Clarification of interest

Help
1

Hello,

I’m brand new to Monzo.
I couldn’t find the answer to this question anywhere or where I could ask Monzo direct so I’m posting here.

The Monzo Plus account costs £5 per month and pays 1.00% AER/Gross (variable) interest up to £2,000.

Does anybody know if £2000 is the maximum amount of interest the account will pay or is £2000 is the maximum balance on which the interest will be paid?

The statement is a bit ambiguous I think.

My concern is that If £2000 refers to the maximum balance then the maximum interest you could earn per year is £20 which is not enough to cover the £5 per month fee.

Thanks,

Matt

1 Like
2

It’s interest paid on balances balances of up to £2000

It’s meant to be a perk, not meant to cover the fee. Otherwise how would Monzo make money on the deal?

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3

Wording seems unambiguous to me, from the website:

Earn interest on up to £2,000 in your account balance

So the correct (and only) interpretation is “£2000 is the maximum balance on which the interest will be paid”

Source: Monzo Plus Account | Put money in your hands

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4

It isn’t meant to cover the fee as otherwise it would be costing Monzo money, not making them money.

5

It definitely is unambiguous in app too

image
image1170×180 79.8 KB

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6

Thanks I agree, that is unambiguous.

I only saw the one ndrw posted which to me is ambiguous.

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7

It still says

on up to

If it said “up to”, then I’d agree, but the on makes it clearer.

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8

Yes, that would make sense.
I don’t think my brain is working well this week.

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9

Is it easy to downgrade to the Free account as I cannot see myself using any of the extras that the Plus account gives?

Thanks,

Matt

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10

Just cancel it, there will be a charge if you’re in the first 3 months.

But if you’re very very new, you might be able to tell them you didn’t understand about the interest.

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11

Thanks Revels,

I’ve just found out how to message them in the app :+1:
so I will ask there because it is very hard to find the answer about changing the account in the help pages.

I knew about the interest and charges but I’m having a bad week so I mis-calculated how much 1% of 2,000 was and thought the charge would be covered. :crazy_face:

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12

I think the 14 day cooling off period applies here, but if you ordered a Plus card, they’ll charge £5 for it

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13

Thanks, yes I’m happy to pay the £5 (my mistake) and I have already done so.

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14

I agree, but to me this another example of how Monzo’s obsession with brevity can lead to confusion at times.

Clarity should always be chosen over brevity IMO.

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