Savers can now get an interest rate of up to 5% after Zopa Bank increased the returns on two of its savings accounts. The digital bank has boosted its one-year Cash ISA to 5% AER, or 4.88% gross, putting it among the highest-paying accounts currently available. Zopa has also increased the rate on its six-month fixed-term savings account to 4.65% AER, or 4.60% gross.
Both rates are available now through the Zopa app, with new and existing customers able to sign up in just a few minutes. The increases come as households begin to think more carefully about their finances ahead of Christmas and the colder winter months.
Research from Zopa found 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.
More than half (54%) also said 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.
This can be 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 the benefits as their priorities change.
Merve Ferrero, chief strategy officer at Zopa Bank, said: “While our financial needs are not fixed and evolve with the seasons and different stages of our lives, banking benefits have traditionally stayed the same. At Zopa, we think that needs to change.
“The Biscuit account gives customers more choice over the benefits they receive, allowing them to select what is most relevant to them at different points throughout the year – giving them more control over the value they get from their bank.
“That’s why we’re giving people the flexibility to choose the perks and benefits that work best for them, rather than expecting their banking to fit around a one-size-fits-all model.”
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.
One-year fixed Cash ISAs:
UBL UK offers a one-year fixed Cash ISA paying 4.98% AER with a minimum deposit of £2,000. Withdrawing money comes with 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. Savers need at least £10,000 to open the account, while withdrawals carry a 90-day interest penalty.
Skipton Building Society offers 4.96% AER fixed for 15 months rather than one year and can be opened with just £1. Withdrawals come with a 90-day interest penalty.
Virgin Money’s one-year fixed Cash ISA pays 4.77% AER and has a minimum deposit of £1. Savers who withdraw early face a penalty equivalent to 60 days’ interest.
Top-paying easy-access Cash ISAs:
Savers who would rather have easier access to their money can also find rates approaching 5%.
Trading 212 pays new customers 4.83%, made up of a 3.6% variable rate and a 1.23% bonus for one year. The account can be opened with £1 and is a flexible ISA, although transfers from previous tax years receive the lower 3.6% rate.
Chip offers new customers 4.82%, made up of a 3.5% variable rate and a 1.32% bonus for 12 months. It is a flexible ISA and allows transfers, although an interest penalty applies 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. It can be opened with £1 and is a flexible ISA, although transferred money receives a lower 3.75% rate.
Easy-access Cash ISAs from 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. It requires a minimum deposit of £100 and accepts transfers, although it is not a flexible ISA.
The Post Office pays 4.25%, including a 0.9% variable rate and a 3.35% one-year bonus. The account can be opened online with at least £100 and accepts transfers, but it is not a flexible ISA.
Tesco Bank offers 4.2%, made up of a 1.05% variable rate and a 3.15% bonus for one year. The account can be opened online or by phone and is a flexible ISA.
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.
