Tandem Bank boots interest rates to 5%

Tandem Bank is the latest fintech to increase its instant access savings rates after the Bank of England increased interest rates for the fourteenth consecutive time last week.

The green digital bank is increasing its rate to 5 per cent from 4.36 per cent, following the move of Monzo, Starling Bank, Zopa and Chase.

“We continue to offer a leading proposition for hard working savers across the UK. With interest rates continuing to rise, we’re looking after our customers by raising the rates,” Tandem CEO Alex Mollart said.

The bank, which saw its first full year of profitability in 2022, as exclusively revealed by AltFi, offers its users a range of saving products, including instant access and fixed rate offerings ranging from one to five years.

“Hopefully this will be a prompt for all to review where they hold their savings,” Mollart said.

“At Tandem we look to support banking for a greener future with customers’ savings supporting green lending and initiatives.” 

Tandem’s competitor Starling locked in a guaranteed return rate of 5.25 per cent on its one-year fixed saver accounts, while Monzo increased its rate to 4 per cent from 3.7 per cent, Chase moved up to 4.1 per cent and Zopa passed along the 0.25 per cent base rate to reach 4.28 per cent.