A new challenger bank has launched a service specifically for pets and their owners. With welcoming interest rates for its loyal customers, we want to know if this will be a new banking revolution.
The UK has long been regarded as a nation of animal lovers. Amazingly, there are 54 million pets in the UK, with 44% of the population owning at least one. And that translates to big money.
In fact, according to latest figures, we Brits shell out as much as £5bn a year on our furry friends. When you add into the mix as much as £1bn per year left to our beloved pets in wills, it would appear that our pets could be pretty high earners – and savers.
This untapped market has led one challenger bank to a bold new idea: pet banking.
New app-based bank ‘Petty Cash’ is offering dog and cat owners increased interest rates on instant-access savings if they jointly open an account with their four-legged friends.
Canny canine and kitty owners could find themselves cashing in on a hefty 9% AER, compared to the 1.21% typically offered by other high street banks.
Petty Cash says it can afford the top rates because of high customer loyalty among dogs and cats.
According to the new bank, dogs aren’t just a man’s best friend, but a bank’s too.
New customers simply register their cat or dog’s microchip with the bank in order to log in to access funds.
Paws for thought
However, with fraud on the rise, the bank has announced plans for added security extras including a biometric paw print login.
Financial adviser and pet owner, Jerry, owner of nine-year-old Tom, a mackerel tabby, told us that he is considering applying for the savings account. Jerry said:
‘The cost of pets can seem like money madness, but it’s worth it. I’m careful with my money, but with the high cost of pet insurance, balancing Tom’s finances can be a burden.
‘For too long, banks have hounded us with ruff interest rates. I’ve been sniffing around for a new account for months and this one seems quite fetching.
‘The interest on this account has tempted me to put some of my own petty cash into the kitty for Tom. It could make a big difference in the long run.’
Petty Cash’s plans have been submitted to the banking watchdog for approval – and could be unleashed onto the market as soon as the autumn. So is this a game changer for you? Do you think a new service like this will make some of the big banks like Barklays hot under the collar?