It's new account, Biscuit, offers 2.0% annual equivalent rate (AER) interest on balances. Customers can earn 7.10% interest on a regular savings account, depositing up to GBP 300 per month. After a 12-month period, the regular savings account becomes an easy access savings account, with a rate of 3.50%, but users can open a regular saver anytime, according to the bank. Additionally, individuals can earn 2% cashback on bills up to GBP 1500 of direct debits per year.
Zopa’s Biscuit aims to offer more value across daily saving and spending. A survey commissioned by the bank and carried out by OnePoll amongst 2000 individuals in Britain notes that almost 24% of people chase cashback offers, while 19% have multiple bank accounts and financial products in hopes of finding better value, avoiding fees, and getting rewarded for their loyalty.
A third of the individuals surveyed mentioned they prefer the bulk of their bills and outgoings to leave their account on or close to payday, so they can better manage the funds they have left after necessities. 12% have a few days a week in which they don’t spend anything, and 37% utilise mobile banking to stay on top of their finances.
Representatives from Moneyfactscompare.co.uk mention the wider trend of challenger banks rolling out current accounts for customers seeking to make money work better for them. Digital banks are offering innovative alternatives to the high street banks, as well as benefits for their clients.
They also mentioned that the features of traditional current accounts tend to vary depending on how the customers utilise them. Zopa’s account may complement customers who want less complexity when opening a variety of accounts to cover different needs. Moneyfactscompare.co.uk also warned that it is crucial that customers work out how much they will fully earn from such an account.
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