A NEW British bank has launched today with a pledge that existing customers will never be paid less interest than new joiners.
Trading under the name thisbank, the new online challenger has entered the market, offering a fixed interest rate of 3.99% across terms ranging from one to five years.
The bank is also offering an easy access savings account with a variable rate of 3.76%, positioning itself as a challenger to established high street lenders.
The savings accounts are open for deposits from as little as £1.
While thisbank’s rates are not market-leading and some rivals offer higher returns – including Chase, which currently offers 4.5% interest – these top-tier deals are frequently boosted by short-term bonuses or reserved exclusively for new customers.
But thisbank has committed to a pricing model where loyal customers will never be offered a lower rate than new applicants.
This targets the so-called “loyalty penalty” often seen on the high street, where long-term customers remain on lower legacy rates while better deals are used solely to attract new business.
The bank, which has been created by revitalising the UK arm of JN Bank, is backed by US and UK investors and reports that its assets have grown twelvefold in the last year.
Management confirmed that deposits are currently rising by more than £100million a month as the lender moves towards a £1billion balance sheet.
Chris Waring, boss of thisbank, said the bank has been designed to grow steadily while giving customers fair value.
Waring has previously held senior roles at Lloyds and Barclays and been linked to the success of Tandem and 118 118 Money.
As well as its savings accounts, thisbank is promising a more personal service.
Customers will be able to speak to a real person when they need help, rather than being pushed to deal with everything online.
Chris said: “While we are technology forward, our approach will always be customer-first.
“Our goal is to deliver sustainable value and a service that feels human, not transactional.”
Declan Halton-Woodward, chief transformation officer, said the bank is built around the philosophy that “humans are complex” and require a service that reflects that reality.
The bank said it will generate returns by investing in specialist assets and portfolios where it can compete effectively against mainstream lenders.
How to find the best savings rates
WITH your current savings rates in mind, don’t waste time looking at individual banking sites to compare rates – it’ll take you an eternity.
Research price comparison websites such as MoneyFactsCompare.co.uk and MoneySupermarket.
These will help you save you time and show you the best rates available.
They also let you tailor your searches to an account type that suits you.
As a benchmark, you’ll want to consider any account that currently pays more interest than the current level of inflation – 3.4%.
It’s always wise to have some money stashed inside an easy-access savings account to ensure you have quick access to cash to deal with any emergencies like a boiler repair, for example.
If you’re saving for a long-term goal, then consider locking some of your savings inside a fixed bond, as these usually come with the highest savings rates.
