Atom bank launches innovative Instant Saver Reward product and looks to kill off ‘zombie’ savings accounts
18 November 2024
Atom bank launches innovative Instant Saver Reward product and looks to kill off ‘zombie’ savings accounts
- Atom bank launches new innovative Instant Saver Reward product to help kill off millions of low interest ‘zombie’ savings accounts
- The product rewards savers with a higher rate when they don’t withdraw and resets monthly if they do, with no annual limit on access to cash
- Rachel Springall, Finance Expert at Moneyfacts suggests the product offers “flexibility and rewards savers with a competitive return on their cash”
- At 4.85% AER, Atom bank’s Reward rate is one of the highest in the market, while the 3.25% AER Withdrawal rate still offers savers almost 2x more than the average high street bank easy access rate*
Atom bank, the UK’s first app-only bank, announces the launch of its innovative new Instant Saver Reward product, providing another option for the millions of savers who are missing out on a decent rate with their current bank.
The digital bank provides great value products for savers that are simple to use and quick to open. The Instant Saver Reward encourages customers to save by providing a higher ‘Reward’ rate when no withdrawals are made in a month, while recognising that they will often need the flexibility to access their money. Crucially, if a withdrawal is made, the interest rate resets to the higher Reward rate the following month, allowing another opportunity to earn a higher rate if there is a withdrawal-free month.
Killing zombie savings accounts
Atom’s Reward rate of 4.85% is one of the highest rates available currently and provides a strong incentive to save. If withdrawals are made during the month, the rate drops to 3.25%, a rate that still comfortably betters the best Instant Saver rates provided by high street banks (average 1.74% AER*).
As well as poor easy access rates, recent data from the Building Societies Association (BSA) found that millions of savers are missing out on additional interest by keeping their savings in current accounts which pay little or no interest**. A third of savers hold most of their savings in their current account, according to the BSA, with £248.9billion stashed away in accounts paying no interest, according to Bank of England data. Moreover, research by Atom found nearly a third (30%) of people had never switched their savings account to a different provider***.
Atom bank’s Instant Saver Reward will bring more choice to the savings market, to save people from those low interest ‘zombie’ accounts, and ensure their money works as hard as it possibly can for them.
Easy to use
While other products in this space allow a limited amount of withdrawals in a year, often with significant penalties, there is no limit with the Instant Saver Reward product, and the monthly rate reset ensures that their money keeps working harder for them.
Atom offers an in-app interest rate dashboard to help savers track their saving streak, and the level of interest they will receive, helping them establish healthy saving habits in the long-run. New customers joining the bank will benefit from a simple sign-up process and industry leading customer service, with Atom bank holding 5-star ratings on both the IOS and Android App Stores, and on Trustpilot, whilst consistently delivering Net Promoter Scores (NPS) in the high 80s.
Mark Mullen, Chief Executive of Atom bank, comments:
“Loyalty to your bank can be bad for your financial health. All too often, high street banks offer products that are designed to pay customers as little as possible. Millions of accounts that pay less than 2.00% aren’t even keeping pace with inflation. They’re the banking equivalent of zombies.
“Our new Instant Saver Reward is a zombie killer. It’s another example of how Atom delivers better value for UK savers. Switch to Atom and bring your money back to life.”
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:
“It’s exciting to see a new easy access account launched for consumers that offers flexibility and rewards savers with a competitive return on their cash. The Instant Saver Reward from Atom Bank sits highly in the top rate tables and may be an attractive choice for savers who don’t want to lock their money away for too long.
“It’s positive to see Atom Bank recognise the needs of savers to access their pots. Unlike other easy access accounts, the rate reduction for making a withdrawal will reset the following month, plus, there is no limit to the number of withdrawals someone may need to make throughout the year.
“Saving little and often is the key to building up a decent nest egg over time, and keeping track of a rising pot and the subsequent interest earned can motivate the savings habit.”
ENDS
Notes to editors
*Atom analysis shows 1.74% AER as the average easy access rate from Lloyds, Barclays, HSBC, Natwest, Nationwide and Santander vs Atom bank 4.85% AER Reward rate and 3.25% AER Withdrawal rate. Correct as of 14th October 2024.
*** This research was conducted by Opinium, on behalf of Atom bank. They surveyed 2,000 UK adults aged 18+ online between 3 October - 8 October 2024. The results have been weighted to be nationally representative.
Product criteria
- To open an account no minimum balance is required, and there is no minimum or maximum withdrawal limit.
- Funds can be deposited or withdrawn at any time.
- To open an account, this must be done via the app and only one account can be opened per customer. Only available to UK residents.
- Interest is paid monthly on the anniversary of account opening.
- Maximum aggregated balance of £200,000, of which £100,000 can be held in Fixed Savers and £100,000 across easy access accounts, including Instant Saver variants and holding accounts.
For more details journalists can contact:
For Lansons
Ed Shelley, eds@lansons.com, 07825 427522
Sorcha Hornett, sorchah@lansons.com, 07712 805191
For Atom
Robbie Steel, robbie.steel@atombank.co.uk, 07538 775 701
About Atom bank
Atom bank is the UK’s first app-based bank, on a mission to make the experience of borrowing and saving faster, simpler and better value than anyone else.
The bank launched operations in April 2016, and offers award-winning mortgages and savings through its app, alongside commercial mortgages for small and medium-sized enterprises.
Based in the North East of England with a team of over 500 people, Atom is here to change banking for the good, for the better, and for everyone. This means focusing on customers’ needs, delivering better value than the incumbents, providing an exceptional app-based experience and offering award-winning customer support via phone, chat, email and social channels. The bank has some of the best customer service credentials in the UK, having achieved 5-star ratings on both the iOS and Android App Stores, and on Trustpilot, whilst consistently delivering Net Promoter Scores (NPS) in the high 80s.
Based in Durham, Atom is an engaged and active member of the North East Community. In 2022 Atom signed a five-year Memorandum of Understanding with Durham University to progress key research and diversity initiatives. The region has one of the highest levels of youth unemployment in the UK and Atom is passionate about addressing the critical digital skills gap and helping develop young people and other groups that are under-represented within the industry.
As of November 2021, all employees enjoy a four-day working week, after Atom became the largest company - and only bank - in Britain to introduce the policy, with no reduction in salary.
The Atom executive team are highly experienced, having built and run some of the most well-respected banks in the UK. CEO Mark Mullen has 30 years’ experience in the sector and was previously CEO at the multi- award-winning telephone and internet bank first direct. The team is supported by a strong non-exec board, chaired by Lee Rochford.