TANDEM TO LAUNCH ‘AUTO SAVINGS’
Tandem’s new intelligent auto-savings rules help customers choose how they regularly set aside their spare change to kickstart a savings habit and accelerate progress towards their goals
Savings are swept from their existing current accounts, connected to the Tandem app, and into a new interest-bearing Tandem account
Using learnings from behavioral science, Tandem will combine their new rules with a series of in-app prompts and notifications to help nudge people into improving their savings habits
Today Tandem Bank announces plans to launch a set of auto-savings rules, designed to help customers save more.
This autumn, customers will be able to choose a set of rules that suit their needs. When a rule is triggered, perhaps spending on a certain day of the week or from a connected account, money will be automatically moved from their current account into their Tandem account. This money will then start to earn interest.
The aim is to help customers in varying financial positions improve their spending habits. For those who are struggling to get started with saving, are looking to accelerate their rate of saving or just want to start earning interest, the new rules can be configured for any situation. No two people are in the same financial situation, and auto savings will let them choose the best savings solution for them.
Customers are encouraged to start saving little and often, building up a regular rhythm of saving, before saving increasing amounts and making progress towards sought after goals. In a recent survey*, Tandem found that over a quarter of Brits don’t set any money aside each month. Many people who do save, especially millennials, are setting themselves unrealistic goals and struggling to stick to them, with over a third setting aside money, only to take it back out again.
Matt Ford, Product Director, says, “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.”
The Tandem app already aggregates a user’s data from all of their bank accounts and cards, something that gives them access a comprehensive view of their finances and a growing suite of AI driven highlights that offer tailored advice. This could be anything from flagging a duplicate payment, to noting a rising bill and suggesting a cheaper provider. This new flexible saving solution will give users entirely new ways to proactively set money aside and earn interest – their way – by harnessing this same data.
Ricky Knox, Tandem CEO, adds, “The new Tandem account will allow customers to move money in and out of their account as frequently as they like, earning interest as they go. Once they have saved a certain amount, they will be able to move this money into a Fixed Term Saver, where we provide people with market leading rates when they put money away for a year or more. We started Tandem to help customers in ways that existing banks simply aren’t doing. It’s about identifying real problems and offering great tools to help people.”