There’s a new bank on the block, but is it offering anything worth having?
Atom Bank has become the latest bank to launch in the UK. The new challenger bank said it wants to offer consumers something a little bit different with entirely online, app-based banking and competitive rates.
Atom CEO Mark Mullen (pictured) said it aims to offer a "genuine alternative to the insidious and self-interested banks that dominate the UK banking landscape".
Strong words, but how do their products stack up?
Make sure you get a good deal from your bank - compare current accounts
Decent savings, not much else... yet
Customers will access Atom Bank via its banking app that allows users to log in using face and voice biometrics. Aside from the bells and whistles and fancy apps, Atom Bank also says it is offering competitive rates on its range of fixed-rate savings accounts. But how do they compare?
Atom Bank has launched with four savings accounts, and promises more to come throughout the year.
|
Product |
Atom Bank’s Rate |
Best Competitor Rate |
|
One-Year Fixed Saver (Annual Interest) |
2.00%AER |
2.15% from Union Bank of India |
|
One-Year Fixed Saver (Monthly Interest) |
2.00%AER |
1.91%AER from Charter Savings Bank |
|
Two-Year Fixed Saver (Annual Interest) |
2.20%AER |
2.35% from Union Bank of India |
|
Two-Year Fixed Saver (Monthly Interest) |
2.20% AER |
2.00% from Axis Bank |
As you can see from the table Atom Bank’s products are certainly competitive. If you are looking to draw a monthly income from your savings then Atom’s accounts are definitely worth looking at.
“Typically as a new operator Atom is kicking off with a savings offer as it looks to raise liabilities and to be fair at 2% for a one year fixed rate product, and 2.2% for a two-year fixed product, it looks like the business is prepared to back its digital offering with competitive products,” says Kevin Mountford at price comparison site Moneysupermarket.
The minimum deposit is £50 and to open an account you need to register at www.atombank.co.uk and then download the app.
As well as saving accounts, Atom Bank is now ready to offer secured lending to SME businesses via specialist business intermediaries.
What’s to come?
Sadly, that's about all Atom has to offer for the moment, product wise. The bank has pledged to launch more savings accounts and a current account later this year though.
CEO Mullen added that the bank will "constantly evolve and extend our offering, with monthly updates on our app and a dedication to providing better value, greater transparency and a much more innovative banking experience”.
“There is clearly an aim to boost competition within banking and the launch of Atom Bank is a welcome addition,” says Mountford. “The Atom Bank proposition no doubt reflects the fact that consumer behaviour is changing and for some a slick online or mobile offering makes sense.”
Fed up with low savings rates? Consider a Stocks & Shares ISA
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