Tandem Bank launches ‘round-up’ savings account for your spare change
Purchases made from any linked current account are rounded up to the nearest pound and the extra pennies are moved into the new savings account, which pays 0.5% interest.
Another optional feature of the new account – called ‘safe to save’ – calculates how much money a customer has going spare and sets it aside automatically.
Users can set their saving level using a slider from minimum to maximum savings, which aims to save between 5% and 15% of their income.
Customers can link multiple current accounts from other providers to the Tandem app.
To use the ‘safe to save’ and ’roundup’ rules a customer will need an account with one of the following providers: American Express Cards, Barclays, HSBC Bank, Halifax Online, NatWest Bank, Royal Bank of Scotland, Barclaycard, Capital One, Santander, Lloyds, TSB, Nationwide Building Society, First Direct, Tesco Bank, Bank of Scotland, Metro Bank, M&S Bank and. MBNA
But they can move money in and out of their Tandem account and set up weekly deposits from any bank account.
Tandem isn’t the first of the app-only bank to unveil a round-up feature to make saving easier.
Monzo and Starling both automatically round up purchases and transfer the spare change into a savings account. But this feature only works when purchases are made with a Monzo or Starling debit card.
The Moneybox app also automatically rounds up spending, but the extra money is transferred into an investment account, rather than a savings account. You can choose from a stocks & shares ISA, Lifetime ISA, general investment account or junior stocks & shares ISA.