With so many digital banks on the market, choosing the right one for you can be difficult. And when you hear that the Tandem bank account isn’t actually a current account, you may think it’s not even worth considering. But the savings rates on offer might help you to change your mind.
Tandem summary
Pros and cons:
✅ Great interest rates
✅ Choose between fixed and instant-access
✅ Connect other bank accounts for an overview of your finances
❌ Borrowing costs can be expensive
❌ Not much else available from Tandem
Tandem
Tandem Bank
For many years, the banking sector seemed to be dominated by a few large banks. And that wasn’t great for the consumer as it meant they were never inclined to give us good value for money or great service. But in more recent times, we have seen challenger banks come to the market and they have helped to shake things up.
Not only have these new banks come with more competitive rates, but they often offer a better mobile banking experience compared to traditional banks. And as more of us are moving away from computers, a decent mobile app is essential.
Today, we’re going to take a look at Tandem Bank, to see what this new account brings to the table.
What is Tandem Bank?
Instead of offering a current account and debit card, Tandem focuses on savings products, mortgages, and loans through its banking partners. Tandem sells itself as a fairer, greener digital bank.
Tandem Bank is owned by Tandem Money and was founded by Ricky Knox, Matt Cooper and Michael Kent in 2013. In 2018 Tandem, acquired Harrods Bank, which gave them a banking licence and full bank status. Tandem is a British company registered to an address in London.
Is Tandem Bank safe?
Tandem Bank is regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS). That means that if something should happen to Tandem, you are covered by the UK government for up to £85,000.
The Tandem app uses security features like bank-grade encryption to keep your account safe.
Also worth reading
If you want to switch to a digital bank, take a look at this Monzo review as a decent alternative.
Does it cost?
There are no monthly fees attached to using Tandem Bank.
Tandem benefits
First of all, we need to be clear that Tandem has changed a fair amount over the last few years and there aren’t as many features on offer. Some of the features removed include:
Round ups
Initially, through the convenience of open banking, you could link your current accounts to Tandem which was a great way to keep track of your spending. There was a round up feature, which would transfer your spare change from your main current account over to Tandem and place it into your chosen savings accounts. But this option was removed a couple of years ago.
Tandem cashback credit card
Tandem’s credit cards were also a feature that should have appealed to many. You could earn cashback when spending and you received good exchange rates when using abroad. But the Tandem credit card was closed in February 2021.
So, what’s left?
Instant access account
If you want to earn interest on your savings over the short term and need easy access, Tandem’s instant account pays a fairly decent 4.65% interest, far above many of its rivals.
Finances overview
Through open banking, you can link your bank account(s) to the Tandem app. This can be useful if you have multiple current accounts, as it will give you an overview of how much you have in total. However, there’s no breakdown of transactions or any budgeting options, which would be a helpful addition.
Mortgages
Tandem offers bespoke, high-value mortgages for UK residents, ex-pats and foreign nationals in the UK & abroad. The minimum amount you can borrow is £500,000 and the maximum limit is £5m. You will need to contact Tandem directly through the email address listed on their site for their latest rates.
If you take out a new second-charge mortgage, you could get a reduced rate of up to 0.5% based on the EPC rating of the property.
Loans
Through Tandem’s partners, you can apply for secured or unsecured loans. But these don’t seem to offer better rates than you can find elsewhere.
Fixed savings
The fixed-rate saver allows you to put money away for a fixed term of between 1-2 years. The advantage is that you will know how much you will earn over the longer period, so interest rate changes won’t affect you so much. However, that money is there for that period and you cannot withdraw it.
The minimum you can deposit is £1,000, and the maximum is £2,500,000. As you can see, the rates are quite competitive compared to a high-street bank.
Tandem Bank interest rates
| Term | Instant Access |
| Instant access | 4.65% |
| 1 year | 4.50% |
| 2 years | 4.35% |
What other people think
Trustpilot for Tandem Bank reviews shows that customers are generally happy with their experience using the app, scoring a great 4 out of 5. However, over a quarter of customers scored Tandem 1 out of 5. Many of the complaints are about difficulties in transferring products and poor customer service.
My Tandem Bank review conclusion
In all honesty, the Tandem account is now a little limited. It’s a real shame because the credit card and round up features were incredibly useful. I can only assume they were dropped because they were too expensive for Tandem to run.
And to say that the rates on offer underwhelm me if you take out a loan is a little bit of an understatement. If you have a decent credit score, I’m sure you can get better deals elsewhere.
But fortunately, all is not lost. There’s no doubt that the Tandem savings account rates are very competitive. In fact, you won’t find many other banks that can beat or even match the interest rates on offer.
So, if you’re looking for a cash savings account through online banking, then Tandem really is an account worth considering.
If my Tandem review has you interested in finance apps, why not take a look at my review of the best budgeting and personal finance apps.