Zopa Bank has raised the interest rates on two of its savings products, with its one-year Cash ISA now paying 5% AER (4.88% gross) and its six-month fixed-term savings account increased to 4.65% AER (4.60% gross). Both rates are available immediately through the Zopa app, and new and existing customers can sign up in just a few minutes.
The rate increases come as households begin to focus more on their finances ahead of Christmas and the colder winter months. Research commissioned by Zopa found that 68% of Britons believe different times of year call for different approaches to their money. Christmas is already changing the financial priorities of 40% of Zopa's current account holders, while 35% pointed to upcoming winter household costs.
Biscuit current account benefits
More than half (54%) of respondents also said that what they need from their money today is different from what they needed a year ago. Zopa launched its Biscuit current account in 2025, which has since been rated number one by MoneySavingExpert for cashback, perks and regular savings.
The account pays 1% AER variable interest on all balances and offers fee-free card spending abroad, as well as access to Zopa's banking AI. Customers can also choose an additional benefit depending on what suits them, including 2.75% AER variable interest on their balance, 3% cashback on up to £150 of eating-out spending each month, or 3% cashback on up to £150 of Direct Debits each month. Customers can switch between these benefits as their priorities change.
What else is available?
Zopa's 5% one-year Cash ISA is not the only account offering savers a rate close to 5%, with several fixed and easy-access deals currently available.
Among one-year fixed Cash ISAs, UBL UK offers a rate of 4.98% AER with a minimum deposit of £2,000, though withdrawals carry a penalty equivalent to 90 days' interest and partial withdrawals are not allowed. Shawbrook Bank pays 4.97% AER and is available to new customers only, requiring at least £10,000 to open, with a 90-day interest penalty on withdrawals. Skipton Building Society offers 4.96% AER fixed for 15 months and can be opened with just £1, also with a 90-day interest penalty. Virgin Money's one-year fixed Cash ISA pays 4.77% AER with a minimum deposit of £1 and a 60-day interest penalty for early withdrawals.
For easy-access Cash ISAs, Trading 212 pays new customers 4.83%, made up of a 3.6% variable rate and a 1.23% bonus for one year, and can be opened with £1. Chip offers new customers 4.82%, including a 3.5% variable rate and a 1.32% bonus for 12 months, with an interest penalty if the account is closed or transferred out. Plum's easy-access Cash ISA pays new customers 4.81%, including a 2.54% variable rate and a 2.27% one-year bonus, with transferred money receiving a lower 3.75% rate.
Among well-known names, Bank of Ireland UK offers 4.3%, made up of a 0.9% variable rate and a 3.4% bonus for one year, with a minimum deposit of £100. The Post Office pays 4.25%, including a 0.9% variable rate and a 3.35% one-year bonus, also with a £100 minimum. Tesco Bank offers 4.2%, made up of a 1.05% variable rate and a 3.15% bonus for one year, and can be opened online or by phone.
Savers should check the terms carefully before opening an account, particularly as some easy-access rates include temporary bonuses, while fixed accounts can charge penalties for taking money out early.
