By Roger Baird on Thursday 21 March 2019
The bank says its new account helps customers save a ‘little and often’.
Tandem Bank has launched a new account that automatically helps customers save a “little and often” for bigger purchases.
The bank today rolls out a savings account that pays 0.5 per cent interest, which also comes with an autosavings element.
This feature, when connected to other customer accounts, moves small change from purchases into the new savings account.
The app also uses machine learning to calculate how much customers can set aside based income and outgoings, and aims to save between 5 per cent and 15 per cent of their cash. Account holders can set the app to vary their saving levels.
The fintech said that during testing “customers found they were saving little and often rather than setting themselves unrealistic targets and being demoralised when they took money back out of their account”.
Tandem product director Matt Ford added: “Balancing saving and spending is something a lot of people find difficult. The beauty of autosavings is that you can set aside change without the hassle of manually making transfers and these small amounts will really add up, especially as you’re earning interest in the process.”