After expanding their reach with their first credit card in February, Tandem is hot on the heels of its competitors with another addition to its product suite.
Digital challenger bank Tandem has today launched three fixed saver accounts, allowing customers to grow their savings over one, two or three years on up to 2.30 per cent fixed annual interest.
These accounts have already been through beta testing by members of the Tandem team, their friends and family, and their community of co-founders. As of today, all Tandem users will gain access to the savings accounts via their Tandem banking app.
“Obviously, fixed saver accounts offer people the opportunity to put away money securely with guaranteed returns, which makes them a perfect product for Tandem,” said Daniel Goodwin, product manager at Tandem. “However, we’re also launching with competitive rates, and you’ll be able to watch your savings grow in our money management app.”
On the “1 year fixed saver”, users can earn 1.80 per cent interest, paid into their account on the anniversary of the date they made their first payment. On a two year account, they can expect 2.10 per cent, and of course with three years they can earn 2.30 per cent. That means that, for example, users who make a £1,00 deposit into a three year fixed saver can expect to receive an interest pay-out of £69 after 36 months, separated into three instalments on each anniversary.
In a bold move that appears to buck the trend of accessible finance often preferred by digital banks, the initial deposit into any of Tandem’s three savings accounts must reach a minimum of £1,000. The accounts are also inflexible, with no withdrawals allowed until the end of the product term.
Tandem’s own journey to today’s announcement has been well documented, after undergoing several revamps to its brand, business and then later acquiring Harrods Bank in January 2018. Tandem can now boast a broad range of products, having released a credit card just last month, as well as £80m of capital.
“We’re shaping a suite of products that serve as solutions to real problems that people struggle with every day,” Goodwin added. “Tandem is a bank that helps customers better manage their money, and these savings accounts are a way for people to see guaranteed returns on their cash.”
Tandem CEO Ricky Knox also commented: “It’s been a long wait for us and we’re excited to finally share these accounts with the public. We’ve got big ambitions for 2018 and are off to a fantastic start.”