UK-based digital bank Zopa has launched a new current account offering, featuring cashback on spending and an eye-catching 7.1% interest rate on linked savings—marking a bold step in its evolution from peer-to-peer lending platform to full-service challenger bank.
The current account, rolled out this week to early adopters, includes 1% cashback on most card purchases, free ATM withdrawals, and fee-free international transactions. Customers will also be able to access the 7.1% rate through a ‘Smart Saver’ feature, which allows funds to be moved instantly between spending and savings pots—aiming to maximise returns without compromising flexibility.
The savings rate, among the highest available from any UK-regulated institution, is designed to compete directly with fintech rivals such as Chase UK, Monzo, and Revolut, as well as traditional high street banks. Zopa has positioned the new product as a “money mission” toolkit, aimed at savers and spenders who want control, clarity and rewards from a single app-based interface.
CEO Jaidev Janardana said the launch reflected the company’s vision to “rebuild people’s confidence in banking” by offering fair value and digital-first innovation. “We believe customers deserve a bank that grows with them and works harder for their money,” he stated during the product announcement.
The move builds on Zopa’s growing momentum in the UK financial services space. Since gaining its full banking licence in 2020, the firm has steadily expanded into credit cards, personal loans, and savings products. With more than £4 billion in deposits and a growing user base, Zopa’s shift into current accounts signals its ambition to become a mainstream financial player.
However, the strategy also carries risk. Consumer loyalty in the banking sector remains difficult to earn, and even harder to retain. With rates subject to change and regulatory scrutiny intensifying around high-yield financial promotions, Zopa will need to sustain strong performance while navigating a competitive and cautious economic environment.
Still, early reactions have been positive. Analysts view the savings rate as a “market-grabber” designed to attract deposits rapidly, particularly from younger and digitally savvy consumers. If Zopa succeeds in converting interest into long-term users, it could challenge incumbents and fellow neobanks alike—potentially reshaping the expectations of the modern current account.
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