Savings account: Bank releases ‘highly competitive’ account – but Britons urged to act now

Martin Lewis discusses negative interest rates

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Bank account interest rates have been impacted by the Bank of England’s decision to reduce its base rate to 0.1 percent – the lowest in its history. This move has created shockwaves since it was first announced in March 2020, and one by one, attractive interest rates have been pulled from the market. For those hoping to grow their money, options seem limited, but a new account could be of interest.

Tandem Bank, a fully-fledged bank account and popular provider has unveiled a new Green Instant Access Savings Account with an attractive rate.

The new account is aimed at being environmentally-friendly, but another key benefit is its interest rate.

As an instant access account, the new Tandem Bank offering has a headline interest rate of 0.5 percent AER, likely to attract savers.

Amid the current climate, finding a place which will help Britons grow their funds in this way is a challenge.

But Tandem Bank states “protecting the planet does not have to mean compromised returns”.

For those concerned about using a bank which is perhaps less familiar, there is no need to panic.

This is because Tandem is registered with the Financial Services Compensation Scheme (FSCS), meaning all savings up to a value of £85,000 will be protected should the worst happen. 

Ricky Knox, co-founder and CEO of Tandem Bank, commented on the release.

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He said: “We’re on a mission to educate and empower consumers about green finance.

“We’re making it simpler and quicker for them to achieve sustainable living, both with respect to the environment and their money.

“I originally founded Tandem with the number one intent of building ‘The Good Bank’ – one that puts customers’ needs first and takes the stress out of money management.

“The launch of the Green Instant Access Savings Account and our other green products and services that will follow suit, demonstrate our commitment to building ‘The Good Green Bank’.

“This is one that enables customers to understand and reduce the environmental impact of their finances and helps to create a more sustainable planet for us all.”

Tandem has said it is committed to becoming the first green digital bank.

It now has plans for a range of environmentally friendly products such as mortgages also.

For those who are looking for an interest rate to suit their needs and goals, it is generally encouraged to shop around.

Britons will need to find an account which both provides the interest rate they are looking for, as well as the right level of access to cash they require.

Some will be able to lock funds away for a set period of time, while others will need more frequent access to their money. 

Rachel Springalll, finance expert at Moneyfacts, commented on the new release.

She said: “One of the most popular savings accounts for consumers are easy access accounts so its great to see this attractive deal launched by Tandem Bank. Not only is the rate of 0.50 percent highly competitive and permits unlimited withdrawals, but savers would be saving more ethically too.

“If savers are unfamiliar with Tandem Bank, it is worth pointing out that they are fully protected by the Financial Services Compensation Scheme, so there is no difference in protection to a more familiar high-street bank.

“Interest rates on savings accounts continue to fall to record lows and a good deal can get snapped up quicky, so savers would be wise not to wait around too long to take advantage.”

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