Monzo vs Biscuit Bank Account: Which Is Best in 2026?

Last updated: 9 June 2026

By Stiv · Design, technology and personal finance

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If you are weighing up Monzo vs Biscuit for your everyday banking in 2026, the answer depends on what you actually want from your bank account. One pays interest and cashback on a free account. The other gives you some of the best budgeting tools in UK fintech. Both are app-only, both are FSCS-protected, and both let you spend abroad without fees.

In this comparison, we break down how Monzo and Zopa's Biscuit bank account stack up across savings rates, cashback, features, travel perks, and sign-up offers, so you can decide which one deserves your direct debits.

What is Biscuit by Zopa?

Biscuit is Zopa's first current account. It launched in summer 2025 and is free to open. Rather than competing on features, Biscuit focuses on earning you more from the money sitting in your account. You get 2% AER (1.98% gross, variable) interest on your entire balance, 2% cashback on up to £125 of Direct Debits per month (maximum £30 per year), and access to a linked Regular Saver paying 7.10% AER (6.87% gross, variable) for six-month terms. The account runs entirely through the Zopa app. Sources: Zopa; Zopa Regular Saver.

For a deeper look at the numbers, check out our full Biscuit bank account review.

What is Monzo?

Monzo has been around since 2015 and now serves over 15 million UK customers. The free account comes with instant spending notifications, Salary Sorter, Pots for budgeting, bill splitting, and Monzo Flex for spreading payments. Monzo does not pay interest on the main current account balance. Monzo's Instant Access Savings Pots pay 2.75% AER (variable) for free account holders, rising to 3.25% AER (variable) for those on a paid Perks or Max subscription. Select Access Pots (limited to two withdrawals per year) pay 3.15% AER (variable) on a free account and up to 3.65% AER (variable) with a paid plan. Sources: Monzo savings page.

Monzo vs Biscuit: savings rates compared

This is where Biscuit pulls ahead on the free tier. Zopa pays 2% AER on your full current account balance with no cap. On top of that, the linked Regular Saver pays 7.10% AER (variable) on up to £300 per month, making it one of the highest regular saver rates available in 2026. If you max it out over two consecutive six-month terms, you could earn around £73 in Regular Saver interest alone, according to Zopa's own calculations.

Monzo, by contrast, pays nothing on your main balance. To earn interest, you need to move money into a Savings Pot. Free users get 2.75% AER on Instant Access Pots, while Perks and Max subscribers earn 3.25% AER. Select Access Pots (limited to two withdrawals per year) offer 3.15% AER for free users and up to 3.65% AER with a paid plan. These rates are decent, but they require you to actively move money around. Source: Monzo.

For pure savings value on a free account, Biscuit offers higher savings rates.

Cashback on bills

Biscuit offers 2% cashback on Direct Debits, capped at £125 of qualifying payments per month (maximum £30 per year). It is not life-changing, but it is cashback on bills you would pay anyway. Most types of direct debit qualify, not just utilities. Source: Zopa.

Monzo does not offer structured cashback on its free account. Occasional partner offers appear in the app, but nothing as consistent or predictable as Biscuit's system. Source: Monzo.

Biscuit wins for cashback on the free tier, though the annual cap keeps it modest.

App features and everyday banking

This is Monzo's strongest category. The app is polished, reliable, and packed with tools that help you manage money. Salary Sorter automatically divides your pay into bills, spending, and savings. Pots let you ring-fence money for specific goals. You get real-time spending notifications, automatic categorisation, shared tabs, and the option to split bills with other Monzo users instantly.

Biscuit's app is simpler by design. It handles the basics well and gives you easy access to savings tools inside the Zopa ecosystem. However, it lacks the budgeting depth, social features, and level of polish that Monzo is known for. If you want a powerful day-to-day money management tool, Monzo is in a different league.

Monzo wins on features.

Travel and overseas spending

Both accounts let you spend abroad without fees on card payments. Biscuit uses the Visa exchange rate with no added charges, though ATM withdrawal fees may apply abroad. Monzo also charges nothing on card payments abroad and offers free ATM withdrawals up to £200 every 30 days (3% fee after that).

