Tandem Bank is introducing an auto savings feature that lets customers set up rules that automatically move small amounts of money from their current accounts with other providers to a savings account with the challenger.
The new set of intelligent auto-savings rules are designed to help customers choose how they regularly set aside their spare change. When a rule is triggered, perhaps spending on a certain day of the week or from a connected account, money will be automatically moved from their current account into their Tandem account, where it will start to earn interest.
Tandem - which does not offer current accounts - says that it wants to help Brits get into the habit of saving "little and often", building up a rhythm before increasing amounts and setting goals.
The bank cites a survey of more than 3000 people which shows that over a quarter of Brits don’t set any money aside each month. Many people who do save, especially millennials, are setting themselves unrealistic goals and struggling to stick to them, with over a third setting aside money, only to take it back out again.
Matt Ford, product director, Tandem, says: "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.”