5,000 join ‘digital’ bank in just one day

Atom Bank, which operates via smartphone apps only, proves irresistible to savers. Amelia Murray reports

Afast-growing bank that operates only via a smartphone app signed up almost 5,000 new customers in one day earlier this month, Telegraph Money can disclose.

Atom Bank, which promotes itself as Britain’s first digital-only bank, experienced the surge in new customers on March 9, the last day on which savers could sign up to its market-leading one-year bond before the rate was cut from 2pc to 1.8pc.

To put the number of new customers in perspective, 13 of Britain’s 44 building societies have fewer than 20,000 customers.

At one point, the number of savers rushing to put their cash in the bond before the rate was cut caused the Atom Bank app to crash. The bank said it was its busiest day, although it would not disclose the amount of cash deposited.

By comparison, Penrith Building Society has 6,172 customers in total, according to the Building Societies Association’s latest figures. Holmesdale Building Society has 6,239.

Since the rate cut on March 9, Atom Bank has reduced rates further. However, its savings bonds still offer market-leading rates.

The one-year bond now pays 1.6pc, compared with 1.5pc from its nearest rivals. Atom’s two-year account offers a joint market-leading rate of 1.7pc. Its three and five-year bonds pay 1.9pc and 2.25pc respectively, rates that no rival currently beats.

All Atom Bank accounts can be opened with a balance of £50. The app is available on Apple and Android devices.

Coventry Building Society has increased the rate on its easy-access cash Isa to a market-leading 1.05pc.

The account is available to new and existing customers and can be opened with £1 in branches, by telephone or post, or online. Old Isa transfers are permitted. Withdrawals can be made at any time.

The Coventry account just inches ahead of the current market leader, NS&I, which offers 1pc, although this rate is due to fall to 0.75pc on May 1.

Atom Bank’s app is available on Apple and Android smartphones

Michael Heseltine