So I decided being in credit all the time with my utility company was bad, why should they earn interest on my cash when I could be!
I’ve now got a bill pot setup with Monzo and the utility company charges me the exact amount of the utility used every month, and I pay the yearly averaged out amount into the bill pot every month.
So sometimes e.g. in summer for gas/elec the pot will have more cash in than they are taking out, sometimes the payment taken will be more than the monthly amount that goes in but shouldn’t matter because it’ll have built up etc etc
At the minute though you can only have bill pots as normal pots and not savings pots, but imagine if everyone did this how much interest people could earn (small I know) and how much monzo could make off it…?
I see a notification in advance on my bills pot so why not just schedule the withdrawal from savings then, or cover it in some way temp like they do for get salary early, got to be a way to stop utilities having hundreds of pounds of people’s money because of what seems to me like old school billing
Have you checked the unit prices and standing charges for both gas and electricity on the plan you’re using now, compared against those for a fixed-sum plan, where the energy company direct debits the same every month?
Often the energy companies charge you more per unit to bill you in the way you’ve elected.
If yours is, you’ve just budgeted a bit of a false economy.
