What is Atom bank? Atom Bank is a digital bank that offers services through an app. Some of Atom bank’s features include fixed saver accounts, mortgages and business loans. However, Atom Bank does not offer current accounts. Since it has no branches, its overheads are low translating to cheap service costs. It is the first UK’s virtual bank to be granted a banking license. In this Atom bank reviews, we will focus on Atom bank services, features and costs.
Atom Banking Review
- Atom Bank is an online bank that operates through an app. Account opening doesn’t involve any paperwork. It is the first UK virtual bank to be granted a banking license.
- Atom bank’s features and products include instant and fixed savings accounts, UK business loans and UK mortgages. However, the bank does not offer Atom current accounts.
- Atom bank is one of the mortgage lenders for bad credit in the UK through its Near Prime Mortgages product.
Where is Atom Bank Based? The British challenger bank’s headquarters are in Durham, United Kingdom. The bank also has a small office in London. However, the bank has no physical branches since it provides all of its services from the app.
How Atom Bank Works
Atom Bank is an online bank and all its services are accessible through an app. Unlike many other digital banks, Atom bank does not send you a card. It allows you to move your money through bank transfers. You can personalize your Atom bank account through the Atom bank app by changing your account name and app theme. You will also enjoy the following features through the Atom bank app.
- Atom bank products. It offers a small pool of different savings accounts, business loans and mortgages at competitive rates. You can apply for one of these options.
- Atom bank savings. Here, you can see how much money you have saved and how much money you will earn through Atom bank interest rates. The interest rate will be displayed on the screen.
- Atom bank mortgages. Once you choose a mortgage plan with Atom, an option to view your repayments becomes available on your screen. It shows how much and when you need to repay your loan.
How Do I open an Atom Bank Account?
You need to be a UK resident of at least 18 years old to open your account. To open Atom bank account you don’t need any paper documents. The bank will verify your identity electronically through the Atom bank app. You need to provide basic personal details such as full name, date of birth and address.
To complete the identification and verification (‘ID&V’) process, we’ll run an identity search with a credit reference agency. If you apply for a savings product, this will leave a ‘soft footprint’ on your credit file, so won’t affect your credit history. If you apply for a mortgage, it’ll leave a ‘credit footprint’ on your file which means other providers will be able to see that we’ve run a search.
How to Withdraw and Add Money to Atom Bank Account
The only method to use to add and withdraw money from your Atom bank account is through the Atom bank app and your connected UK current account. When adding money to Atom bank account, your money will usually reflect in your account as soon as your other bank sends the money to Atom bank.
Atom Bank Mortgages
One of Atom Bank’s products is UK mortgages. It provides a wide variety of mortgages. All Atom bank mortgages have fixed rates, meaning your interest rate will not change over the period. Atom mortgages are available for a period of two or five years.
Atom Bank Mortgage Rates
The average interest rate for Atom Bank mortgage is 2.69% for a 2-year period. The average interest rate in the market is 2.38%. First time buyers and home movers can get 65%, 70%, 75%, 80%, 85%, 90% and 95% loan to value. An applicant can borrow up to 4.5 or 4.75 times of their annual income. A borrower can overpay their Atom bank mortgage by 20% each year in regular payments or a lump sum.
Atom Bank Saving Account
Atom Bank has two savings products; an instant saver account and a fixed saver account.
- Instant saver account. Atom Bank instant saver account comes with a competitive 0.75% AER and customers can make deposits and withdrawals without penalties. You can access the account at any time of the day throughout the week. Your savings are protected by the Financial Services Compensation Scheme (FSCS) for up to £85,000. You can open an account with £0.
Fixed saver account. You can open Atom saving account and enjoy fixed interest rates for your deposits. To open a fixed saver account, you need to be 18 years and above and then be a UK resident. You can apply for a fixed saving account through your mobile app. During this saving period, you will not be allowed to withdraw the savings until the maturity date. You can save for a period between 6 months to 5 years an amount ranging between £50 and £100,000. Atom bank interest rates for fixed account saver are 1.45% for 3 or 5 years.
Atom Business Loan
Atom bank provides UK SMEs with secured loans with a Loan-to-Value (LTV) rate of 75%. You can apply for the loan if your business is a Limited company, Limited Liability Partnership, or sole proprietorship. The loans it offers are mainly for property investment, commercial owner-occupied and semi-commercial borrowers. Atom bank business loans have a Standard Variable rate of 4.7%.
Atom Bank Current Account. Unlike many other digital banks, Atom bank does not offer current accounts. It only offers fixed savings accounts. To get started, however, you need to provide bank details of an existing UK current account in our name.
Atom Bank Customers
To be Atom bank customer, you must be a UK resident. If you are a resident but you are going to live out of the country for more than three years, you will have to close your account. Atom bank was also granted permission to offer retail deposits in Germany via a partnership with Deposit Solutions.
Atom Customer Service
Atom bank app has a 24/7 support team on hand to help with any customer queries. This is done through phone, chat, email, and social media. Atom bank contact number is 0333 399 0050. The team ensures the right products, excellent service, and great value to their customers. Atom bank login is done via face and voice biometrics. Atom bank also uses machine learning technology to guide its customer support team.
Is Atom Bank Safe to Use?
Yes. If you are wondering how safe is Atom Bank, you should not worry about what will happen to your money. Your money is covered by the Financial Services Compensation Scheme (FSCS). This means that you are covered for up to £85,000 if the bank became insolvent.
Also, Atom bank also has some security features to secure your money. It uses face and voice recognition features to secure your money. Any time you want to log in, the Atom bank app will ask for your selfie or voice clip.
Atom Bank Reviews
At the time of writing this article, Atom app had 80% of positive reviews on Trustpilot from over 7,000 users. Despite receiving a rating of 4.7/5, 3% of users thought the service was bad. Their complaints included flawed ID verification process, interest rate increase without notification, and poor customer service. According to the Smart Money People reviews, customers have rated the fixed saver account 2.84 out of 5, and 2.10 out of 5 for the Digital Mortgages.
Pros and Cons of Atom bank
- You can register in under 30 minutes. This saves on time
- Atom bank gives you the privilege to choose how long you want to save
- It offers tight security that will ensure your money is safe
- It displays your account balance and interest rates, and how much you will earn at the end of the saving period
- Atom bank does not have a current account
- The bank does not offer any card
- The security features often take several tries to work
- Atom bank app is clunky. Users have reported cases of crashing
- The bank asks for a lot of information from you
Atom Bank Alternatives
It is possible that Atom bank does not offer products that meet your specific needs. Fortunately, there are many other Atom bank alternatives. Some of them are the following: