About Tandem Bank
Tandem Bank is a London-based British bank that is completely owned by Tandem Money. It is mostly concerned with mobile banking. After acquiring Harrods Bank in 2017, it became a full-fledged bank account, allowing it to operate under the same license as Harrods Bank.
Tandem focuses on helping customers manage their money with a variety of services, including a user-friendly app, savings, credit cards, mortgages, and loans. Its customers' money is protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).
Can I use Tandem Bank for international bank transfers?
Yes. Tandem Bank provides an instant bank transfer. It's a brand-new payment system based on open banking. It entails transferring funds directly from one bank account to another without the need of a third-party payment network. It's more convenient than regular bank transfers and safer than credit card payments.
How long do transfers take with Tandem Bank?
With Tandem’s instant bank transfer, your funds are settled in a matter of seconds, and you can do it all from the app.
Are there transfer limits?
There is no mention about transfer limits in Tandem’s website.
Can I use a Tandem Bank debit card when traveling abroad?
Tandem Bank only has a credit card, not a debit card. The Tandem app is a great travel companion because it gives you a breakdown of your budget so you don't have any unpleasant surprises when you arrive home. If you qualify and need some extra cash, Tandem's credit cards (which they'll help you pay back with advice from their app) are designed for travel, with no fees for payments or cash withdrawals while you're abroad.
However, Tandem decided to discontinue its current credit card offering due to the influence of Covid-19 on how people are now spending in the 'new normal,' as well as a strategic choice to invest on updating the fundamental banking infrastructure that powers Tandem's products and services.
Tandem Bank Exchange rates and fees
Since you don't have to switch your current account to Tandem, your current bank will set the rules for spending overseas. It's a good idea to double-check whether you'll have to pay any costs for international transactions before flying.
Exchange rate
Tandem Bank, unfortunately, does not publish its own currency rates. Always request payment in the local currency to get the best conversion rate.
Transfer fees
The Tandem Bank’s website makes no explicit mention of transfer costs. You can't spend or transfer money using the Tandem app, so you'll have to log in to your other banks individually.
Additional costs
Tandem does not provide a full current account, thus its credit card fees and charges are the only fees and costs that apply. The following are the details:
If a credit card payment is not made, a charge of £12 will be levied.
ATM withdrawals are subject to a 2.5 percent fee, with a minimum of £2.50.
Keep in mind that because you'll be using your existing current account, there may be additional fees and charges. Check with your account provider to determine if there are any fees that apply before you start spending.
Tandem Bank used to provide two credit cards, both of which catered to customers in their twenties and thirties, with alternatives for customers with minimal credit histories, a competitive cashback offer, and fee-free purchases and cash withdrawals abroad.
As of September 2020, Tandem Bank discontinued its credit card offerings, focusing on savings and day-to-day banking.
How do Tandem Bank transfer fees compare to using a money transfer provider?
Tandem is a whole different beast than the other money transfer providers, which have all required certain fees and charges. Tandem works with your existing bank account to provide a savings account that operates in "tandem" with your current account, rather than requiring you to open a new one. Hence, it requires no transfer fees.
Tandem Bank pros and cons
Tandem Bank has its own pros and cons:
Pros
Cons
Tandem Bank Additional Products
Tandem also offers credit cards and savings accounts in addition to the app. A Tandem Cashback Credit Card or a Tandem Journey Credit Card are available to customers.
Tandem App– the free companion app will work by pairing itself with your current account and automatically transferring spare change to a new savings account.
Credit Cards– Tandem offer two types of credit card; one for building your credit score and one for earning cashback on your purchases (discontinued due to COVID-19).
Personal Savings - Tandem is dedicated to assisting our community's growth and development. Savings is a vital part of financial growth and stability. It provides the following cost-effective savings solutions:
Savings Account
Earns interest based on daily available balance, paid quarterly
6 withdrawals per quarterly statement cycle
$5 charge for each debit in excess of 6 per quarterly statement cycle
$50 minimum balance to avoid monthly $5 service change
Money Market Account
Tiered interest rate based on daily available balance
6 withdrawals per monthly statement cycle
$5 charge for each debit in excess of 6 per monthly statement cycle
$2,500 average daily available balance to avoid monthly $10 service charge
Certificates of Deposit
Flexible terms from 6 months to 5 years
Competitive rates for a fixed period
Early withdrawal penalties may apply
$5,000 minimum deposit to open
Personal Loans
Construction and Home Improvement - for homeowners seeking to remodel or renovate an existing home or build a new home, Tandem provides construction loans tailored to fit your project. Tandem’s experienced lenders can discuss your project and recommend a structure that makes sense for you. Whether it is a small project or a major addition, we can provide the answers for financing construction and a permanent loan.
Home Equity Line of Credit - If you need to finance home repairs or renovations, college expenses, unexpected expenses, or plan your dream vacation, using the equity in your home could be an alternative to using other higher-interest rate financing options. A home equity line of credit (HELOC) is a great way to pay for expenses as they arise.
Summary
Tandem addresses the core problem that other challenger banks face: consumers who do not use them as their primary account. It recognizes this trend and produces solutions that sit nicely on the side of your current account, rather than fully replacing it, by giving a companion app to assist with savings.
Tandem sees itself as an accessible and beneficial companion to optimize your savings, rather than a challenger, in this sense. Tandem could be a suitable alternative to other challenger banks if you don't want to move banks but yet want to save money.
