cashback on everyday spending for the first year, together with free card use abroad and a 5 per cent interest on limited savings is expect to attract a large portion of current account holders in the European nation. Accordingly, the bank said it is taking a restrained approach to manage the demand by inviting prospective customers to register on a waiting list. They will be able to become an account holder within days, the bank added.
The services are being offered in the United Kingdom only via the banking app, competing with firms like Starling and Monzo. While digital-only banking services gained ground over the recent month, particularly amidst the COVID-19 pandemic, While this is some experts point out that there are a few drawbacks linked to this approach, including the fact that customers would be required to obtain support online or on the phone, owing to the lack of bank branches.
One of the unusual features of the account is that it comes with a numberless debit card, with the details stored in a secure login on the app. The advantage of this is that in an instance where a card is reported lost, a new card number can be generated immediately.
“First impressions are that this new account will blow the competition out of the water, with an attractive cashback deal and a market-beating interest rate on its savings feature,” the head of personal finance at AJ Bell, Laura Suter, said. “Assuming the cashback is uncapped, the rate means that if someone spends £500 a month on their debit card they’ll get £5 back.”
