How a new start-up could save YOU £450 a year off Oyster card costs – and even Andy Murray’s onboard
CommuterClub aims to help rail passengers save money by offering them a cheaper way to buy train tickets and oyster travelcards
LONDONERS could save up to £450 a year off their Oyster card costs through a new start-up travel fare website.
The company is funded by investors, including Andy Murray, and promises to save commuters hundreds off their train costs each year.
Commuters in the UK spend thousands of pounds each year travelling on trains in London, and cross-country, with these costs often making up a third of a person's monthly income.
Those that can afford to stump up the cash for an annual ticket get the best deals, as monthly and weekly tickets cost more.
Commuters on annual passes are also protected from any fare rises for one year, which will come in handy when rail fares rise by 2.3 per cent from January next year.
But the reality is many people can't afford to pay this one-off cost, which can be as much as £9,000 for an annual ticket.
So instead commuters buy monthly or weekly tickets, which are more affordable at the time.
On average, though, monthly and weekly tickets are between 15 and 30 per cent more expensive than annual cards.
That's where Commuter Club comes in.
The three-year-old company, which currently has around 7,500 customers, offers commuters the chance to pay for their travelcards on a monthly basis, without the higher costs associated with monthly passes.
How the CommuterClub works
Customers take out a loan through the company, allowing them to space out the repayments over 11 months.
These payments are the same as a monthly travel card, for a full year of travel.
The 12th month in the year is free, which means customers only pay for the cost of 11 months' worth of travel.
It means that customers who normally buy monthly passes will save over the year because the 12th month is free.
For example, buying an annual Tfl travel card for zone 1-4 will cost £1,844 for a year. This is by far the cheapest deal.
But for those who can't stump up the cash outright, paying monthly is the next best option.
Normally, a monthly Tfl travel card for zone 1-4 will cost £177 a month, or £2,125 a year.
With CommuterClub, customers will also pay £177 a month, but because the 12th month is free, this works out at £1,947 a year.
What happens if the company goes bust?
CommuterClub is regulated by the Financial Conduct Authority (FCA) which acts as a safety net for customers of banks, insurers, fund managers and other financial firms that go out of business.
Because the company lends its money through peer-to-peer lending platforms - which is why it charges a 5.6 per cent interest fee - customers are protected by the FCA should the company go bust.
That gives customers a saving of £168 over the year on their oyster fare.
Weekly travel cards are even more expensive, at £199 a month, or £2,397 a year for a Tfl travel card for zone 1-4. Customers who normally buy this type of ticket would save £450 by buying through CommuterClub.
All payments include a 5.6 per cent interest fee added by the company.
Customers will also benefit from locking in fares for 12 months, and are able to cancel their account at any time.
Of course, some large companies offer similar annual ticket loans interest-free, so make sure you check with yours to see if this is available to you.
CommuterClub does credit check applicants, but this is a soft search - meaning no mark is left on your credit file.
We pay for your stories! Do you have a story for The Sun Online news team? Email us at tips@the-sun.co.uk or call 0207 782 4368