Paragon Bank has introduced a new savings application named Spring, developed in collaboration with Moneyhub.
This app aims to enhance the savings experience for consumers in the UK by addressing the prevalent issue of “current account coasting,” where approximately 29 million adults maintain funds in low or no-interest accounts, according to Paragon Bank.
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Spring offers a competitive interest rate of 4.30% AER, which is said to be higher than the rates typically provided by major banks, and does not require users to change their current account provider.
The application integrates with users’ existing current accounts through Moneyhub’s Open Banking technology, allowing customers to manage their finances more effectively.
Users can view their current account balances within the Spring app and transfer funds seamlessly between accounts. The app also includes features such as savings pots and unlimited withdrawals, all without any hidden fees or restrictions.
Paragon Digital Proposition head Guy Simmonds said: “The journeys are superb in their simplicity, and we believe they are best in class, particularly with the app-to-app redirects.
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By GlobalData“This partnership with Moneyhub is a key element of our digitalisation strategy, and we are excited to see how it will catalyse further change across our organisation.”
Moneyhub plays a crucial role in this initiative by supplying the necessary connectivity and payment technology.
This partnership facilitates a secure user experience, encouraging deposits through Open Banking payments, including Single Immediate Payments and Variable Recurring Payments (VRPs) to automate savings.
Moneyhub CCO Dan Scholey said: “We are delighted to partner with Paragon Bank to support the launch of Spring. Our collaboration showcases the importance of breaking down barriers to enable consumers to connect with their money effortlessly.
“This is just the beginning of our journey together, and we look forward to exploring more innovative solutions that deliver outstanding outcomes for customers.”
In 2023, Standard Life teamed up with Moneyhub to create a pensions dashboard for its four million customers, allowing them to access both known and forgotten State, Workplace, and Personal Pensions.
