Business Instant Access Saver

Monzo Chat Business Banking
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Hi everyone :wave:

I’m Candice, a new Product Marketing Manager for the Business Banking team. I’m really excited to engage with you all for the first time, and share some exciting news! :partying_face:

We’ve launched an Instant Access Savings Pot for businesses

In a cost of living crisis, we know how important it is for your business to get more from your money.

We’ve listened to feedback from you and other customers, and today I’m really excited to introduce the latest product coming from the Business Banking team - a Monzo-backed Instant Access Savings Pot :honey_pot:. You may have seen this in personal banking, it’s now available in business and works exactly the same way.

Available to lite and pro customers, it’s designed to give you the flexibility to save interest on your spare funds without having to wait to access your money when you need it.

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How it works

Earn 1.5% AER a year, paid monthly into your Savings Pot :seedling:

An Instant Access Savings Pot earns you 1.5% AER (variable) every year, paid monthly into the Pot you create. It’s great for saving towards those short-term goals like buying equipment, setting up an emergency fund or saving up for future growth.

Access your money whenever you like!:magic_wand:

There’s no waiting around, your money’s always available when you need it.

The Instant Access Savings Pot is flexible, so you can take money out at any time. Withdrawals usually go into your Monzo business account instantly.

There’s no minimum deposit! :purse:

There’s no minimum deposit, and the maximum you can have in a Business Instant Access Savings Pot is £100,000.

You can only have one Instant Access Savings Pot open per account :repeat_one:

It’s our way of encouraging you to keep your savings, tax and budgeting separate. An Instant Access Savings Pot is great for saving towards your business goals like buying new equipment, treating your staff or reinvesting in your business. Regular Pots (which don’t attract interest) are better suited to setting small amounts of money aside for budgeting or paying bills. And Tax Pots, only available to Business Pro customers, automate the percentage of income you would like to put aside for your quarterly and annual taxes.

How to get started

Instant Access Savings are now available in your Monzo app.

To open a Instant Access Savings Pot:

  1. Head to the Account tab or Overview in your Monzo app and tap Create Pot
  2. Select Instant access Savings
  3. Name your Pot and pick an image
  4. We’ll explain how everything works, and ask you to agree to some terms and conditions (which we’ve written in plain English and takes less than five minutes to read)
  5. Make your first deposit or come back to this step later

And that’s it! Your Instant Access Savings Pot is open and ready to start earning you interest on your money.

The Instant Access Savings Pot works seamlessly with some of our existing features too. You can choose to schedule deposits and lock your Pot until a chosen date.

Let us know what you think!

We’d love for you to try it out and share your feedback.

Stay tuned for more to come!

Candice

Terms and conditions apply
Information correct as of 14.04.2023

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Great! However I assume that like the personal ones, you won’t be able to pay DDs, standing orders or virtual cards on this account?

Edit: seems that way. In which case the ability to do a scheduled pot to pot transfer monthly would be useful.

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Is there a legal/tax reason why business accounts get 1.5% and not 3.2%?

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Opened one now and it all went smoothly, thank you! I’ve been waiting for this.

The interest rate doesn’t beat some other options for business saving but it’s nice to earn something and instant access is great.

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For some reason interest rates on business accounts always seem to be rubbish. I’ve been in business for 15 years and never found a business deposit account offering a decent rate.

Don’t get me wrong, I’m pleased that Monzo are offering this account, something is better than nothing, and it’ll more than cover my monthly account fee.

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Lots of providers already offer over 2% for business instant access savings accounts at Business Easy Access Savings Accounts

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you would also have to look at the account charges though to see if they were competitive

eg Cumberland BS business account charges -

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Thank you for your message! :pray:

You aren’t able to set scheduled withdrawals or make payments directly from Instant Access Savings pots as we designed them to encourage you to keep your savings and budgeting separate.

Instant Access Savings Pots are best suited for saving towards short-term goals.

Our Regular Pots are best suited to setting small amounts of money aside for budgeting or paying bills.

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Hi! :wave:

While it’s possible to get a better rate with one of our personal account savings pots, we are competitive for a business savings rate. We will also continue to review the business account marketplace to make sure we are offering a fair interest rate.

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Thank you @kennygrant

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Those charges appear to be for current accounts.

The saving account providers I checked including Aldermore she Shawbrook don’t have any account charges.

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Since moving to Monzo, with the great visibility it gives for all my business finances, including the ability to split funds across pots, I’ve not wanted to move money out of Monzo.

I’m pleased that I can now earn interest on this even if there are some limitations to what I can do with the pot and at a slightly lower rate than is available elsewhere.

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Thanks @Candice.

I have multiple pots for corporation tax, VAT, accountancy fees, insurance etc. Apart from that there’s seldom even £100 in the business current account and everything else goes into a pot called “available funds”. Everything from a paid invoice goes into here after VAT and corporation tax has been deducted. Monthly salary, dividends, pension contributions, standing orders and DDs also go directly from that pot.

A pity that I can’t replicate that with the savings pot but I’ll just do a manual lift and shift of the required funds once a month to a standard pot reserved for payments.

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Yes, the new account sounds as if it suits you/others who want their finances in one place. I have no problem with that.

I am simply saying one should shop around to make sure that they get the best deal for their individual circumstances.

As you said yourself:

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@Candice - additionally, For the reasons of segregation and improved visibility, mentioned in my previous post it would be great (as has been requested for personal accounts) to be able to open multiple savings pots.

I have fairly signifiant sums set aside for taxes but I want to keep those separate and visible - but in some cases funds are in those pots for 18 or 20 months. It would be great to earn interest on those too :slight_smile:

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Thanks for the feedback, we really appreciate your explanation of your current and desired usage of pots! :pray: I’ll pass your comments on to our team to see if this is something that can be added in the future.

If you’ve any other questions then please let me know, otherwise have a great Monday!

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Hi @Candice, I note that the personal/joint account instant access pot interest rates moved very quickly after the BoE rate rise - any plans to offer a similar increase on the business account pot?

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Hi @projectfortytwo, thank you for your message :pray:, apologies for the delayed response.

Instant Access Savings for businesses will remain at the current rate as it was launched recently. We will continue to review the business account marketplace to make sure we are offering a competitive interest rate.

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Hi @Candice,

Virgin are now offering 2% on instant access business savings, apparently open to businesses that don’t have their current account with Virgin.

The fact that I could get 33% more interest there and re-segregate some of my savings (which is the whole point of pots, ruined by the fact you only allow one instant saver and can’t make scheduled withdrawals from it) is tempting.

Will you be reconsidering the interest rate offered, number of instant savers available, or ability to make scheduled withdrawals?