Dozens is not a bank. They offer access to savings and current accounts while making them profitable. For only £100, you can earn a 5% return on your savings. Launched in January 2019, over 2,100 Dozens cards have since been issued, with 100 cards a day being sent to the more than 3,000 people on the waiting list.

How Dozens Work

Dozens offer a current account that helps you grow your money, encourage saving and finally invest. It offers several financial services including:

1). Current account – Dozens is yet to have a full banking license, so it’s currently not a full UK account. But, it will have an account number and sort code.

2). Cash savings – This will enable you to set aside money regularly, according to the set rules you decide. You will not earn interest on the savings, but you can transfer them back to your main account anytime.

3). Investment bond product – Already listed on the NEX stock exchange, the bonds will be £100 each and earn a 5% annual interest paid monthly.

4). Investment account – Yet to be launched, Dozens will allow you to invest your money. The minimum buy-in will be £1,000, and same as any investment, there’re risks of losing some or all your money.

5). A card – Dozens is already issuing cards to people on the waiting list. The cards are MasterCard and a bright yellow in color.

6). Great App – There’re four sections to the Dozens app: spend, save, track and invest. Spend is the current account, save is the savings account, track is your budgeting and invest is for stocks and shares investments.

7). Spending report – This feature shows your spending according to location, category, and size.

8). Budgeting service – You can save automatically by setting your own rules. Occasionally, Dozens will encourage you with cash prizes.

The 5% Interest Bonds

This is one of Dozens best features. Such high rates often mean a risky investment but the money you deposit with Dozens isn’t invested anywhere. The bonds are held within stocks and shares which are put into a separate trustee-controlled account. As a result, Dozens cannot touch it, your tax-free returns will not vary and the capital isn’t at risk.

The bonds are not risk-free as Dozens issued the bonds on the NEX stock exchange as a way for raising money. If the worst should happen, the FSCS offers investment protection up to £50,000, if your investment company fails.

In a bid to reward investors with smaller saving pots, Dozens will weight smaller funds more favorably. Bonds will be allocated from the smaller bids, scaling up until it depletes the monthly availability. This means the lower the bid, the more likely you are to get the bonds.

Should you get Dozens?

Same with any new banking ventures, due diligence is advisable before making any sizable investments. For Dozens monetisation plans to be a reality, people need to save and invest before any monies can be realised. The 5% bond is competitive enough and the fee-free overseas spending is likely to attract frequent travelers. If you have a small savings pot, the app might give you enough flexibility to get started.

By Jeff Mwaura, Jeff is Kenyan based freelance writer with a focus on technology and finance.