Tandem to close £6 month membership scheme just months after launch
The digital challenger has made a number of changes to its products in the last couple of years, with the most recent – its controversial £5.99 a month membership – coming into effect in March 2020.
And now it has confirmed it will close both its Cashback credit card offering 0.5% on purchases, as well as its Journey credit card from 2 November.
This also means its £5.99 membership scheme which offers card holders no foreign transaction fees as well as access to the Tandem Instant Access Savings Account, will be closing then.
At launch, the savings account offered 1.5% AER, before it was cut to 1.25%. This rate will drop further to 0.5% in November, Tandem confirms, though customers will no longer be charged a fee to attain the rate.
The cards will cease to work from 2 November but customers will continue to accrue cashback until then, with the amount being paid at the end of the month in each billing cycle.
If a customer spends, pays off and closes their account before a statement is generated then their cashback will have accrued but won’t be paid.
Customers will need to have cleared their outstanding balance by 3 February 2021. However, Tandem said that if any customer feels they will not be able to do this, it urges them to get in touch so a bespoke repayment plan can be made to ensure they don’t find themselves in financial hardship.
Ricky Knox, co-founder and CEO of Tandem Bank, said: “Following the successful completion of our recent investment, and the acquisition of Allium Lending Group, we have taken the opportunity to review the products and services we are building for our customers to ensure we continue to solve real people’s money problems.
“The impact of Covid-19 on the way people are now spending in the ‘new normal’, coupled with a strategic decision to invest in upgrading the core banking technology that underpins Tandem’s products and services, led us to the decision to withdraw our current credit card offering.
“That doesn’t mean we won’t be offering a ‘spend’ solution again but simply means our immediate focus will be on building the very best savings products we can and helping more and more of our customers fund their green home investments.”
The Tandem cashback credit card was launched in February 2018 and to date, users have earned nearly £1.4m in cashback and saved £2.1m in foreign exchange fees.