Changing interest rates

Why do you not increase interest rate on existing Paragon savings pots? Do you really have to manually withdraw from the old one (0.15%) and redeposit to get the 0.30% now being offered?

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That’s the agreement you made with Paragon when you opened the pot.

If you want a new agreement and a new rate, yes, you have to open a new pot.

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Yep, I agree this is a poor UX.

To withdraw funds from the old pot takes a day. Then names, goals, locks, pictures etc have to be set up again on the new pot, and finally any interest from the old pot goes into your current account, rather than the new pot.

My interest rate went down without my intervention; it should go back up as well.

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If only life was this fair eh.

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A new Easy Access savings pot option has appeared in last couple of days - 0.65% with Charter Savings Bank.

I’m still hesitant to withdraw savings from my old pots which are 0.15% now (originally 1.15%) because I don’t really wanna lose the history of how my savings have been progressing over time.

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Why would the history be relevant to you :eyes: surely just seeing the overall figure is more of a flex, or is it one of those it’s taking me X amount if months to get to this point you like to see

The 2nd part - I just like to see how long it’s taken me to get to certain points etc. For some of my pots I put a fixed amount in each month so it doesn’t really matter, but with others I split what’s left at the end of the month into various pots, depending on what my biggest priority is at that point in time.

I hope that at some point pots in monzo will have more features like timescale related goals, graphs to show savings over time etc etc. So I kinda also want to keep the history so that if the features do get more fleshed out it’ll have the data to do something with.

I dunno, maybe I will just withdraw it and put in the the new rate option. I’ll ponder it a bit more first :joy:

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Just done this again for four pots after @monzo2018’s tip off.

It still sucks.

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Just done this too. Little bit alarming that the funds in a savings pot just completely vanish when you archive a pot. I understand that it says they will be deposited next working day, but it’s a little disconcerting to not see the funds anywhere in the app. I was expecting the pot to be greyed out or something while it’s in the process of closing.

Edit. Scratch that. It’s now appearing in my main feed as a pending transaction. That’s reassuring.

I wonder how this will look in my financial spreadsheets. I have a feeling my net worth will temporarily drop because of the gap between pot archiving and transfer into my account.

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I’m curious why folks even bother with these at all when things like Marcus and Atom exist.

Is it just because they’re in the Monzo app or as it something else?

Rates are poor, withdrawals are slow, the UX is poor, and rather than just put the interest up or down, you have to keep an eye out for new pots and move everything manually. Seems like more hassle than they’re worth.

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If it was an easy access pot the agreement would have included the possibility of the rate being changed by paragon, so they could have lifted the rate on the old version.

Consider setting up your own spreadsheet for historical tracking so you’re not bound to a particular account.

Probably. I expect many (most?) people don’t want accounts at more than one bank or don’t want to go through the process of opening a new account every time a new market leader comes along every few months.

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For me personally it’s pretty much just this. I value having the bulk of my finances in one place, automatically updating my finance spreadsheets. I have a chunk of my savings in shares which is where I see actual returns. I use Monzo saving pots purely so that my pots with slightly larger sums in (emergency funds, holiday funds, next car fund) are able to see at least some returns.

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I opened a bunch of savings accounts with Chase and moved each of my Monzo pots over there. Goodbye 0.3%, hello 1.5%.

The transfers are instant, the UX is better than Monzo, and each “pot” has its own account number and sort code.

It’s everything a Monzo pot should have been.

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Yep, it’s a good question.

For me, it’s that I have my longer term savings in Marcus, and when I opened that account, it was only possible to have one account- no other “pots” to use the Monzo term. I believe this has now changed.

The Savings pots I have in Monzo are all shorter term savings goals, with most of them likely to be emptied within a year or two on various things- Holidays, iPhone, Steam Deck etc. The amount of money in them is normally under £1000, so coupled with the fact that they’ll only be open for a year or two at most, we’re talking a few pence difference in the total values.

The Marcus account is one that I don’t expect to touch, short of emergencies and larger house purchases. It’s not as vital to me to have daily visibility on what the exact number is.

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I can’t just close and reopen as mortgage application will want the history. I like having sight of accounts in one place and quickly topping up savings but think once I’ve got a mortgage I can’t justify the lower rates just to keep in one place.

You get statements for pots off Monzo, that’s a non issue for mortgage providers

Can you get them once closed? Thats the sort of thing I wouldnt remember to do before closing!

Yes you just message support and they’ll provide statements. I needed them for long gone pots, they have to keep them for regulatory purposes. So once it’s closed these still a digital copy of that statement they can gather for you.

Edit - you’d probably find the mortgage provider tells you that you need a statement for the pot even if it’s open and your main statement shows the money going in. Mine wanted them, which is why I had to ask for a copy. All mortgage providers work slightly bit differently though, so maybe you wouldn’t come across that request.

The agreement cover both ways:

Can Paragon change the interest rate?

Yes, Paragon have the right to change the interest rate at any time for their own reasons. If the change negatively affects you then we’ll let you know at least 14 days before they make the change.

If it’s a positive change, Paragon will make it immediately and we’ll let you know within 30 days of the change being made.

Again the rate rise to 0.70% and nothing was done.

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I agree this is super frustrating. I’ve only recently closed a 0.3% paragon savings pot to move funds to a 0.65% savings pot. Now there is a 0.7% saving rate. Given the line in the T&C’s about what should happen if the rate increases, I think an argument could be made for Monzo breaching this agreement.

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