App-only bank Tandem Bank has unveiled plans for a pioneering set of auto-savings rules designed to assist customers in enhancing their savings habits.
Starting this autumn, customers will have the option to select rules tailored to their personal needs. When a rule is triggered—such as spending on a particular day or from a specific account—funds will be automatically transferred from their current account into their savings account, where they will begin to accrue interest. The objective of this initiative is to aid individuals in different financial situations in refining their saving practices.
For those at the beginning of their savings journey, wishing to accelerate their savings rate, or seeking to earn interest on their funds, the new rules are adaptable to any scenario. Customers are encouraged to start saving small amounts frequently, establishing a regular savings habit, and gradually increasing their savings to achieve significant financial goals.
According to a recent survey, over a quarter of British individuals do not set aside any money on a monthly basis. Among those who do save, many, especially millennials, set unrealistic goals and struggle to maintain them, with more than a third withdrawing their savings prematurely. Matt Ford, product director, stated, “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.”
Ford added, “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 app already consolidates a user’s data from all their bank accounts and cards, providing a comprehensive overview of their finances. It also offers an expanding suite of AI-driven highlights delivering tailored advice, such as flagging duplicate payments or alerting users to rising bills and suggesting cheaper providers. This new flexible saving solution leverages the same data, enabling users to set money aside and earn interest proactively according to their preferences.
Ricky Knox, the Chief Executive Officer, explained, “The new 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.”
Knox further commented, “We started this initiative to assist customers in ways that existing banks simply aren’t capable of. It’s about identifying real problems and offering great tools to help people.”
This intelligent auto-savings feature signifies a forward-thinking approach to personal finance, offering flexible, tailored solutions to improve savings habits for a wide range of customers.