Mobile bank Tandem is aiming to launch an automatic savings tool this autumn, allowing customers to choose rules that will result in money moving from existing current accounts from other providers to a new Tandem account. The bank has created a new set of auto-savings rules where customers can choose the ones that best fit their needs, giving them the choice to set aside spare change on a regular basis. Once a rule is triggered, whether that be a specific day of the week or from a connected account, the money will automatically move into the Tandem account, with the ability to earn interest.
RFi Group research shows that in the 3rd quarter of 2018, 38% of savers with savings goals believe it would take them more than 5 years to indefinitely to save before reaching their goal. Not only this, 30% of savers feel like they are being stopped from reaching their savings goals, with this proportion increasing significantly among Millennials (33%). While having no money left to save after expenses being the key barrier to reaching savings goals in general, Millennials are significantly more likely to state that they have trouble budgeting (21%) compared to the market average of 11%.
The new savings feature will help to overcome these barriers in order to boost savings where according to Product Director at Tandem, Matt Ford, “Almost everyone we have spoken to wants to save more, but often find it difficult to adjust their spending habits and free up money. 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.”
When customers have saved a particular amount into the Tandem account, they’ll have the ability to transfer these funds into a fixed term saver account, which offers market-leading rates for customers putting aside funds for at least a year.