Latest news with #TandemBank
Telegraph
08-05-2025
- Business
- Telegraph
Buy a one-year bond today or you'll lose thousands, experts warn
Savers have been urged to lock in the best deals or risk missing out on thousands after rates start falling. The Bank of England is expected to cut interest rates from 4.5pc to 4.25pc on Thursday amid growing concerns about the economic impact of Donald Trump's tariff announcements. This could be followed by up to three more rate cuts in 2025, economists predict, with some expecting the Bank Rate to fall to 3.5pc by early next year. However, this means savers may be running out of time to secure the top deals. Anna Bowes, of financial advice firm The Private Office, said: 'If you've been thinking about locking away some of your savings, now might be a good time to act – before rates fall further.' Some fixed-rate accounts have already dropped in anticipation of a rate cut. The average rate on a one-year bond has fallen from 4.19pc to 4.12pc month-on-month, according to financial data provider Moneyfacts. Fixed-rate savings accounts let you lock in a certain rate for a specific period – generally the longer you lock your money away, the higher the rate. Sarah Coles, of stockbroker Hargreaves Lansdown, said: 'You'll need to pick the right length of fix for your circumstances – or a combination of a few of them – but if rates continue to come down as expected, these deals will look increasingly attractive.' Tandem Bank, GB Bank and Cynergy Bank are currently offering the highest rate on a one-year deal at 4.55pc. A saver holding £85,000 in a one-year fixed rate bond paying 4.55pc would earn £3,949 in interest. By comparison, a bond paying just 3pc would earn them only £2,585 – a difference of £1,364. The top rate on a two-year bond is slightly lower at 4.48pc with JN Bank. Savers are generally advised not to hold more than £85,000 with any one financial provider. This is because £85,000 is the maximum they can claim under the Financial Services Compensation Scheme if the firm goes under. Savings rates have been coming down ever since the Bank of England started cutting rates last year as inflation cooled. Caitlyn Eastell, of Moneyfacts, said: 'In the past year, many of the top rates have tumbled, savers coming out of a one-year bond could now be £53 worse off in real cash terms.' Banks are usually quick to pass on rate reductions to savers, with over 40 providers slashing the rates on their accounts in the week after the last rate cut in February. On the bright side, a rate cut should bring some relief to mortgage borrowers. Lenders have already started slowly lowering rates which means some homeowners may see a reduction in their monthly payments when they come to remortgage.
The Independent
23-04-2025
- Business
- The Independent
UK's ‘green' digital bank makes first profit as challengers boom
A green-focused digital bank has said a wave of consumers buying heat pumps and solar panels and switching to electric cars has helped it make its first yearly profit. Tandem Bank, which launched in 2014, is among the UK challenger banks to see earnings rocket over the past year. The Blackpool-based group said it wants to make it easier for people to live a 'greener lifestyle' at a time when costs are rising and environmental rules are becoming more complex. It reported an annual pre-tax profit of £4.4 million in 2024, having previously been operating at a loss. On an underlying basis, which strips out what it views as one-off costs, profits surged 40% to £24.1 million compared with the previous year. 'Green' lending rose 9% year-on-year to total £572 million, representing more than a third of its total loans, Tandem revealed. This incorporates all the bank's lending products targeted at borrowers who are transitioning to a lower-carbon lifestyle, such as installing heat pumps, solar panels and energy-efficient windows or boilers in their homes. It also offers a mortgage with an interest rate discount to people whose homes are more energy efficient. New motor finance lending hit £160 million, with 80% of cars financed meeting emission standards for cities across the UK, Tandem said. Alex Mollart, Tandem's chief executive, said the bank's 'mission is to make it easier for people to choose a greener lifestyle', particularly as 'products and services get more expensive, environmental rules and regulations get more complex, and banks offer increasingly limited services on old tech'. The latest results from Tandem reflect a wave of growing challenger banks that have muscled into the market with new products, technology and customer service that appeals to digitally savvy consumers and businesses. Zopa Bank, in newly released annual accounts, reported its second full year of profitability. The digital bank, which was founded in 2020, revealed its pre-tax profit doubled to £34.2 million in 2024, from £16.8 million the previous year. It now has about 1.4 million customers and saw savings and lending grow during the year, with the group offering products including loans, credit cards and car finance. Zopa last year partnered with John Lewis to offer loans of up to £35,000 for spending like home upgrades, a new car, holidays, or big events such as a wedding. Meanwhile, Allica Bank, which has been dubbed one of Britain's fastest-growing fintechs, revealed earlier this month that it had almost doubled its yearly profit. The bank, which focuses on lending to established small and medium businesses, reported a pre-tax profit of about £30 million for 2024. Allica's chief executive Richard Davies said the pace of growth was 'testament to the frustration that our customers feel with the status quo'.
