Changing interest rates within Monzo

[16bitkieran (Kieran)]

Easy Access Savings Pot version 1.1 6 August 2019

[Lewis_P]

that’s interesting, mine is the same. I guess its probably normal for the same saving product to offer different savings rates to different customers

[Paulw (Paul)]

My Charter is also 2.84%

[sacha]

New 2.50% rate now available from Shawbrook in the app.

[Moddingfriendly (Kyle)]

We will normally increase interest rates (if approved by our partners) on the 1st due to payouts so that your rate doesn’t change mid-month.

Sadly, we currently don’t control when partners can change their rate, so we are at their whims. As you’ve all seen some partners want to keep money in their products no matter what and will raise the rates for existing customers (but keep new customers on median rates) whereas others are only looking for new customers and will let their older rates slip.

OakNorth moved all of their rates up on the 1st to the same rate 2.25% (but they have a higher rate for new customers still)

[Revels]

@Moddingfriendly

Sadly, we currently don’t control when partners can change their rate

I get this bit, but if there was some sort of logic that says “Pssst, you’re getting 2.25% from OakNorth, but if you open a new pot you’ll get with Sharbrook you can get 2.5%”

The people that have lots or lots of standing orders will be still be inconvenienced, but it would be a good step forward.

[Moddingfriendly (Kyle)]

The issue is you look at the Charter Pots in this thread, Charter turned around and raised all the existing issues by 5% but left the new rate behind. Would you be annoyed at us if we told you, hey you can get 1% extra but we cut you out from getting that 5%.

We do hear your voices about the pain that this process brings you and we are working on ways of making it better so keep giving us feedback and as a community, we will help shape this into the best product it can be

[DaveJ (Dave)]

Thanks for a response from Monzo about this. Maybe it’s time for a Monzo backed savings account with interest

Show them external providers how it should be done

[DaveJ (Dave)]

@michaelw90

Not till they increase the interest rate on plus/premium.

[Carlo1460]

@DaveJ

Maybe it’s time for a Monzo backed savings account with interest

The tech is ready there as they can add interest to paid accounts.

[sacha]

Paragon now has 2.55% for instant access.

[sgruppetta]

While earning interest in Monzo pots is a good concept, I do not find it competitive. Even if they offered the same rate as say Chase or Zopa, you do not have instant access, rather you can only withdraw the next working day, which I really dislike.

In any event you can always find better interest rates elsewhere.

[JIMMWX (Village Idiot)]

@sgruppetta

rather you can only withdraw the next working day, which I really dislike.

Just to touch on this - quite a few (though not all!) have penalties for withdrawal (for example, my online bonus HSBC goes from 3% to 0.65% in that month if I choose to take money out) so I’d rather wait 24h with no interest penalty than have that.

But I agree, there are slightly better rates out there if you know where to look. But equally, they often have caps on money in, or are not even 24hr access.

[xnox]

I value seeing the balance in Monzo app. Which most other savings providers do not offer over open banking.

[PaulUK]

@JIMMWX

(for example, my online bonus HSBC goes from 3% to 0.65% in that month if I choose to take money out) so I’d rather wait 24h with no interest penalty than have that.

Emptied mine on 1 Feb 2023. Account not so appealing now.

[PaulUK]

@xnox

I value seeing the balance in Monzo app.

As I use the HIDE feature of both the Monzo and my Chase savings accounts, this would not be a Monzo feature that I personally would value.

[xnox]

Seeing the irregularities in rates for existing and new accounts, both within Monzo, and elsewhere; I have decided to open a savings pot with every provider now. To see if sometimes they will have higher rates for existing customers only.

[sacha]

2.61% now from Oaknorth.

[o99]

@Moddingfriendly

The issue is you look at the Charter Pots in this thread, Charter turned around and raised all the existing issues by 5% but left the new rate behind. Would you be annoyed at us if we told you, hey you can get 1% extra but we cut you out from getting that 5%.

We do hear your voices about the pain that this process brings you and we are working on ways of making it better so keep giving us feedback and as a community, we will help shape this into the best product it can be

You could make the experience so much better by dictating to banks that they must have a single easy access rate for all customers (not one rate for new customers and another rate for old customers). It’s your marketplace so surely it’s within your power to dictate this as a condition for entry. Of course, banks using the marketplace need to be able to compete with each other so easy access rates should be allowed to vary between banks but if you could stop the within-bank variation it would be so much better. Also, it need only apply to easy access accounts (not to fixed term accounts which by their nature need to have different rates depending on when account was opened).

I personally think this way of operating (single rate for all customers) is why the experience with Zopa is so good.

[monzo2018]

New savings pots overview screen - 3% easy access! Instant access and no minimum deposit!