Brief Look at Atom bank
Atom Bank was registered in 2013 and since then has been conducting regulated activities under the supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), which are the most reputable British financial commissions. It is a 100% online digital bank; thus, it provides services online through its proprietary application and does not have physical branches with cash desks and employees. Atom Bank is focused on investment solutions through savings accounts, as well as lending services for individuals, and small and medium businesses. All client deposits are protected at the state level, as this bank is a member of the Financial Services Compensation Scheme (FSCS). A huge number of Britons speak positively about Atom Bank. For example, its rating on Trustpilot is 4.8 out of 5 based on over 10,000 reviews.
- Protection of funds by the British FSCS;
- Possibility of investing in savings accounts not only with fixed terms and fees but also with flexible conditions;
- Mobile app that meets modern data security requirements and works on Android and iOS-based smartphones;
- This bank offers refinancing of mortgage and business loans;
- There are no requirements for the minimum investment in savings accounts;
- Support is available 7 days a week by phone, email, in the app, and in popular instant messengers.
- Limited range of services for both individuals and corporate clients;
- To use all Atom Bank’s products, it is necessary to have a current account with another bank since it is used to manage funds;
- This bank's services can only be used by UK tax residents who live within the United Kingdom since the app does not work abroad.
TU Expert Verdict
Chief Analytics Officer
Atom Bank offers individual and business accounts fully accessible through its proprietary mobile application, with services focused on savings products and lending. The bank is regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and client deposits are covered by the Financial Services Compensation Scheme up to GBP 85,000. Savings accounts feature competitive rates, such as 3.2% for the Instant Saver and up to 5.1% for Fixed Saver, with no minimum deposit required and no account opening or service fees. Borrowers can access mortgage and business loans with deferred payment options, and customer support is available seven days a week through multiple channels.
However, a notable drawback is that Atom Bank’s services are available exclusively to UK tax residents, as the app and all transactions are only supported within the United Kingdom. Additional disadvantages include the requirement to use an external current account to manage funds and a limited overall product selection, particularly for business clients. Atom Bank may not be suitable for non-residents or those seeking a broader suite of business banking services, but it can match the needs of UK-based individuals and small firms seeking straightforward savings and loan solutions.
Atom bank Summary
| 💼 Main types of accounts: | Individual and Business |
|---|---|
| 💱 Multi-currency account: | No |
| 💵 Deposit terms and conditions: | The annual rate for Instant Saver is 3.2%, and for Fixed Saver it is 4.5-5.1% |
| 💳 Loan terms and conditions: |
Starting rate for mortgages is 5.19%-5.89% + 900 GBP or 5.29%-6.39% + 0 GBP; Individualized conditions for business loans. |
| ☂ Deposit insurance: | Up to £85,000 per client |
| 👛️ Savings options: | No |
| 📋 Types of payment: | Transfers from current accounts with any bank in the UK |
| ➕ Additional features: | Deferral of payments on mortgage loans, and withdrawal of funds from Instant Saver is available at any time |
The Atom Bank app works on iOS- and Android-based smartphones, and supports the latest and two previous versions of the operating system. However, it is not compatible with all tablets, especially older models. The app can only be downloaded and used by tax residents of the UK, so all transactions and payments are made in GBP.
Atom bank Commissions & Fees
This bank does not withhold fees for opening any type of user account. There are also no service fees. Atom Bank profits from providing loans, from interest on depositing funds with the Bank of England and promoting loan brokers through its app.
Business loan fees vary, as this bank applies variable rates for different areas and depending on the location of its clients. Thus, rates for residents of Ireland are different from rates for residents of Great Britain.
Business clients can choose the loan type suitable for them. If a loan is issued with a floating interest rate, its value depends on the base rate of the Bank of England, as well as the margin for a certain period of time. If a client chooses a loan with a fixed rate, it will not change over the next 2-6 years. Fees for early repayment of loans with a fixed interest rate are 2%-7% of the amount subject to the period until the end of the program.
Atom Bank does not charge fees for opening savings accounts and withdrawing money from them. Its clients pay only income tax, since Atom Bank’s accounts are not investment accounts with tax benefits.
Starting rates for mortgages range from 5.29% to 6.39% for plans with no product fees, and from 5.19% to 5.89% for plans with a £900 subscription fee. For mortgages, Atom Bank offers deferred payments; however, interest will still be accrued, as without enabling this option.
