Unlocking better value for customers, the Spring app is launched today offering a new easy access savings account, connecting directly with current accounts in seconds and bringing significantly better returns.
With an estimated £20 billion1 in lost interest every year from £526 billion sat idle in current and savings accounts earning next to nothing, Spring is designed to transform the UK’s relationship with saving, offering a competitive rate that delivers savers a significant upgrade from traditional high street banks.
Spring believes that saving shouldn’t just be about tomorrow’s security, it should enable today’s experiences. For example, saving £10,000 in Spring at 4.30% AER would accrue £430 interest over 12 months versus only £125 in an account paying 1.25%. Spring emphasises effortless money management alongside competitive growth, designed to help customers upgrade their everyday experiences.
A helpful savings companion
Built using Open Banking technology, Spring connects to a customer’s existing current account in seconds. It provides a genuine easy access savings account, enabling seamless transfers between accounts, while allowing customers to withdraw money when they need it. Spring puts users in full control of their savings, offers features such as savings pots, all without the need to switch banks. It serves as a helpful savings companion, building better savings habits and making money work harder.
With Spring by their side, savers can earn a competitive rate of interest of 4.30% AER, without the restrictions so often found with other savings products.
Spring is brought to the market by Paragon Bank, the award-winning FTSE 250 bank that already looks after £16 billion of customers’ savings. Paragon is rated excellent on Trustpilot with a score of 4.7 from 9,000 reviews, and has a proud 40-year history of funding British businesses - putting its savers’ money to work hard supporting the UK’s economy.
Current account coasting
Research from Spring highlights over 29 million people are “current account coasters” and ‘could’ move their money, after bills and essentials at the end of each month, into a higher interest savings account, but choose not to3.
The apathy that is driving current account coasting is led by traditional high street banks providing consumers with a raw deal. Many people leave their surplus cash in a savings account with their high street bank, but these have some of the poorest rates available.
Analysis of high-street banks’ easy access savings accounts reveals that more than three quarters have restrictions such as bonus rates, stepped rates or withdrawal limits. The average interest rate offered on pure easy access accounts by the big five high street banks stands at only 1.25%4.
Derek Sprawling, Spring’s Managing Director of Savings, said:
“With over £520 billion languishing in low-paying accounts, Spring offers a compelling alternative to saving with high street banks or just leaving your money in your current account. Spring connects directly to your current account in seconds, working alongside it to deliver significantly better returns through a simple and easy-to-use app.
“Unlike most high street easy access savings accounts, there are no hidden surprises with Spring — no bonus rates, restrictions or fees. You don’t need to move your current account; just enjoy a competitive rate, unlimited withdrawals and easy access to your money whenever you need it. Utilising leading technology, you can transfer money in seconds and start to benefit from a better rate.”
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, commented on the launch of Spring:
“Savers looking for complete flexibility with their cash will find the new account from Spring enticing. Its simplicity shines and could be a great choice for savers who want to make unlimited withdrawals and manage their pots on the go. At a time when lots of the top rate deals on the market have upfront bonuses or limit withdrawals, it’s refreshing to have a fuss-free savings account launched onto the market.
“There are unfortunately some savers keeping their hard-earned cash in a current or savings account that pays poor returns and is eaten away by inflation. However, this money could work so much harder if consumers just take a little time out of their day to open an easy access account that pays better returns, which is quick and easy to do.”
Download Spring today
Spring is available to download on both iOS and Android through the Apple App Store and in Google Play, customers can access 24/7 support via the app and UK-based customer service team.