In practice, the experience is almost identical for most holiday use. This one is a draw.

Account switching and setup

Monzo supports the Current Account Switch Service (CASS), which means you can move your direct debits, standing orders, and incoming payments from another bank in seven working days. Biscuit does not yet fully support CASS, so you will need to set up direct debits manually if you want to earn that cashback.

Both accounts are quick to open through their respective apps and require standard ID verification. Monzo's CASS support makes switching from a legacy bank far less painful.

Monzo wins for switching.

FSCS protection

Both Monzo Bank Limited and Zopa Bank Limited are fully regulated UK banks. Eligible deposits are protected up to £120,000 per eligible person per UK-authorised bank, building society or credit union by the FSCS (since 1 December 2025). This protection applies separately for each institution, so your money in Monzo and your money in Zopa are each covered up to £120,000. You can verify both on the FCA register: Monzo Bank Limited FRN 730427; Zopa Bank Limited FRN 800542.

Sign-up offers

Monzo runs a refer-a-friend programme where new customers who sign up through a referral link can receive a random bonus ranging from £5 to £50, with most rewards around £10. Amounts vary and there is no fixed sum. You can find the latest details on our Monzo referral page. T&Cs apply.

The Zopa Biscuit refer-a-friend offer has ended. No active referral bonus is currently running. Check the Zopa Biscuit referral page for any current offer. T&Cs apply.

Open a Zopa Biscuit account

See the latest Monzo referral offer

Who each account may suit

There is no single winner here, because these two accounts are designed for different people.

Biscuit may suit you if you want a low-effort account that earns interest and cashback on autopilot. It works well as a secondary account for bills and savings, especially if you are happy managing money through an app and do not need advanced budgeting tools. The Regular Saver rate of 7.10% AER is a genuine standout.

Monzo may suit you if you want a full-featured digital bank with best-in-class budgeting, easy bill splitting, and seamless account switching. It is a strong option as a primary everyday account, and the paid tiers unlock travel insurance, phone cover, and higher savings rates.

You can also use both. Running Biscuit as a satellite account for bills and savings, and using Monzo as your main spending account, lets you cover each other's weaknesses.

Frequently asked questions

Can I use Biscuit as my main bank account?

You can, but Biscuit works best as a secondary account for bills and savings. It lacks the budgeting depth and CASS support that make a primary account convenient.

Does Monzo pay interest on your current account balance?

No. Monzo does not pay interest on the money in your main account. To earn interest, you need to move funds into a Savings Pot. Free users get 2.75% AER on Instant Access Pots, while Perks subscribers earn 3.25% AER. Source: Monzo.

Is the Biscuit Regular Saver rate fixed?

No. The 7.10% AER rate is variable, which means it could change at any time. The Regular Saver runs in six-month terms, and you can save up to £300 per month with penalty-free withdrawals.

How much FSCS protection do Monzo and Biscuit offer?

Both are covered by the Financial Services Compensation Scheme. Eligible deposits are protected up to £120,000 per eligible person per UK-authorised bank, building society or credit union by the FSCS (since 1 December 2025). Monzo Bank Limited (FRN 730427) and Zopa Bank Limited (FRN 800542) are separate institutions, so the limit applies independently to each.

Can I switch my bank account to Biscuit?

Not through the full Current Account Switch Service. As of June 2026, Biscuit does not fully support CASS, so you will need to redirect direct debits and standing orders manually. Monzo does support CASS if you prefer a smoother switch.

What is the Monzo referral bonus?

Monzo's refer-a-friend programme awards a random bonus to both the referrer and the new customer, ranging from £5 to £50. Most rewards are around £10. The exact amount is not fixed and may vary. Check the Monzo referral page for current terms.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Always check current rates, terms, and eligibility directly with the provider before opening any account. Referral offers are subject to change or withdrawal. CoolCuration may earn a small commission if you sign up through links on this page, at no extra cost to you. Both Monzo Bank Limited and Zopa Bank Limited are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.