This is a simple question to the monzo team - do you intend on paying in-credit interest into current accounts? Thanks
I would doubt it as (a) they have said in open meetings before that they don’t plan to, and (b) it would eat into revenue from overdrafts and hence perhaps force overdraft charges up
It looks like the answer’s no -
It’s hard to see how Monzo would fund the interest payments because aside from the overdrafts (which will initially be Monzo’s only meaningful source of revenue), it sounds like they’re not planning to do anything with our deposits that would earn significant money.
But obviously if you want to earn money on your balance, then you will be able to invest it, through a provider like MoneyBox who will hopefully be integrated with Monzo via Monzo’s marketplace.
Surely they would fund any interest rates using the rates the company receives on the money they hold? I don’t really care if the bank keeps this at the current rate of 0.25% and the value Monzo are adding to current accounts, but it’s not really fair to say it’s unaffordable.
yes it is, when you see the cost of issuing bank cards free to every customer, costs of providing free ATM withdrawals to customers equating to ab average of just over £12 per person, etc…
Ok, so I’m a ‘Jonny come lately’ to Monzo but thus far I have been really impressed with everything about them (and I am known in. Y circle of friends for being sceptical and to complain about everything if I feel that I am not receiving good customer service).
What I don’t understand is why people are so hung up on things like in credit interest rates on the new current account.
Correct me if I am wrong but surely one of the reasons behind choosing Monzo as your new bank is for the consumer have the ability to pick a bank that does things differently and approaches every aspect of its banking offering and in the future it’s marketplace from an angle that has not been utilised by the legacy banks so that Monzo can truly offer a level of service that is unheard of currently from the speed of transaction recognition, to the verification services to join the bank and the ease of navigation around the app.
If I was looking for a bank to pay me money for the pleasure of having my money in a current account I would get a Halifax account, if I wanted a bank that charged me a ‘service’ charge for ‘free’ extras I would get a Lloyds account but what I want is a bank that will tell me exactly where my money is at any given moment in time, where I have spent it and ‘oh damn I lost my card’ no worries cos I don’t have to call up and report it, I can just freeze it using the app then if I happen to find it down the back of the sofa, no harm, no foul instead of waiting 5 days for a replacement card, I’ll just unfreeze it cos I’ve found it.
Outside the box people, stop thinking about the little things that don’t necessarily matter and look at the bigger picture of what Monzo are trying to build for us.
Ok, sermon over
For a moment I was annoyed they didn’t give interest, but I don’t often have much in my account to get interest on, just wages in, bills out (not long after wages come in), so this is a non-issue as you say!
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