Yea, that’s true. I think also given the fact that they (should in theory) get a % from the money that we store in our accounts if they sit it in BoE etc.
In a “how could we help” thread, some interest is better than no interest.
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As someone who just put a relatively small lump sum into an easy access savings pot, it would be awesome if you could make a ‘tracker/flexible interest’ option.
Shawbrook bank have just changed their offering with higher interest on savings and it’s frustrating that my account won’t update automatically to the better option.
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Welcome to the community @Clgrv! I’m jealous of that photo with Pluto! He was scared of me.
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Maybe do something similar to Snoop - financial/consumer tips based on spending activity.
Potential for app clutter though. Snoop’s app is quite cluttered.
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Haha! Thank you! He’s my absolute fave character to meet 
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I think there’s a difference between giving everyone money, in either interest or cashback (not going to happen, Monzo just hasn’t got the funds to do that, and let’s be honest, a couple of quid every month isn’t going to touch the sides) and being ethical around always paying the highest rate of interest to those customers who take out an interest–bearing product.
Other than that, my thoughts are being extremely careful when marketing lending products to customers who you can see might be getting into trouble.
And leveraging Monzo’s fantastic budgeting tools, which you improved this week. Perhaps a notification sent each week detailing how much I’ve spent on coffee, as a nudge to spend less. Combined with maybe a way of setting a limit for spending in a category each week, and if I don’t hit that, giving me the option to save the difference instead?
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It’s great to see Monzo actively thinking about this. Some ideas. For vulnerable customers who pass an eligibility check, inflation beating savings account. Deferment of loans, overdraft pay back until next spring with no interest accrued for the period. For those of us that are least affected, adding something like the charity donations but to support your vulnerable customers.
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There’s a whole bunch of product ideas that would help (budgeting, future planning, bills comparisons etc), but the time when Monzo would turn something around in a week or two seems to be long gone.
Instead, there are some fundamentals:
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If people are struggling, they really need easy access to help and support. I’ve been consistently critical of what I think is the indefensible decision to hide chat. Now more than ever it needs to be readily available.
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Easily locatable content about what to do if you are experiencing difficulties would be helpful. Help still isn’t particularly helpful (I find at least).
I’ve been noticing that I have less disposable income recently. And then I worked out that my salary has been decreasing in real terms over the last few years. I can cope, but it’s the energy costs that are really worrying me, not just for me but especially for older relatives and those who I know don’t have quite so much a buffer.
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If we’re back in product world, then even if it was 1pc interest for everyone, it’d be great to have the ability to donate that to charity, or for Monzo to use that to support vulnerable customers instead. I would want to be able to gift aid it, though.
And I’ll probably post about this separately, but something in Trends to monitor bills over time - and even to offer switching deals - would be very cool indeed.
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The cost of living crisis is causing untold misery so its good that you guys are reaching out to the community to listen and receive feedback. Much like a lot of our community and wider public, I have spent the best part of a decade dragging myself out of poverty, living and working within a precarious environment and it feels as though the system is rigged against us. If it isn’t a banking crisis, austerity measures, Brexit or a global plague… the cost of living is dragging us back to the 1970s!
How Monzo is helping
The main way that Monzo has helped me is providing access to financial products at a time when I struggled to access products from my previous high street bank. This has meant I have been able to better juggle things whilst also maintaining a safety net.
One of the commitments I made at the beginning of this year was to learn about my own financial behaviour and have better understanding of my finances. The labelling/categorisation and analytics provided via Monzo+ have enabled me to make better financial decisions. Having an awareness of the pressure points caused by the increased cost of living means that I am able to make adjustments. Part of this has also been about centralising my financial products. This is where I have closed other accounts and instead opting to use flex, overdraft and loan options- putting my disposable income to better use. I have also utilised other features such as the round up pot x5 to save some money and instil some discipline… I am wasting less money on things I have at work or home for much cheaper/free. For example I waste so much money buying coffees from my work refectory even though we have a kitchen stocked with free tea and coffee.
