A financial expert has praised a new bank account offer that rewards customers with cashback when they make purchases. Rachel Springall, finance expert at Moneyfactscompare.co.uk, described the latest deal from Zopa as a 'fantastic option' due to its lack of fees. However, she also issued a warning about the actual cashback amounts customers might receive.
Zopa Biscuit Bank Account Details
Rachel explained: 'The Zopa Biscuit bank account is a fantastic fee-free option, it's transparent and fuss-free, so having rewards is a great boost. On the face of it, 4% cashback on bills looks highly attractive, but it's vital consumers break down how cashback is calculated and understand any caps or limitations.'
Over the course of one year, the cashback someone can earn in total off direct debits will be £80; the previous offer was 2% cashback on bills, so customers would have earned up to £30 per year, so there are still other bank accounts which are more rewarding and some less so.
'However, the best current account is not just about the rewards, it's whether it has all the additional benefits someone needs to save money elsewhere, like insurance policies or breakdown cover, which you can get on many packaged accounts.'
'It is also worthwhile to compare the amount someone can receive over the year in any tied savings account, these are usually much more competitive than a standard easy access account from the biggest banks. The regular saver with Zopa needs to be reviewed after six months, so it's wise to maximise deposits in this short timeframe to fully take advantage.'
Alternative Bank Accounts Offering Cashback
Rachel outlined some other options as well, which she suggested might be more suitable for certain individuals. She explained: 'Other banks can provide cashback for different online or in-store spends, as with Lloyds Bank's Everyday Offers and Monzo's cashback scheme, customers will need to keep on top of the offers in their banking app. If someone is looking to switch, it's worth noting that a variety of current account providers are paying lucrative free cash offers right now, so that's worth keeping in mind if using the Current Account Switch Service (CASS).'
Expert's Top Three Choices of Fee-Free Accounts Offering Cashback for at Least 12 Months
Rachel highlighted some deals from various providers.
- Chase (Chase Current Account) – £180 annually in cashback on expenditure (1% cashback on the first £1,500 of your eligible UK spend each month. This means up to £15 cashback on your everyday debit card spending. Groceries, everyday transport, fuel and electric charging. Exceptions apply.)
- Santander (Edge Current Account) – £120 annually on bills = Cashback of 1% on communication, council tax, water bills, gas and electric bills paid via direct debit, capped at £10 per month.
- Nationwide (FlexDirect) – £60 annually on spending (1% cashback, up to £5, every month for 12 months. Spending restrictions and terms apply.)
These alternatives provide varying levels of cashback, and consumers are encouraged to compare offers based on their spending habits and needs.
