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 review, we will focus on Atom bank services, features and costs.
Contents
- 1 Atom Banking Benefits
- 2 Disadvantages of Atom bank:
- 3 How Atom Bank Works
- 4 Atom Bank Mortgages
- 5 Atom Bank Saving Account
- 6 Atom Bank Interest Rates
- 7 Atom Business Loan
- 8 Atom Bank Customers
- 9 Atom Customer Service
- 10 Is Atom Bank Safe to Use? Is Atom Bank Legit?
- 11 Atom Bank Reviews
- 12 Is Atom Bank Any Good?
- 13 Atom Bank Alternatives
- 14 More Information
Atom Banking Benefits
Here are some of the benefits of Atom bank:
- 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.
- There are no charges for opening the account or for withdrawing your money.
- 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.
Disadvantages of Atom bank:
Here are some of the cons of Atom Bank:
- Atom does not offer multi-currency accounts.
- There’s no overdraft facility is available.
- There is no current account option.
- No card is provided since the accounts are not intended for transactions or bills.
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.
You need to connect a UK current account to your Atom savings account to transfer money in and out. The current account must be in your name and registered to your address.
- 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?
To open an Atom bank account, you must be a UK resident and at least 18 years old. The account opening process is entirely digital, and there is no need for paper documents. Using the Atom bank app, you can electronically verify your identity by providing basic personal details such as your full name, date of birth, and address.
To complete the identification and verification process, the bank conducts an identity search with a credit reference agency. If you apply for a savings product, it will result in a ‘soft footprint’ on your credit file, which does not impact your credit history. However, if you apply for a mortgage, it will leave a ‘credit footprint’ visible to other providers.
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
Is there Atom bank ISA? Atom Bank does not offer an Individual Savings Account (ISA). ISAs offer tax-free interest, while Atom Bank’s savings plans like the Instant Saver may be subject to tax. ISAs also have an annual contribution limit.
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
Here are the current interest rates for Atom Bank savings accounts:
| Account | Interest rate | Term |
|---|---|---|
| Instant Saver | 3.20% AER/3.15% Gross | Variable |
| 6 Month Fixed Saver | 4.45% AER/4.50% Gross | 6 months |
| 9 Month Fixed Saver | 4.82% AER/4.85% Gross | 9 months |
| 1 Year Fixed Saver | 5.10% AER/5.10% Gross | 1 year |
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 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? Is Atom Bank Legit?
Yes. If you are wondering how safe is Atom Bank, you should not worry about what will happen to your money. Atom bank is FSCS protected. This means your money is covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 if the bank became insolvent. Also, Atom bank has some security features to secure your money, which include encryption, face and voice recognition, secure login protocols, and ongoing monitoring to detect and prevent fraudulent activities.
Atom Bank is a legitimate and authorized bank in the United Kingdom. It is regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
Atom Bank Reviews
At the time of writing this article, Atom app had 82% of positive reviews on Trustpilot from over 10,000 users. Despite receiving a rating of 4.8/5, 3% of users thought the service was bad. Their complaints pointed out Atom baank problems, including 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 4.6 out of 5, and 3.78 out of 5 for the Digital Mortgages.
Is Atom Bank Any Good?
Atom Bank is a good option for people who are looking for a digital-only bank with high-interest rates and good customer service. However, it is important to weigh the pros and cons before making a decision.
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:
More Information
What is Atom Bank?
Atom Bank is a UK-based digital-only bank that started operations in 2016. Founded by Anthony Thomson, a co-founder of Metro Bank, and Mark Mullen, former CEO of First Direct, Atom Bank received its banking license in 2015 and has been serving customers digitally since its public launch in April 2016.
Atom is under what bank?
Atom Bank operates as an independent, standalone bank and is regulated by the Financial Conduct Authority (FCA) in the UK. Despite being a standalone entity, it has significant shareholders, including the Spanish bank BBVA.
How safe is Atom bank? Is it legit?
Atom Bank is a safe bank. It is authorized by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority. Your money is covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 if the bank became insolvent. In addition, it uses encryption, face and voice recognition, secure login protocols, and ongoing monitoring to detect and prevent fraudulent activities.
Is Atom bank FSCS protected?
Yes, Atom Bank is protected by the Financial Services Compensation Scheme (FSCS). The FSCS protects customers' eligible deposits up to £85,000 in the event that the bank fails.
Is Atom bank safe for savings?
Yes, Atom Bank is safe for savings. It is regulated by the Financial Conduct Authority (FCA) in the United Kingdom, which means that it is subject to strict financial regulations. Your savings are protected by the Financial Services Compensation Scheme (FSCS).
What is Atom bank problems?
Atom Bank has faced challenges in its strategy of offering competitive rates, leading to increased losses. Technical issues, customer service problems, and a limited product range have also impacted its operations. Additionally, Brexit hindered the hiring of foreign specialists, affecting its growth.
Where is Atom bank based?
Atom Bank is based 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 via the app.
Is Atom a current account?
Unlike many other digital banks, Atom bank does not offer current accounts. It only offers savings accounts. To get started, however, you need to provide bank details of an existing UK current account in your name.
