Tandem Bank review

Tandem was one of the first digital banks in the UK. Since then, it has evolved with a mission to help 'consumers reduce their carbon footprint, save, borrow and spend a little bit greener' and has partnered with companies such as Oplo and Allium money.

In this review, we focus on Tandem Bank's savings products, but additional information on its other products can be found on the Tandem website. We also explore alternatives such as Starling Bank* and Plum*.

What is Tandem?

Launched in 2015 by founders Matt Cooper, Michael Kent and Ricky Knox, Tandem was created to 'get you and your money moving in the right direction'. Tandem is a fully-fledged bank account which means that up to £85,000 of your money is protected by the Financial Services Compensation Scheme (FSCS).

Tandem was previously best known for its innovative savings features where it used artificial intelligence to analyse your spending habits and suggest an amount for you to save. Nowadays, its focus is on "building the UK's greener bank" with aims including financing greener products to help people save money and reduce their carbon footprint in the process. So far, Tandem has lent its customers more than £523mn for green home improvements and also helped "avoid" 74,000t in CO2 in 2023 alone according to its impact statement.

The company won Savings Champion's 2023 award for the "Best App Based Savings Provider" category. The app itself has been downloaded more than 120,000 times so far.

How does Tandem work?

Currently, Tandem offers 1,1.5, 2,3, and 5-year fixed savings accounts, as well as an Instant Access savings account.

To join Tandem you need to download the app from the App Store for iPhone, or Google Play Store for Android and register for an account. You will need to enter your personal details and create a password as well as connect your chosen savings account to your current bank account.

Tandem allows you to set up one regular transfer via the app if you have an Instant Access savings account. This helps automate your deposits via your external UK bank account. You can tell the app how often you want your money transferred - daily, weekly, fortnightly and monthly. Then, you can set an amount of your choice and have your money automatically transferred to your savings account.

Tandem features

• Fixed savings accounts - Choose from 1, 1.5,2,3 or 5-year fixed savings accounts and earn up to 4.25% AER
• Instant Access Saver - Earn up to 4.65% AER
• Tandem Mortgages - Buy-To-Let or Residential + Foreign Income mortgages from £500k - £5m
• Loans - Personal and secured loans via the lender Allium (part of the Tandem Group)
• Motor Finance - finance your used vehicle with Tandem Motor Finance
• FSCS protection - your money is protected under the Financial Services Compensation Scheme up to £85,000

Tandem Instant Access savings account

Tandem offers an easy access savings account and savers can earn up to 4.65% AER interest on the balance. The interest rate on the account is 4.40% AER variable but if a top up is applied to your account you can benefit from an additional 0.25% interest to make it 4.65% interest in total. You can make manual transfers from your linked bank account and the money you have saved can be withdrawn by transferring it into your linked bank account.

If you deposit £1,000, you could have about £1,046.50 after 12 months assuming you get the boosted interest rate, the interest rate doesn't change, and you make no further withdrawals or deposits.

You can connect your bank account to your Tandem account via open banking and the account you use to fund your Tandem account must be in your name.

Tandem Instant Access account features: 

• Your money is protected up to £85,000 with FSCS
• Withdraw money into your connected bank account
• You can hold a maximum of £250,000
• Interest is worked out daily and paid monthly

Tandem eligibility to apply:

• 18+
• A UK resident with a current address in the UK
• Have a UK current account

Tandem 'fixed savers' savings accounts

Tandem offers the choice of three fixed-savings accounts with competitive interest rates. A fixed savings account guarantees the interest rate for a period of time but you cannot access your money until the account matures at the end of the term. Below is a comparison table with the Fixed Savings accounts that Tandem currently offers. For the best fixed-savings rates in the UK, and to see how Tandem compares, see our Best Buy tables.

Fixed Account Term	Maximum deposit	Interest rate (AER*)
1 year	£2,500,000	4.25%
18 months	£2,500,000	3.85%
2 years	£2,500,000	3.85%
3 years	£2,500,000	3.85%
5 years	£2,500,000	3.90%

 

Tandem 'fixed savers' account features:

• Your money is protected up to £85,000 with FSCS
• Fixed interest rates in accounts for 1,1.5, 2,3 and 5 years
• No withdrawals for the fixed-term
• You only have 14 days to deposit money into the account
• Interest paid annually

Tandem eligibility to apply:

• 18+
• A UK resident with a UK current address
• Have a UK current account

Alternatives to Tandem

In the below comparison table, we highlight the key differences between Tandem and some of its competitors. More information about the apps can be found in our reviews:

• Monzo Review
• Starling Bank review
• Chip review
• Plum review

	Tandem	Monzo	Starling Bank*	Chip*	Plum*
Automatic Saving	YES	NO	NO	YES	YES
Roundups	NO	YES	YES	NO	YES
Current bank account	NO	YES	YES	NO	NO
Savings Account	YES	YES^	YES	YES	YES
Investing account	NO	YES	NO	YES	YES
Loans	YES (via Allium)	YES	NO	NO	NO
Overdraft	NO	YES	YES	NO	NO
FSCS protection	YES	YES	YES	NO^	NO^

^Monzo does not offer its own savings account but there are options to save with partner banks through the app. Some of Chip and Plum's savings accounts offer FSCS protection as they are offered via partner banks. 

Is Tandem safe to use?

Tandem is a registered bank which means that your money is protected up to £85,000 with the Financial Services Compensation Scheme (FSCS). This limit applies to all money you may have with Tandem across different accounts, therefore if your savings exceed the value of £85,000, anything over the threshold will not be protected.

Tandem also advises that your bank details are safe with them as they use encryption software to keep your personal information safe.

Tandem Bank customer reviews

Tandem Bank has a score of 4.2 out of 5.0 stars on Trustpilot from over 4,000 reviews. 65% of users rate the bank as 'Excellent' citing 'great service' and a 'good company ethos'. Some customers also comment on the ease of making changes to personal account details such as a change of address or telephone number.

17% of users rate Tandem as 'Bad' with users claiming 'bad support'. Some users also express dissatisfaction with the bank relating to lost transactions and problems with ID verification. Some customers have also recently commented on their accounts being locked due to Tandem being unable to contact them to review the account.

Pros and cons of Tandem Bank

Below, we outline the pros and cons of opening an account with Tandem Bank.

Pros of Tandem Bank

• Free
• Easy to set up
• Committed to green banking and helping customers reduce their carbon footprint
• Competitive savings rates
• FSCS protected
• Chat to customer services 9am-5pm Mon - Fri

Cons of Tandem Bank

• The only way to access it is via an app on your mobile
• Limited banking features
• Does not offer a current account

Summary

Tandem's savings accounts offer competitive rates (although not market-leading) and your money is protected up to £85,000 by the Financial Services Compensation Scheme. Its auto-save feature may be limited in its functionality, but it does allow for regular saving which could appeal to some. In addition to this, Tandem's commitment to green products may appeal to savers looking for sustainable alternatives.

Tandem will no doubt be a good fit for some and particularly those looking to earn a good rate of interest on their savings but for now, there is a little way to go to rival other app-only banks and savings apps such as Starling Bank, Monzo, Chip and Plum.

If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product. The following link can be used if you do not wish to help Money to the Masses - Starling Bank, Chip, Plum.