Savings app Spring has launched the Accelerate Saver, a new savings account designed to help people get onto the savings ladder. Available from August 13 to new and existing customers through the Spring app, the Accelerate Saver pays 5% AER variable and can be opened with a minimum deposit of £10. Customers can save up to £5,000 in the account.
Billions sitting idle
The launch comes as analysis of CACI data by Spring shows that £322 billion is currently held in current accounts paying no interest. Of this, £60 billion is sitting in 68 million accounts containing balances of up to £5,000.
Across all current accounts paying no interest, the average balance stands at £4,008, suggesting that many people could be missing an opportunity to move some of their spare money into a savings account and earn interest. A saver depositing £5,000 into Spring’s Accelerate Saver could earn up to £250 in interest over 12 months at 5% AER variable.
Easy transfers via Open Banking
The Accelerate Saver aims to make it easier for people to move spare money out of their current account and begin building a dedicated financial safety net, Spring said. Using Open Banking technology, Spring connects to a customer’s existing current account, enabling transfers between the two without requiring them to switch banks.
Derek Sprawling, head of money at Spring, said: “The Accelerate Saver has been designed to encourage people with money sitting in a current account earning little or no interest to reconsider their options. Too much money is still sitting idle in current accounts, with average balances exceeding £4,000. By moving even a portion of those funds into a dedicated savings account, people can take a simple step towards making their money work harder.
“We want to help more people get started with saving and build positive financial habits. For those who have yet to take the first step onto the savings ladder, products like the Accelerate Saver can provide an easy way to begin earning a better return on their money.
“Spring connects seamlessly to a customer’s existing current account, making it easy to move money between the two and removing the need to switch current accounts to benefit from competitive rates. The Accelerate Saver gives people a straightforward way to separate their savings from their everyday spending, earn interest and build a fund.”
Expert backing
Andrew Hagger, personal finance expert at MoneyComms, said: “Taking the first step on your savings journey is often the hardest thing to do – once you're up and running, then adopting the savings habit almost becomes second nature. A 5% interest rate is a great incentive and will encourage people to start putting money aside, even if it is relatively small sums initially.
“The Spring Accelerate Saver makes it simple to switch money to and from your existing bank account, it also lets you see how much interest you've earned during the current month – something that will encourage you to keep saving and growing your first nest egg.”
Spring is available to download on iOS and Android through the Apple App Store and Google Play. Customers can apply for an account through the app.
