Santander Edge vs Zopa Biscuit: which is best for cashback on bills? 

These two present accounts allow you to earn a refund on direct debits

Choices to earn a refund on payments have been few and much between lately, with simply the Edge and Edge Up from Santander accessible to new prospects, and the identical financial institution’s 123 and 123 Lite for individuals who opened one up earlier than late 2022.

However in the previous few weeks that’s all modified – somewhat. Simply as Santander axes the 123 Lite account for current prospects (it’s already been closed to newbies for just a few years), Zopa officially launches Biscuit, it’s first present account, which can also be the primary non-Santander account to supply cashback on direct debits since 2019.

So whether or not you don’t at the moment earn any a refund on payments, are about to lose out with the closure of 123 Lite accounts or aren’t certain in regards to the two Edge accounts, I’ve taken a glance to match the cashback choices accessible.

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Learn how to earn cashback on payments

You’ll be able to in fact use a cashback credit score or debit card to pay some payments, and also you would possibly get related or higher charges at instances (try our analysis of the best cashback cards).

Nonetheless, with regards to some funds, comparable to power payments, paying by direct debit will provide you with a much bigger low cost than what a card will supply.

It’s additionally price remembering that some playing cards have caps on how a lot you possibly can earn every month, so paying payments with these playing cards may restrict cashback on different spending. You may additionally discover it laborious to pay by bank cards, particularly American Categorical, for Council Tax in some areas.

Which is the place the accounts we’re speaking about come into play. They pay a refund on direct debits that go away your account.

There are, as you’d count on, restrictions comparable to which direct debits qualify. You may additionally must consider month-to-month charges which can eat into your earnings. However I’ll clarify all these in additional element within the comparability.

It’s additionally price clarifying {that a} direct debit is totally different to a standing order or steady cost authority (CPA). A standing order is only a cost you set as much as commonly go away your account, normally to a different present or financial savings account, and a CPA is whenever you use your lengthy card quantity to take recurring funds. Neither of those will qualify.

A direct debit is a separate settlement, which might differ month on month, which you arrange with whoever you might be paying.

It’s price checking the way you pay. For instance, you would possibly suppose it’s a direct debit paying your broadband, however generally it may very well be a CPA. Likewise, a subscription comparable to Netflix goes to be a CAP and never a direct debit.

Which present accounts pay cashback on payments?

Proper, so tips on how to the accounts evaluate? I’ve not included the 123 Lite as that closes for current prospects on 9 September 2025.

It’s price noting two massive variations between the Zopa account and the Santander choices.

First, the Santander accounts solely pay on chosen payments, and generally chosen suppliers. These are Council Tax, water, power, cell phone, broadband and pay TV. Biscuit although will supply cashback on any direct debit you pay from the account, which may increase your choices to incorporate health club memberships and extra.

Second, Biscuit caps the cashback you earn yearly whereas for Santander it’s month-to-month. So you possibly can earn in your direct debits with Biscuit till you’ve spent £1,500 in a yr. That averages out at £125 a month – roughly what you would possibly count on for a Council Tax payments. However in case you paid direct debits totalling £500 a month you’d attain the restrict in simply three months and earn nothing extra for the yr.

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How a lot are you able to earn?

Trying on the cashback limits, the Edge Up clearly seems to be essentially the most promising. If you happen to made the total £15 a month, even after the £5 payment is knocked off, that’s nonetheless £120 revenue a yr. Likewise the Edge may complete £84 a yr after the payment.

Nonetheless, these caps are deceptive. To earn £10 or £15 a month when the cashback price is simply 1% would require complete payments of £1,000 and £1,500 a month for the Edge and Edge Up respectively. Realistically, most of us received’t be paying payments excessive sufficient every month.

For instance, my eligible payments complete £526 a month and would internet me £5.26 this month from both of these two accounts. Now, I don’t pay for Sky TV, which can be very expensive (too costly in case you ask me), and I haggle and change different payments the place I can, however most households who do related wouldn’t earn a lot totally different.

That guidelines out the Edge Up for me with a revenue of simply £3.12 a yr. The Edge is healthier – it could make me £2.26 a month, or £27 a yr. That’s just a bit greater than what the brand new Biscuit account would pay me with it’s £25 annual cap.

The 123 account would earn me £4 a month or £48 a yr, primarily based on my present payments, however sadly I’ve the quickly to finish 123 Lite in order that’s not an possibility for me, and it received’t be for many of you both. Nonetheless in case you do at the moment have the total 123 account, then that’s more likely to be the highest payer simply on payments.

First impressions would counsel what’s the purpose of getting these accounts in case you’re solely going to get between £25 and £30 a yr – and I’d agree if that was the one perk from these accounts.

Edge vs Biscuit financial savings charges

Let’s begin with the Santander Edge. For me the true perk of this account is the linked Santander Edge saver. This pays 6% for one yr on a steadiness of £4,000. That’s the best paying account proper now for a lump sum, albeit a restricted quantity. If you happen to put the total quantity in, you’ll earn £233 in curiosity over the yr. When the yr is over you possibly can shut it and open up one other, although the speed is variable so it may change.

Now, in case you’re not paying your payments out of the Edge present account, you’re not masking the £3 month-to-month payment, and that massively dents your curiosity return. Actually you would lose cash in case you don’t have sufficient saved!

So in case you’re not at the moment incomes cashback on payments, and are capable of earn at the very least £3 a month from doing so, and you probably have £4,000 to avoid wasting, I feel it is smart to open an Edge after which the linked Edge Saver. Even higher, you would nab a switching bonus on top if you’re new to Santander.

And keep in mind you don’t should make the Santander Edge your major account. You should utilize it only for these payments, which will also be a helpful budgeting hack that ring fences these important bills away from on a regular basis spending.

Biscuit by Zopa alternatively additionally has a implausible financial savings account. This one pays 7.1% variable on a daily saver – essentially the most you will get proper now over a yr. You’re restricted to including £300 a month for 12 months, however assuming you do that, you’ll earn £137 in curiosity.

And also you don’t must pay any direct debits from the account to qualify for this price. In fact, in case you do then there’s the potential for an additional £25 a yr on prime. And if these direct debits are ones not lined by Santander Edge, that’s further free money you wouldn’t have earned elsewhere!

Biscuit additionally provides 2% curiosity on in-account balances. That’s poor compared to other savings rates, however one of many higher ones when incomes within the present account itself. Realistically that’s solely going to be a profit in case you make Zopa your major present account, and I’d personally nonetheless have a look at different choices first in the meanwhile comparable to private favourites Starling and Monzo (that might change – Biscuit is model new).

One factor to recollect in case you are pondering of utilizing both or each the Santander Edge and Zopa Biscuit accounts as extra accounts to earn the cashback is to make sure you switch sufficient over every month to fulfill these direct debit necessities!