savings account provides an appealing 7.10% interest after a monthly deposit of up to GBP 300 for twelve months. After this period, the regular savings account transforms into an easy access savings account with a rate of 3.50%. Users have the flexibility to open a regular saver anytime, according to Zopa.
Cashback Incentives
Individuals can also earn 2% cashback on up to GBP 1500 in direct debits per year from their bills. This adds an extra layer of value for users who pay regularly with direct debit.
Customer Survey Insights
A survey by Zopa, conducted through OnePoll among 2000 British individuals, revealed that a significant portion of people actively seek cashback offers (24%). Another notable finding was that nearly two in five have multiple bank accounts and financial products to optimize their savings and avoid fees. Interestingly, a third prefer to keep larger amounts on or near payday for better fund management.
Industry Perspective
The trend of challenger banks like Zopa entering the current account market is seen as part of an effort by digital banks to provide innovative solutions that high street banks may not offer. These alternatives aim to give customers more control over their finances and reward them for loyalty through benefits such as cashback.
Traditional current accounts often vary in features based on usage, suggesting Zopa’s account could be a simpler alternative for those looking to streamline their financial management.