There are no fees for other services, including the use of its app. The company can afford this pricing model due to the absence of costs for running physical branches. Digitalization minimizes the costs of this bank, and hence its clients.
| Broker | Overdraft fee | ATM Withdrawal Fee | International transfer fee | International exchange fee |
| Atom bank | 5.19% - 6.39% | 5.29% - 6.39% | Individually | Individually |
| Chime Bank | No | No | No | 3% (max.$5) |
| Revolut | No | Up to $350 - free - beyond $350 - 2% | 0.3% (min. $0.30, max. $6) | From 0% to 1% |
Account Types
When registering, clients select one of the available user account types, namely Individual and Business. There are two options available for individuals: investing in savings accounts with various conditions and obtaining a mortgage, including refinancing a loan opened with another bank.
There is no minimum deposit for savings accounts, thus you can start with any amount acceptable to you. However, the maximum is £100,000. Mortgage registration is carried out through brokers who are partners of Atom Bank. The website offers a convenient tool for searching for a broker in certain regions of the country. When clicking the company’s name, you will see the loan conditions and telephone numbers for communication.
With a business account, you can get loans for professional activities, including refinancing bad debts on terms that are more favorable than those of Atom Bank.
This bank does not provide other business services. For example, you cannot open accounts for employee payments or use the app for mutual settlements with payment counterparties and suppliers of goods. In this regard, Atom Bank is inferior to more universal online banking systems, but it is already working on expanding its services for small and medium businesses. This bank plans to integrate with eCommerce and accounting software and to provide large loans, including those unsecured with real estate or production facilities.
Investment Options
By installing the Atom Bank app, its client can open one of the savings accounts and earn additional income in the form of a fixed or floating rate. This bank offers two types of savings accounts, namely Instant Saver and Fixed Saver.
Instant Saver has a 3.2% AER (annual equivalent rate) that provides for depositing up to £100,000. Yet, the depositor can deposit or withdraw money at any time. The interest rate is variable; therefore, it can change from time to time, which is reported by this bank at least 14 days in advance.
Fixed Saver is a savings account with a fixed deposit term (from 6 months to 5 years) and AER ranging from 4.5% to 5.1%. The profit percentage is not affected by the deposited amount, but by the time the funds are held in the account.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of the deal and all the steps from signing up to withdrawal of profits.
Overdrafts, loans, and flex accounts
Atom Bank’s savings accounts are not ISA, therefore clients' profits are taxed. To fund a savings account with Atom Bank, use a current account with another bank. Money transactions between different banks lead to additional fees.
Interest rates and fees under RLS (Recovery Loan Scheme) for businesses vary depending on the loan offer. The minimum mortgage rate for individuals is 5.19% and the maximum is 6.39%.
Contacts
| Foundation date | 2014 |
|---|
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Atom Bank has no physical branches and is a digital bank whose services are available only in a special application. However, this bank conducts fully licensed activities. The regulators are the Prudential Supervisory Authority and the Financial Conduct Authority. Also, all Atom Bank products are covered by the Financial Services Compensation Scheme, so each client's savings are protected up to £85,000.
Atom Bank by the numbers:
2 regulators monitor this bank’s activities;
Maximum deposit for savings accounts is £100,000;
Maximum loan amount for business clients is £2,000,000;
Minimum deposit requirements for all savings accounts is £0;
100,000+ app downloads in the Android store.
Atom Bank is not a universal digital bank, as it offers a limited range of services, such as lending and accounts for capital growth. Popular products provided by other banks, including smartphone banks, are not available to its clients. Here you cannot be issued a plastic or virtual card, make payments, or convert currencies. In fact, the Atom Bank app is a tool for accumulating funds and working with loans.
Features of Atom Bank’s business account:
RLS. These loans are provided to small and medium businesses, including for repayment of previously opened loans. The amount varies from £250,000 to £2 million, depending on the business segment;
Secured loans. Atom Bank offers loans with floating and fixed interest rates for individual entrepreneurs, as well as for LTDs and LLPs with a small trading volume;
Savings accounts. Business owners can use programs to increase capital as well as individuals;
12/7 support. A client with a business account can request assistance from the Atom Bank specialist from 8:00 to 20:00 on any day of the week. Support is available both online and by phone.
Advantages:
Convenient management of open savings accounts with 24/7 access to funds, statements, and information;
Quick transfer of income to the account opened with any bank in the UK, including zero fee transfers;
Protection of all investments up to £85,000 under FSCS;
FCA license and PRA regulation;
Credit lines are available for small and medium businesses registered in the UK;
Savings accounts with fixed and flexible terms with an opportunity to deposit £1 or more;
No restrictions on the amount and the number of withdrawals for Instant Saver.
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