Monzo helps by continuing to provide myself and others with the tools we need to make better financial decisions whilst also continuing to offer affordable financial products that help us to manage our finances.
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Can I just say thank you so much for sharing those personal and candid thoughts @FrancoJJameson
I’m so glad that you’ve managed to pull yourself out of poverty. You must be proud. And I hope the folks at Monzo take some satisfaction in having helped you to do that.
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Make bill pots work - ie if direct debits are same every month why cannot not calculate the monthly amount.
I suspect this is for 2 reasons - it a joint account - need I say more!
A couple of direct debits go to same organisation and it seems to get confused by this.
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Another thought from me, albeit slightly longer term.
I really think that something needs to be done about releasing pending payments in Monzo.
Granted, it’s an issue with debit cards generally. But it’s much more of an issue for Monzo because there is a live balance.
In a time where lots of folk are going to be hand to mouth, having a pending authorisation where Monzo tells you to talk to the merchant or to wait 30 days isn’t cool.
If self service release isn’t possible, how about extending a 0pc overdraft to cover pending amounts? Or otherwise ensuring that those who are really on the breadline aren’t disadvantaged?
And, failing that, more empathy from support then the fixed scripts would be great.
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Speaking of overdrafts, now would be a good time for Monzo to adopt the Starling approach and not apply overdraft charges while the overall account (including pots) has a positive balance.
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I would love this to be implemented.
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I hadn’t thought about this - if you have a net positive balance across Monzo accounts but your main account is overdrawn due to a transaction, I would have thought that Monzo would firstly draw the cost of the transaction from your available balances (with the exception of a savings/locked pot). I’m learning something new every day!
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Perhaps some nudges are in order. E.g. if you spend at a coffee shop regularly, get a nudge on how much you have spent on it this month. Similarly for maybe Xbox, gambling or other gaming related credits.
Not sure interest rates on deposits will make much difference to the most vulnerable customers, as they are unlikely to hold significant savings in the first place. Maybe help those in persistent debt more, e.g. if customers are struggling to replay Flex amounts, allow them to spread the outstanding cost over a much longer period interest free (assuming they wouldn’t be permitted to Flex new items at that point until they cleared the existing debts).
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I was reading some of the FCA guidance on charges recently, I might be wrong but I am sure banks are required to offer affordable repayment terms for customers in persistent debt but this only kicks in after 36 months. In those circumstances, I wonder if Monzo charges compounded interest on the outstanding balance?
Flex couldnt run for 36 months (12 month plans max) and it’s balance specific, so if you purchased something for £5k 36 months ago and only paying the minimum, the bank is responsible for reaching out to offer support prior to that 36 month window.
As below, paying more in interest than off your balance over 18 months, classed as persistent debt. (Semi corrected myself)
Help if you've been contacted about your credit card and persistent debt | MoneyHelper.
If in that time you also added another kind of balance on the card, it’s only reflective of the 36 month balance, not the whole balance on the card.
Different balances occur in form of money transfer, balance transfer, then purchases etc so can run 3 balances on the same card with different terms.
This isn’t necessarily a plan, it’s to help customers pay the balance off faster and recommend they increase they payments to save on interest.
Or, discuss this to find out if they are in difficulties and then treat with standard forbearance.
So, maxing out and then paying off your flex within 12 months, for 5 years in a row, isn’t classed as persistent debt, because it’s not the same balance.
That’s my knowledge (as always, happy to be corrected) gained from LBG credit cards 
Edit:
In relation to compound interest, I’m not sure here. It does give you the total cost upfront and anticipated amount of interest on the intend you pay over the agreed period (compound?) And adds this to your total balance there and then.
Whereas a credit card doesn’t assume that, but charges you monthly and adds this on a monthly basis depending on your balance that month (not compound?)
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Having the Option to freeze flex payments until a percentage of the balances has been paid off to reduce recurring debt would be a good idea.
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