The AA has announced plans to launch instant access savings accounts and personal loans by the end of March as part of a new partnership with NatWest Boxed.
This collaboration will allow the AA to expand its range of financial services, offering products that could help customers save for their first driving lesson or cover the costs of emergency repairs.
The partnership will also create a tailored product range for AA’s breakdown members and insurance customers.
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.”
Further details about the products will be shared closer to their launch date. The savings accounts will be protected by the Financial Services Compensation Scheme (FSCS), which safeguards customers if the financial institution fails.
According to the AA, savings and personal loans are the first step in a long-term partnership. The new offerings are expected to help customers with car purchases, with recent research from Yonder showing that one in three UK drivers (33%) are planning to buy a car in 2025, up from 16% last year.
Additionally, over half (54%) of car buyers intend to opt for a “greener” vehicle, such as a hybrid or fully electric model.
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 flip side, 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.”
