The current account paying 2% of your energy and water bills back in cash | Personal Finance | Finance

A free current account from Zopa Bank is offering customers 2% cashback on their monthly household bills, alongside interest on their balance and a high-rate regular saver. The account, called Biscuit, has been highlighted as one of the best everyday-value accounts currently available.

Zopa Bank says Biscuit has been designed to help people earn more on the money they already use day to day. MoneySavingExpert has also listed it as a top performer for cashback, perks and regular savings. The account pays 2% AER (variable) interest on the money held in the current account, with no upper limit on how much of the balance can earn interest.

Customers also receive 2% cashback on up to £125 of household bills paid by Direct Debit each month, such as energy and water.

Biscuit also includes a 7.10% AER (variable) Regular Saver that allows people to save up to £300 a month.

Interest is paid monthly but shown as an annual rate, so it can be compared easily with other banks.

According to Zopa, the typical customer could earn around £192 per year by using the account’s interest, cashback and savings features.

This calculation was based on data verified on January 15, 2026, and compared Biscuit with 15 of the UK’s most popular free current accounts.

To work out the annual value, Zopa used several assumptions, including:

• an average current account balance of £4,460
• £125 of Direct Debits eligible for cashback
• customers paying the full £300 into the Regular Saver each month
• interest rates remaining the same for 24 months
• no tax needing to be paid on interest
• monthly spending on groceries, fuel and transport of £416

Using these figures, Zopa says the £192 annual value is made up of:

•  £30 from 2% cashback on bills
• £89.20 in interest from the 2% AER current account
• £72.92 in interest from two six-month Regular Saver pots

Customers can also use the account abroad without paying overseas card-spending fees. Zopa says payments will use the real Visa exchange rate. ATM withdrawal fees may still apply depending on the country.

The account is free to open, and Zopa says it is designed for people who want a simple, everyday bank account with extra rewards. 

Withdrawals from the Regular Saver are allowed at any time, although it is intended for consistent monthly saving.

Zopa advises customers to check the latest terms and rates before applying, as all interest rates are variable and can change.

Several other banks also offer free or fee-based current accounts with cashback, switching bonuses or linked savings. Here are some of the alternatives available right now.

Santander Edge

Santander Edge is a paid-for account costing £3 a month. It offers £200 for switching, plus a possible £25 Amazon voucher. Customers get 1% cashback on energy, council tax, broadband, TV, mobile and water bills (up to £10 a month), as long as they pay in £500 a month and have two active Direct Debits. The linked Edge Saver pays 6% interest on up to £4,000 for the first year. The debit card also has no foreign exchange fee when spending abroad. Santander also has fee-free options and upgraded accounts, but the cashback and savings perks sit with Edge.

Nationwide FlexDirect

Nationwide FlexDirect is free and offers a £175 switching bonus. New customers get 5% interest on balances up to £1,500 for 12 months, worth up to £75. The account also offers 1% cashback for one year (up to £5 a month) when £1,000 is paid each month. Some customers also receive a £50 interest-free overdraft. A linked regular saver pays 6.5% interest on up to £200 a month.

TSB Spend & Save

TSB’s Spend & Save account is free and comes with £200 in switching incentives – £150 upfront, £50 in April, plus £30 cashback if customers make 20 debit card payments a month for six months. The account also gives access to a 5% regular saver on up to £250 a month, fixed for a year.