The field of banking has seen a revolution in recent days, thanks to science and technology. Atom Bank has come up with the latest innovation here – offering banking services regarding fixed rates schemes on its mobile app. Yes, those who are ready to bank with their mobiles and/or tablets would now get an interest of flat 2.03%. In this article, we shall find out more about this scheme.
What is Atom Bank?
Atom bank is one of the recent members in the banking sector, making its entry in 2014 from Durham. It was started as a completely digital bank.
What is this scheme all about?
The scheme offers remote bankers or customers to earn more interest by using the apps. The depositor has to deposit any amount greater than €50. It is basically a one-year fixed rate scheme.
The scheme surpasses similar schemes by Gate House Bank, which offers one-year fixed-rate plans at 2.0 percent. The present rate offered by Atom Bank is 2.03 percent.
Does Atom often offer such deals?
Atom does have a history of offering such savings schemes. In June 2018, it was the first one to come up with a one-year fix scheme offering 2.05 percent interest. And at this time of the year, it is really challenging to come up with good one-year fixed schemes.
Pros and Cons of this scheme
Pros
#1 Highest rate
The present rate is the highest rate offered in the market now. Savings offers are not that great at this time of the year and only Gatehouse and Metro Bank offer this rate as of now.
#2 Less Capital Required
While other banks like Gatehouse require deposits of higher amount (of the order of £10,000), Atom requires a very small capital. The minimum investment here is just £50. This makes availing this feature allows middle-class people also to access the deal and reap the benefit out of it.
#3 Protected Savings
The cash that you deposit in Atom Bank is protected by the Financial Savings Compensation Scheme. So, do not worry about your money.
#4 Flexibility in the Interest payment schedule
You can either opt for a monthly or annual payment of interest as per your convenience. You also can take up to seven days to deposit at least £50 from the day of opening the account.
Cons
- This scheme is good for short-term investment (on a yearly basis). But other similar banks offer better rates of interest for a multi-year plan.
- Users not comfortable banking on their mobile phones will find it to trust and invest in a completely digital bank.
What does it imply?
A similar minute correction was undertaken by the Coventry Building Society, which boosted its early access ISA by a minute 0.02 percentage points and made its way to the first place. This shows that even minute adjustments can have a considerable impact when it comes to banking.
This was all that you had to know about the latest offering by the Atom Bank. Make sure you invest according to your needs. All the Best!!
