Getting Paid Early on Interest Pot Withdrawals

I have an idea for Monzo based on Getting Paid Early.

So afaik, the way getting paid early works, Monzo get sent money via the Bacs process, and the day before, they know it is going to happen, so they release money to you, then when Bacs comes through, they keep that new money.

So with that in mind, one of the issues with interest savings pots is that you have to wait until ~4pm on the next working day to receive the money.

My idea is that when you request your money from an interest pot, Monzo should advance you the money straight away, and when the money actually comes through at 4pm the next day, Monzo should keep the money.

This would solve the biggest issue with interest pots, the delay. Anyone have thoughts on this?

I think that seems like a good idea but (I dont know the answer to this) can you cnacel a withdrawl from a savings pot?
Monzo would have to get rid of that if they did it your way

Nice idea. I think Monzo would have to think about how they would handle a few scenarios:

  • Lots of people withdraw their money at once. Monzo then have to cover a large amount of money. Not too dissimilar to a big payday you might say but salary is coming in the next day almost guaranteed but pot withdrawals are next working day so can be up to 3 days later. You might also say this isn’t very likely to happen but if a new product comes out with a better rate I’d imagine you see a lot of people instantly pull their money out of the pot to set up a new one.
  • I think one of the reasons for the delay to the next working day is to ease the interest calculation to a full day. If you get advanced the money do you lose the interest for that day? Do Monzo get that interest since they did wait till the next working day to receive the funds? What if I’m not in a rush for the money and I do want that extra day’s interest?

All possible just needs some clear and well explained rules.

Just to note: Pot Withdrawals don’t use BACS :+1:

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I am fully aware that they don’t use BACs. But if money is in the pot, it is there for Monzo to collect, so there is less risk than other possibilities

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The big delay in taking money out of the 'easy access interest earning pots was one of the reasons I moved my savings to a Marcus account. With Marcus, when you make a withdrawal you usually get it within the hour.

I don’t plan on using the interest earning pots anytime soon since with Monzo Plus you get more interest using a normal pot (up to £4k). This would definable be a welcomed feature though.

Perhaps a limit on the amount each user can access instantly would work. For example: get up to £100 instantly, but have to wait for anything more.

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Couldn’t Monzo forward you the money then take the money when it is actually withdrawn from the savings account

Basically so saving accounts could be instant access

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Yeah, was thinking about that, so thanks for the thread. In this case you would imagine it is even lower risk of needing recalling, though interest may complicate matters a bit

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The paid early feature is different though in my understanding the amount from the payee has already done the debiting/creating and Monzo are just giving you access to it before the 100% confirm that nothing went wrong. If it is wrong then it’s “taken back”.

I don’t think Monzo are using their own money whilst they wait for the payees money to be credited. So I don’t see why they would use their own money to credit you whilst it’s being released from the lender. :thinking:

Because it would be convenient for their customers :open_mouth:

I personally believe this is totally something we should do as standard.

There are quite a few differences in how the accounting and liability works between Bacs salary and savings pots, which is why it hasn’t yet been done.

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I suggested the same thing in July

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Let’s keep the topics together then.

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