Tandem automates earning interest

The bank first launched its savings accounts in April.

Earlier this year, Tandem Bank snaffled savings app Pariti. The rationale behind the acquisition is now coming into focus.

Pariti, run by Matt Ford, was a personal finance management app that helped people get on top of their finances. Its method was to connect to users’ bank accounts and suggest spending limits that would help them generate savings.

Today, Tandem has launched a range of auto-savings rules, designed to help its customers save more.

Triggering these rules will cause money to be shifted into a Tandem saving account, where it will earn interest. The bank first launched its fixed savings accounts in April of this year, paying up to 2.30 per cent annually.

Somewhat like Pariti, Tandem connects to all of its users’ bank accounts, giving them a comprehensive overview of their finances. With its new automated savings rules, spending on a certain day of the week through a connected account, for example, could zap cash automatically from that account over to Tandem. The new tool seems a clever way of diverting assets away from its more traditional rivals.

Tandem says the new rules can be configured ‘for any situation’.

Matt Ford (pictured), product director at Tandem and former CEO of Pariti, commented: “Improving savings habits is one of the hardest things someone can do – in fact, there is a whole library of books written about why people find it so hard to save and what they can do to make a change. Almost everyone we have spoken to wants to save more, but often find it difficult to adjust their spending habits and free up money. Setting aside lump sums isn’t always the best approach. We aim to make it as easy as possible for users to get started, showing that small, regular savings can actually lead to saving large amounts.”

A recent survey from Tandem found that over a quarter of Brits don’t set any money aside each month.