There’s a fundamental problem with Pots for Monzo Business.
We find Pots extremely useful for budgeting, because they do away with the need for manual spreadsheet record keeping.
But as a business builds up cash reserves these pots become increasingly expensive to maintain, because they don’t earn interest.
For a company with £100k in cash reserves, using Pots for budgeting effectively costs them £4330 annually (at Tide’s current interest rate), which is a ridiculous amount to pay for Pots.
And as soon as we say to ourselves, well let’s not use Pots, then we eliminate one of the very top reasons we use Monzo Business. If we move our cash reserves to a different provider, we might as well move all our banking to that provider.
The solution, from my point of view, would be the ability to open multiple Savings Pots. Ideally the interest rate would also be more competitive, but at the very least we need all our Pots to be interest-earning for them to make any business sense.
Yep, there’s a thread for the business savings account and I’ve made this exact point. Reponse from Monzo staffer was that’s really interesting - result: no change, probably more than a year on.
They should just pay interest on the Business Current Account !!!
I don’t know why they don’t and instead insist on us spending a lot of effort managing a savings pot. Having to manage this (moving money in and out of the savings pot constantly to cover outgoings) is counter to their PR about being user friendly.
I suspect that they do this on purpose because they don’t want to pay interest. Making it hard to manage a “Savings Pot” encourages users not to bother putting money into a savings pot.
The interest rate is super low anyway. Makes me what to switch. I hate when they suck you in with talk of being user centric then employ these dark patterns.
Agree with the comments. Why can I only have one account that pays interest with a max deposit limit as well. I do not want to have to open and manage any other accounts so having multiple would be a massive advantage.
This sounds very simple Monzo, but looking at the amount of comments/feedback from monzo in this section I think we can see where their interest sits at the moment.
We’re in the process of opening an account with Cynergy. The only thing holding us to Monzo at that point will be the small effort required to switch over direct debits.
Cynergy savings can transfer to/from Monzo via faster payment same day.
You can use it as savings accounts only.
Note that cynergy doesn’t integrate with accounting software packages, thus best to just use their savings accounts alone without a business current account. Which is possible.