Tandem Bank Interest Rates - What to expect

If you’re looking to save and earn interest with a straightforward digital service, you may be wondering what interest rates are available from Tandem Bank®¹.

This guide walks through the Tandem Bank interest rates for different products, plus we’ll introduce an alternative digital account from a non bank provider - Wise - which lets you save in GBP, USD and EUR².

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Intro to Tandem Bank

Tandem Bank is a UK licensed digital bank which operates entirely online and through its app. Tandem Bank products include savings accounts, mortgages and loans, such as loans for home improvement or to buy an electric vehicle.

Tandem Bank is focused on providing products and services which let customers affordably improve their carbon footprint and live a greener and more environmentally friendly life.

What interest rates are offered by Tandem Bank?

The Tandem Bank interest rates that apply to your account will depend on whether you select an account where you can always access your funds - the Instant Access Saver - or you choose to lock your money away for a fixed period of a year or more in the Fixed saver account.

Tandem Bank savings account interest rates for the instant access account products are variable - that means they can be changed at any time, although the bank will let you know if a change will impact your account. When you lock your money in a fixed term deposit account, the interest rate is also fixed. That means that as long as you leave your money with Tandem for the agreed length of time, the interest rate you lock in will also be honoured.

At the time of writing, the Tandem Bank interest rates are as follows:

• Tandem Instant Access Saver - 4.65% AER³
• Tandem Fixed Saver - 5.85% AER⁴

Bear in mind that interest rates can change. These rates are correct at the time of writing - 23rd August 2023 - but you’ll need to double check the live rate before you make a deposit.

How does the Tandem Bank interest rate compare with the Wise Interest rate?

If you’re looking for alternatives to Tandem Bank you may also be interested in Wise.

Wise isn’t a bank, it’s an Electronic Money Institution regulated by the FCA in the UK, similar to how other financial service institutions, such as banks and savings accounts, are. Wise offers digital multi-currency account and card services which can include ways to keep instant access to your funds while earning returns. Plus, with Wise you can also earn returns on your invested balances with Wise Interest on GBP, EUR and USD. (Not available for US residents).

At the time of writing you can get variable interest of 4.70% on your GBP funds (rate correct as of 23rd August 2023) while still being able to get your hands on your funds whenever you need to. It’s the smarter way to manage your money internationally. However, bear in mind that investments, even in a low-risk fund are never guaranteed.

What is Wise Interest and how does it work?

As we mentioned, Wise isn’t a bank - so Wise Interest does work a little differently to the way a bank savings account might.

With Wise you’ll first need to open a digital multi-currency account and get verified - this can all be done from your phone, simply by uploading images of your ID and address documents. Once you have a Wise account you can add funds in GBP (or a selection of other currencies), and if you’d like to earn returns, you’ll activate the Wise Interest option? Your money is then invested in an interest earning fund which holds high quality government guaranteed assets.

You’ll still be able to spend your Wise balance as and when you like, and the returns you earn is deposited to your account daily. This means you can easily keep track of what returns you get and your funds will compound over time.

The fund your Wise balance is held in is considered to be low risk, and designed for stability. Bear in mind though that returns on any investment are not guaranteed - and you may have to pay tax on the money you make in Wise Interest.

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Do more with Wise

Wise accounts allow you to hold and exchange 40+ currencies, and order a linked international debit card for spending in 150+ countries. You’ll get the mid-market exchange rate every time you convert from one currency to another in your account, or when you spend with your card overseas. Plus you can send fast or even instant payments⁵ to 160+ countries with low fees from 0.43%⁶. See if a Wise account can let you do more with your money, today.

Sources:

Sources last checked: 23rd August 2023

Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.