Learn our assessment of the Biscuit present account from Zopa

Biscuit, a model new present account from Zopa has been examined in beta for a short time, with three different accounts on offer, however it seems like Zopa’s selected one to roll out to the general public. Right here’s how Biscuit works, the way it compares to different cashback present accounts on supply and our verdict.

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What’s Biscuit?

Biscuit is Zopa’s first ever present account. The account is free and you’ll handle it totally on the app. It gives numerous perks together with cashback in your spend, a linked common financial savings account, curiosity in your steadiness and fee-free spending overseas. 

Zopa’s advertising division has been busy, placing out claims that the account will fill a “big hole out there”, being each “tasty” and “uncomplicated”.

However, in our view, whereas there’s some options which might be okay – and one which’s fairly interesting, there’s nothing significantly revolutionary about it. 

Biscuit account options 

Right here’s a run-down of every part you get with the brand new present account from Zopa. 

Curiosity on steadiness

You may earn 2% in your present account steadiness, which is limitless. This 2% is a far cry from the top savings rates and present accounts in the intervening time, so we’d prioritise placing your spare money in these when you can. But it surely pays some curiosity on balances you intend to make use of imminently. 

Cashback

We’ve seen numerous cashback offers dwindle lately, with Chase watering down its offer so that you earn much less and Santander eliminating its 1% Edge and Edge cashback altogether from September.

So we had been initially excited once we noticed Zopa’s Biscuit account providing what appeared like a beneficiant 2% cashback on payments. Nonetheless, at a better look you’ll discover that is solely paid on as much as £1,500 of direct debits per yr. So, the utmost you may earn is £30 per yr in your payments — or £2.50 per 30 days. Which is piddly.

There are a variety of different accounts that supply higher cashback incomes potential together with Chase (despite the changes) and even the Trading 212 card. 

Common saver: earn 7.1%

Now, whereas the Biscuit cashback and rate of interest aren’t precisely spectacular, one perk that’s fairly respectable is the linked common financial savings account – which can show to be the most important draw.

It pays a variable price of seven.1%, which is at present the best price on supply over a yr. 

With this financial savings account, it can save you as much as £300 per 30 days, incomes a most of £137 over a yr, assuming the speed doesn’t change. However because it’s variable, it may nicely do.

Now, Principality does have a daily saver that pays 7.5% however just for six months, and First Direct and Co-op Financial institution aren’t far behind Zopa’s common saver, with charges of seven%.

The First Direct account has the slight edge over Co-op Financial institution as you may pay in £300 a month (Co-op Financial institution limits you to £250 a month) and most significantly, the 7% price is fastened for the yr – so it’s assured for that time period.

To say on prime of the very best accounts, take a look at our regular saver page which we replace weekly.

Price-free spending overseas

You need to use Biscuit overseas at no further price. You get the actual Visa exchange rate and might withdraw as much as £200 every month (with a 2% charge for quantities over this).

Another banks supply larger withdrawal limits, with Chase letting you withdraw as much as £500 per day, and Monzo letting you withdraw £400 per day. Most different accounts use the Mastercard trade price, which is often barely extra beneficial, however it’s negligible. Now we have a full spherical up of the best debit and credit cards to use abroad.

How you can open a Biscuit account

If you wish to open a Biscuit present account, you’ll have to obtain the Zopa app on both the App Retailer or Google Play. 

When you’ve downloaded it, you choose the “Open account” button and undergo a collection of questions. These are all fairly easy, with questions you must already know the solutions to, and it solely takes about 5 minutes. 

You’ll additionally have to take a photograph of your ID and take a selfie as a part of the sign-up course of. Zopa will carry out a mushy search in your credit score report for identification. 

Eligibility

To get a Biscuit present account, you could be 18+ and a UK tax resident, excluding the Channel Islands and the Isle of Man. 

You’ll have to have an ID handy for the ID checks.

Is Biscuit secure?

Zopa is protected by the Financial Services Compensation Scheme which covers £85,000 of your deposits if Zopa had been to go bust. However you’ll want to contemplate any cash you already maintain with Zopa, reminiscent of in financial savings, because the £85,000 consists of all accounts overseen by Zopa. 

You may get 24/7 assist with its in-app chat and phone assist. You may freeze and unfreeze the cardboard inside the app. 

Execs and cons

Execs

  • Excessive paying linked common saver paying 7.1%. Nonetheless, this account is variable, so that you wish to keep watch over the speed and transfer your cash if the speed drops.
  • Get an prompt digital card after making use of
  • 2% curiosity on all balances
  • 2% cashback on payments

Cons

  • No branches
  • You may’t deposit money
  • You may’t use the Present Account Switching Service (CASS)

Is Biscuit any good?

Zoe’s evaluation

Biscuit’s a reasonably respectable present account, however I wouldn’t say it’s filling in any gaps out there. Nonetheless, it may assist mop up further cashback the place you’re not at present incomes it.

For instance, when you’re at present paying extra payments from Chase or one other cashback account than you may earn cashback on, then you could possibly pay some from a Biscuit account and earn somewhat extra.  

The linked common financial savings account is the best paying present account linked one out there in the intervening time, with the subsequent finest coming from First Direct. The Biscuit cashback and common saver gives returns of as much as £167 per yr mixed. 

It’s a digital account, nevertheless it doesn’t really feel prefer it’s totally fleshed out simply but. You may’t deposit money, which might not be big subject, however it does imply you will have to have one other account as a backup. You additionally don’t get department entry, which wouldn’t trouble these used to digital accounts like Monzo and Starling, however might concern those who worth in-person assist. 

It’ll definitely be attention-grabbing to see how Biscuit adapts over time and suits into the market within the long-term. 

Biscuit by Zopa present account

Advantages 2% cashback on payments (as much as £2.50 per 30 days)
2% curiosity on all balances
Price-free spending overseas
Price No charge
Financial savings 7.1% linked common financial savings account
Necessities Over 18 and reside within the UK