The AA plans to launch instant access savings accounts from the end of March, closely followed by personal loans, as part of a partnership with NatWest Boxed. The partnership will enable the AA to expand its range of financial services, with products that could help people save for their first driving lesson or helping with the cost of an emergency repair.
It will also see the AA offer a differentiated product range for its personal breakdown members and insurance customers. Details of the products will be issued when they when they are set to go live. The savings accounts will have the protection of the Financial Services Compensation Scheme (FSCS), which compensates customers when financial institutions go bust.
Savings and personal loans are the first step of a long-term partnership, the AA said. The new financial products it will offer could help people with a car purchase. Previous research for the AA, carried out by Yonder, indicates that one in three UK drivers (33%) are looking to purchase a car in 2025, up from 16% last year.
More than half (54%) of those in the market for a car aim to opt for a “greener” vehicle this year, such as a hybrid or a fully electric vehicle. Jakob Pfaudler, chief executive of the AA said: “We are delighted to announce this financial services partnership with NatWest Boxed as we continue to broaden the range of services we offer our members.”.
Andrew Ellis, chief executive of NatWest Boxed, which is backed by NatWest Group and operates as a separate entity, said: “We are proud to support the ambition the AA has for its customers, using our technology, balance sheet, operational support, and regulatory expertise to drive future growth.”.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk said: “It’s great to see the AA reveal its partnership and that it will be launching both an instant access savings account and an unsecured personal loan.”. She said the AA has offered a “best buy” easy access account in the past and “isn’t a stranger to the personal finance area”.
Ms Springall continued: “More choice in the market is great news overall and there will be loyal members enticed by the new deals once they surface. “However, on the flipside, it’s always wise for consumers to shop around for any deal, whether it be insurance, savings or loans, just to ensure they are getting the best possible deal. The convenience to use one brand is great to save time, but customers need to make sure this does not come at a cost to them.”.
