Who is eligible for a current account with cashback and interest?
Most cashback and interest-paying current accounts are open to anyone aged 18 or over living in the UK. A soft credit search is usually all it takes to check your eligibility and some banks, including Biscuit by Zopa, don't require a hard credit check to open an account at all. The main thing to get your head around is that qualifying for the account and qualifying for the rewards are two slightly different things.
By the end of this guide, you'll understand:
What cashback and interest-paying current accounts actually are
The basic eligibility requirements most banks look for
How monthly pay-in and direct debit conditions work
What your options are if you have limited or poor credit history
How to check your eligibility without touching your credit score
What to consider before you apply
What is a cashback or interest-paying current account?
Both cashback and interest-paying current accounts are known as reward current accounts, designed to give you money back as you go about your everyday spending.
A cashback current account gives you back a percentage of what you spend on things like everyday purchases, Direct Debits, or at specific retailers. You can read more about cashback accounts in our guide, How Does Cashback Work on a Current Account?
With an interest-paying current account, you get a return on the money sitting in your balance – like what you’d expect form a savings account. Most standard current accounts don’t give you any interest on your balance at all, so one that does is genuinely worth paying attention to.
We’re chuffed to say that Biscuit by Zopa ticks both boxes: a cashback and interest current account designed to make your everyday spending work a little bit harder.
General eligibility requirements
Most banks keep their eligibility requirements pretty simple for reward accounts, broadly looking for the same few things.
Age and UK residency
You'll need to be at least 18 years old and a UK resident to open a cashback or interest-paying current account. Some banks offer cashback to younger customers on junior or teen accounts, but full reward current accounts are typically restricted to adults. It's always a good call to check specific terms with your chosen bank – the eligibility criteria for Biscuit by Zopa is right here.
Credit check requirements
Applying for a current account typically involves a credit check. Most banks run a hard credit search when you apply, which will show up on your credit file. The impact is usually small and temporary, but it's good to be aware of it.
A current account credit check looks at things like your borrowing history, whether you've missed payments, and how much credit you currently have. It's less intensive than a mortgage or loan application – providers are mainly checking that you're who you say you are and that there are no major red flags.
Some banks – including Zopa – don’t run a hard credit search when you open an account, so there’s no chance of your credit score being affected.
Monthly funding requirements
This is where reward accounts can vary a bit. A lot of cashback and interest accounts ask for a minimum monthly amount – typically somewhere between £500 and £1,250 – to unlock the rewards.
To be clear, it's not about how much you earn – just how much you actually use the account. So if your salary is paid in directly and you use the account regularly, you'll probably clear this threshold without thinking about it.
But if you're self-employed, paid irregularly, or planning to use the account alongside another, it's worth double-checking whether you'd consistently meet it.
There’s no minimum monthly pay-in with Biscuit – you just need to set up at least one Direct Debit to start getting cashback. It’s a really easy way to earn interest and cashback without needing to totally restructure how your money moves around.
Direct Debit requirements
Alongside monthly pay-ins, some providers also ask you to maintain a minimum number of active Direct Debits.
If you already have a couple of bills, subscriptions, or regular payments set up by Direct Debit – think broadband, a gym membership, or an energy bill – this probably won’t be an issue.
With Biscuit, you simply earn cashback on up to £125 of Direct Debits each month.
What if you have a limited credit history or bad credit?
A thin credit file and bad credit aren't quite the same. Bad credit usually means a history of missed payments, defaults, or county court judgements (CCJs). A limited credit history simply means you haven't had much opportunity to build a track record – normal if you're young, new to the UK, or have never taken out a credit card before.
If you have a limited credit history rather than a poor one, your chances of being approved for a reward current account are generally pretty good. Banks are looking at risk, and a lack of data isn't the same as risky behaviour.
If your credit score is genuinely low, a reward current account may be harder to get. But some banks are more flexible than others – your credit history has no impact on whether you’re able to open a Biscuit account, for example.
How to check eligibility without affecting your credit score
If your bank requires a hard credit search to open an account, you could use a soft search eligibility checker to get an idea of whether you're likely to be approved first.
Comparison sites like MoneySavingExpert and Moneyfacts have eligibility checkers you can use for the main cashback and interest-paying accounts – a good way to help you narrow down the options before you go any further.
What to consider before applying
Before you hit apply, remember that eligibility and value aren't the same – you might qualify for an account but find the rewards aren't worth much given your spending habits.
Here's a quick checklist to run through:
Can you consistently meet any monthly pay-in amount?
Can you set up the required number of Direct Debits?
Does the cashback apply to shops and services you actually use?
Is the interest rate competitive?
Are there any monthly fees, and do the rewards outweigh them?
Biscuit is designed to keep things simple all-round – no monthly fee or minimum pay-in, 2% AER* interest on your balance, and 2% cashback on bills. Basically, it’s an easy way to earn extra cash from money you’d be spending anyway. In fact, you could earn up to £192** a year. Find out more about Biscuit, our cashback and interest current account.
*AER stands for 'annual equivalent rate'. We pay you interest on a monthly basis, but AER shows you the rate you’d get if this monthly interest was compounded and paid once a year instead. We provide an AER to make it easier for you to compare our rates with other providers.
**The £192 figure is made up of £30 cashback, based on earning 2% on up to £125 per month of household bills paid by Direct Debit, and £89.20 in interest based on the average UK current account balance of £4,460 earning 2% AER (1.98% gross). It also includes £72.92 in interest from two consecutive 6-month Regular Saver pots paying 7.10% AER (6.87% gross), assuming you save the full £300 each month.
