"If app-based saving isn't for you..."

refluxer

I've been looking at fixed rate savings accounts now that the interest rates are starting to improve and noticed the phrase "if app-based saving isn't for you" often appears when the app-based banks like Atom or Tandem top the tables.

Is that phrase aimed at people who prefer to stick to the traditional high-street banks and building societies and/or aren't perhaps quite as internet/technology-savvy as others, or is there a disadvantage to a purely app-based account (to those who are internet/technology-savvy) that I maybe haven't considered ?

I'm curious to know what people think are the pros and cons of purely app-based savings accounts ?

solidpro

App-based is an all-encompassing marketing term.

• 'kids' use 'apps'. Older people prefer a branch or a computer and a web browser.
• An 'app' based product is less likely to support calling and speaking for support making them cheaper to operate. They may even only have mostly automated/bot responses via 'instant messaging' support.
• Many new services are 'app based' only and instantly distasteful because of the above reasons.

It just means if you don't understand 'apps' and you expect a more traditional experience then 'how about this...'

Albermarle

• 'kids' use 'apps'. Older people prefer a branch or a computer and a web browser.

Speak for yourself 

I am 'older' and am happy to use apps for various financial products , such as my current account . In fact it is not 'app only' but I prefer the app for dealing with my current account rather than via a computer  .
On the other hand I have apps for my Sipp/pensions, but I only ever use them for a quick check and not for any buying or selling which usually entails some detailed research which is better done with a big screen.

For my cash ISA's , I use smaller less well known banks due to the better rates . They do not offer an app but for a two year fixed rate deal, I have no need ever to check it anyway.

solidpro

Sorry for the generalisation. I'm 42 and I have friends not much older than me that hate apps and want to use a browser. They have friends old than them that hate browsers and want to walk into a bank. But not all of our friends feel that way...

Daliah

solidpro said:

• Many new services are 'app based' only and instantly distasteful because of the above reasons.

Distasteful? I would not associate this term with apps. Clearly, there are numerous people who don't like apps, are fearful of the technology, or don't trust the different processes or procedures. This doesn't make the apps distasteful, or the users of apps lacking taste.

solidpro said:

• 'kids' use 'apps'. Older people prefer a branch or a computer and a web browser.

That's a bit of a generalisation. I think I can be considered an older person at 67. I totally prefer app-based banking, for current accounts, savings and investments. It would be fair to say that more younger than older people like apps but please don't throw me in with those who are anti-apps. For years, I have mainly avoided Branch-only accounts, though I have made exceptions for the KRBS Regular Saver whilst it still paid top whack. Sadly, they no longer do, so I no longer give them my money. My only criterion for app-based banking is FSCS protection.

solidpro said:

It just means if you don't understand 'apps' and you expect a more traditional experience then 'how about this...'

Totally agree.

dunstonh

Generalisations always have exceptions.   However, app based products do tend to be limited in various areas.  Such as short working hours for the support staff or needing to use the app for queries as there is no phone line or branches.   

Most people never need to use the support staff but if you do, that can be frustrating for some.  Especially if the market-leading rate to attract business is more popular than they expected and they are inundated and get behind and there are just 10 people to answer queries via the app.

Another generalisation is that many focus on the quality of the app and not the terms of the savings/investment. i.e. how good the app is trumps how good the product is.

EdSwippet

dunstonh said:

Another generalisation is that many focus on the quality of the app and not the terms of the savings/investment. i.e. how good the app is trumps how good the product is.

⭐⭐⭐⭐⭐ - Excellent choice of colours
⭐⭐⭐⭐⭐ - Easy to install
⭐⭐⭐⭐⭐ - Fast facial recognition login
⭐☆☆☆☆    - Bank stole all my money

Average rating: ⭐⭐⭐⭐☆

:-)

Albermarle

EdSwippet said:

dunstonh said:

Another generalisation is that many focus on the quality of the app and not the terms of the savings/investment. i.e. how good the app is trumps how good the product is.

⭐⭐⭐⭐⭐ - Excellent choice of colours
⭐⭐⭐⭐⭐ - Easy to install
⭐⭐⭐⭐⭐ - Fast facial recognition login
⭐☆☆☆☆    - Bank stole all my money

Average rating: ⭐⭐⭐⭐☆

:-)

At least you would be able to check quickly how much money had been stolen !

solidpro

Apps are cheap because they're highly automated and 'sound like that tiktok thing kidz keep talking about'. Scary for my parents.

Daliah

EdSwippet said:

dunstonh said:

Another generalisation is that many focus on the quality of the app and not the terms of the savings/investment. i.e. how good the app is trumps how good the product is.

⭐⭐⭐⭐⭐ - Excellent choice of colours
⭐⭐⭐⭐⭐ - Easy to install
⭐⭐⭐⭐⭐ - Fast facial recognition login
⭐☆☆☆☆    - Bank stole all my money

Average rating: ⭐⭐⭐⭐☆

:-)

Everybody who puts any money into any savings or investment account would have ascertained that there is FSCS cover, wouldn't they? I don't understand how the 'bank stole all my money' scenario could arise - but perhaps you have examples of banks stealing money, particularly from FSCS protected accounts?

Daliah

dunstonh said:

  

Most people never need to use the support staff but if you do, that can be frustrating for some.  Especially if the market-leading rate to attract business is more popular than they expected and they are inundated and get behind and there are just 10 people to answer queries via the app.

Are there any real-life experiences of people, or is this just a case of mild scaremongering?