Zopa challenges HSBC and Revolut with current account launch

Zopa is offering cash back and high interest rates on its new current account.
Zopa challenges HSBC and Revolut with current account launch

UK online digital bank Zopa Bank has confirmed the launch of its current account product, pledging cash back and high interest rates.

Zopa, the savings and lending digital bank backed by SoftBank, is looking to take on challenger banks like Revolut and Starling as well as traditional banks like Barclays and HSBC with its move into current accounts.

Called Biscuit, the current account offers two per cent interest on all balances and 7.10 per cent interest on a linked savings account.

The 7.10 per cent interest is only available to Zopa current account holders, not Zopa savings account holders, and users can earn the interest on deposits of up to £300 per month, which Zopa says is the highest in the market.

Additionally, Zopa current account holders can also earn two per cent cashback on household bills paid by direct debit, valid on up to £1,500 direct debits per year.

Zopa has 1.5m customers in the UK and acquired a full UK banking licence in 2020.

Jaidev Janardana, CEO at Zopa Bank, said: “Stepping into everyday banking is a natural next step in Zopa’s mission to build the Home of Money for its customers.

“We believe that British consumers deserve better than having to constantly chase deals and accept complexity or poor experience. All our products are designed to provide good value and ease, and our new bank account is another great example of this philosophy.”

Image: Zopa Bank

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