An update on getting interest paid on savings


#647

I wanna try it. :disappointed_relieved:

But I understand why it’s random. :pensive:


(Oliver Foggin) #648

How often is the interest calculated on these pots? Thanks


#649

Calculated daily and added monthly.


(Jamie Watson) #650

I hadn’t really thought about it until I got an invite to try the savings pot bus as a current RCI customer the delay in moving money around is slightly better with this and there’s the advantage on having one less account. I suppose the 0.4% loss of interest will be a price worth paying.


(Harry Barnes) #651

Outside of the people who want to simply have all of their money in one place, I’m struggling to see why anyone would take advantage of this? Perhaps I’m missing something, and I’m not trying to simply be down on it - I would genuinely love to hear why people would use this, over, say, Marcus?

Because money is complicated, and Monzo makes it incredibly simple.

It took me just 2 minutes to move my money into a Monzo savings pot yesterday and now I’m getting 1% interest on it when I previously was getting none, so as far as I’m concerned that’s a net gain.

Yes, I could spend time looking around for the very best deal to get that extra half a percent, but the hassle I’d have to go through, doing research and reading a load of information on the Marcus website then filling out endless forms to open a separate account, does not sound fun and as a result I won’t ever get round to doing it.

It’s just like with switching energy suppliers, I know I could save money by switching onto a new fixed plan every couple of years but the hassle involved with doing so means that I won’t. However, if Monzo were to make it possible to switch in 2 minutes then I’d be far more likely to do so, and for that, I’m more than happy to let them have a decent commission.


((╯°□°)╯︵ ┻━┻) #652

Not to be pedantic but the Marcus form is tiny so you can be up and running in a matter of minutes. Just take a look at what people have been saying in this topic: Marcus Bank

Same with switching energy suppliers - I’ve done this recently and it literally took no longer than 2 minutes and my bill has almost halved so I don’t think hassle comes into the equation anymore these days. As a result of spending 2 minutes of my time it has saved me hundreds of pounds per year and the same applies with interest on my savings. You’ll find that half a percent (even though Marcus is more) adds up to quite a bit and it is therefore certainly worth considering all your options instead of going the “easy route”. :slight_smile:


#653

I see what you are saying, and I’m sure there will be others who value the ease of setting up, coupled with the delay in withdrawing funds.

But as @Ordog has already said, something like the Marcus account is incredibly easy to set up - Although I appreciate people would probably assume it wasn’t.

My biggest gripe with the Monzo account is not the interest rate, because 1 or 1.5 is so negliable for a lot of people.

It’s the “next working day” withdrawal time frame.

If I had to dip into my savings, the chances are it’s an emergency, and i’d need them there and then. Requesting on a Friday, and receiving on a Monday just seems like everything Monzo isn’t.

Completely get it’s a first version, and it’ll possibly lead the way to future integrations with other partners, but I’m just disappointed this first integration seems so… backward.

However, like I said, that’s just my opinion for my situation - I’m sure it’ll be great for others who really don’t want to look elsewhere.


(Harry Barnes) #654

I must admit I haven’t actually gone through the sign up process for Marcus so perhaps it is easier than usual, but whenever I’ve signed up for bank accounts in the past it’s taken me ages and required a lot of form-filling so that’s created a perception in my mind that I automatically apply to all bank accounts with traditional banks, like Goldman’s, rightly or wrongly.

While it’s encouraging to hear that you succeeded in switching energy supplier in 2 minutes, I’m not convinced it’s usually that easy. I’ve actually switched fairly recently and it took me ages to look through the endless different plans available online (some with fixed tariffs, some variable tariffs, so many different suppliers, different unit rates and standing charges…) to work out if any would save me money. Then I had to call them up and spend about half an hour on the phone, waiting in the queue for an operator then listening while they tried to tell me about all the plan options they had available, then giving them a lot of information about my situation and energy details, then having them read me the terms and conditions before I could complete the switch.

To me, there so much value in the simplicity and ease that Monzo offers. Therefore I completely agree with you @nickh that it does seem quite un-Monzo-like for them to have this next working day restriction on moving money around and I’m also hoping to see this removed down the line. I made a transfer out of my savings pot this morning and the feed is now saying that the money is going to arrive in my current account on Monday at 15:00. It would seem far smoother for Monzo to just make the money accessible in my account immediately when I withdraw from a savings pot even if they have to wait another day to receive it back from Investec behind the scenes.

Better hope I don’t have any emergencies any time soon :wink:


(Colin Robinson) #655

@harry Have a look at

I’ve been using them for about 3 years now, costs £25 but well worth it for me. Takes all the hassle out.


((╯°□°)╯︵ ┻━┻) #656

That does sound like a huge inconvenience :open_mouth:

When I did it, I used the money savings expert comparison tool which did all the comparing for me after I simply put my usage in. The website told me that Outfox The Market was cheapest so I went there, gave them my details and current provider and they did an equivalent CASS service. It was all sorted so quickly that I hadn’t even finished my brew :rofl:


#657

This is pretty much my experience as well, you shouldn’t have to be doing any searching yourself or phoning anybody these days. There are even companies now that search best prices for you and switch you automatically (that are free) without you having to do anything :astonished:

(Edit) http://lookaftermybills.com


(Adam Robertson) #658

Not impressed unfortunately, the 24 hour wait means it’s useless for an Emergency Fund.

Plus, what happens if it starts with £1000 and then I take 50p out? Do I get 0% interest on everything? Is the interest calculated on the days you have £1k+ in the account, or does the account have to close?


#659

#660

You have to close the account - it’s not possible to withdraw below £1000


((╯°□°)╯︵ ┻━┻) #661

Just to be clear you have to close your savings pot, not your account. What @o99 posted directly above yours is from Monzo themselves and is accurate.


#662

There is now an even better instant saver on the market.

https://www.thenottingham.com/savings/products/esaver-instant-issue-9/

Has the same limitation of needing £1000 in the account, but offers unlimited instant withdrawals, and 1.55% interest


#663

Nice.

For anyone curious, the interest is paid annually, rather than monthly.


(Richard Cook) #664

Hi all, just a quick update to let you know that we’re now adding another 12,000 people to the Savings Pot test. So keep an eye out for an invite :eyes:

We’re doing this because we want a larger sample size to help us understand what people do with their money (especially around payday).

Thanks for your feedback so far. Please keep it coming.


(lewis oconnor) #665

will this be random again? or anyway to enhance our odds?


(Richard Cook) #666

It’s still random! We want it to be that way to understand how folks use it. This update from @jackcook has some more info: