UK challenger bank Zopa has entered the current account market with the launch of ‘Biscuit’, a mobile-only current account designed to attract savvy savers and everyday spenders alike. Released in late June 2025, Biscuit offers features such as 2% cashback on direct debits, capped annually, and an impressive 7.1% annual equivalent rate (AER) on savings balances.
The account also includes fee-free overseas spending and a contactless Visa debit card but does not yet support cash or cheque deposits, overdrafts or participation in the UK’s current account switching service. These limitations are notable for customers accustomed to traditional banking features.
Zopa, which secured its full UK banking licence last year, aims to carve out a niche in the competitive UK market by combining attractive savings incentives with everyday banking needs. A Zopa spokesperson said: “We’re excited to offer Biscuit as a fresh alternative for customers who want great interest rates alongside simple banking.”
The launch arrives amid growing competition among UK challenger banks and FinTech firms seeking to differentiate through customer-centric products and digital-first experiences. Zopa’s approach targets consumers who prioritise savings growth while maintaining access to convenient payment options.
Industry analysts view Biscuit as a strategic move for Zopa to increase customer engagement and deposits, helping it compete with rivals such as Monzo, Starling and Revolut.
As UK consumers continue to embrace digital banking, Zopa’s innovative features and transparent pricing could appeal to a segment looking for higher returns without sacrificing convenience.
