Why the Need to Save?
According to the Office for National Statistics (ONS), in the UK, 50% of 22 to 29 year-olds are living with no savings. Furthermore, it is reported that around 16 million people have less than £100 saved for a rainy day or emergency. This puts a large portion of the UK population at risk of getting into a vicious debt cycle. For these reasons, Tandem Bank is launching the Savetember campaign.
Savetember is an annual month-long initiative to try and get as many people saving as possible. Tandem is posting top tips across their social media on how to save easily as winter approaches. Tips will also be from guest writers, on everything from date night savings to online shopping. Furthermore, they launched a prize giveaway.
Tandem Challenger Bank
Tandem is a UK challenger bank that is aiming to help people increase their savings. They’ve created ways to save using their debit card which make it seem effortless. Tandem has leveraged the open banking initiative so that it can act as a Personal Finance Manager (PFM). This means that you are able to aggregate the banking information from your other non-tandem bank accounts, into their app. By being able to see the balances of all your debit, credit and saving accounts, both you and Tandem’s ML algorithm can be more aware of your financial health. Tandem will then give you updates with any advice.
Another feature which Tandem offers is “Safe To Save”, which is enabled via its ML algorithm. Tandem analyses your outgoing costs from your connected accounts, compared to your income, then calculates how much you can afford to save. Each month a pot of money is moved into a flexible Tandem savings account to earn 0.5% interest. “Round-ups” let you round-up purchases to the nearest pound, transferring the difference to your savings account. Then lastly the “Regular Deposit”, making an automatic weekly or monthly deposit into your savings. In addition to all of this, they offer fixed savings accounts with impressive rates. The three savings accounts on offer are: 1 year account earning 1.6%, 2 years earning 1.8% and 3 years earning 2%. All three are fixed savings accounts with interest paid as AER.
Social FinTech Sector Helps Low Earners
Although creating a savings account when you have a low income can seem daunting, with time, the total adds up. This can be essential for when an unexpected financial event occurs. Downloading a smart-app like Tandem can make the process possible and easy. If you do find yourself in the need of cash, then check out this social FinTech startup tackling payday poverty. Wagestream allows you to get early access to the wages you’ve already worked that month, for only £1.75. With thanks to the social FinTech sector, there are now more ways to tackle these types of financial problems. Why not try to save a little this Savetember?