I think it’s a bit unfair to not automatically update the interest rate on savings pots to the better rates now available. Surely this would be an easy fix? Otherwise I’m always checking to see if I’m getting the best available rate in the app, and leads me to think you’re just hoping I don’t notice so you can keep me on the lower rate. It’s a bit annoying to have to close pots and reopen them all the time.
Sounds sensible solution - until now and with small sums involved I have found it more convenient to not have multiple accounts but am now just annoyed at monzo failure to adjust rates up as well as down! Disappointing from them.
I’m a savings engineer here at Monzo, sadly we don’t control the specific savings product you are on the rates are defined by our partners and differ from the latest rates. This goes both ways during the pandemic older customers were getting better rates than new customers, now that we are trying to get back to the new normal rates are increasing and our partners are raising rates for both our latest products available for new customers and normally for older products too.
These might not happen at the same time but we are always talking with our partners to try and get the best deals we can for our customers.
I hope this helps explain why these rates differ to what is available from new customers straight away.
They did reduce automatically - pots opened before the pandemic were available for 1.15%, this was gradually reduced (on already opened pots) throughout the pandemic and has been stuck at 0.15% whilst new pots have become available with higher rates.
Our providers have been raising old rates this isn’t something that we normally shout about (unless you’ve got one of these pots) Whenever our partners raise the rates you should get an email and your Summary Box will be updated on the day they are updated to reflect the new rate.
We are pushing our partners to raise rates to make sure the Monzo marketplace can help our customers save.
They did decrease during the pandemic, but users with the older rates were left on the higher rates longer than newer customers. Basically, the same as you are seeing in reverse. Eventually, we hope the rates will level out at the same rate but we need to wait for our partners.
This isn’t something I have experienced yet on my existing savings pots that I’ve had open since before the pandemic, so it’s good to know that this should happen in time. As it didn’t seem that this was happening, a few days ago I closed a couple of the old ones and re-opened them to get the new rates, but it would be better not to have to do that.
It would be cool if you got an in app notification when new savings rates were available for opening new pots.
The main problem here is that you are not fullfilling the terms you send to us when we open this product:
**Can Paragon change the interest rate?
Yes, Paragon have the right to change the interest rate at any time for their own reasons. If the change negatively affects you then we’ll let you know at least 14 days before they make the change.
If it’s a positive change, Paragon will make it immediately and we’ll let you know within 30 days of the change being made.
I opened initially with 0.15 interest
I never received any notification when they increased the rate to 0.31% and I had to check and do it manually.
Only my wife received an email when interest dropped during the pandemic because she open the product before me.
This should work in both ways, a notification in the app would be enough to say: “new saving rates available”.
When you open a savings account, you enter into an agreement with the bank, which is usually according to the advertised “template”. Once you’re in an agreement, interest rate changes are according to the T&Cs of your specific agreement. But a change to the interest rate on the template need not result in a change to the interest rate on your specific agreement, even though many banks will make the change anyway. In this case, it sounds like Paragon has not bothered to match them.
I spoke too soon, one of the Paragon pots that I didn’t close and re-open updated yesterday from 0.15% to 0.31% - the same time that the new Paragon pots went up from 0.31% to 0.70%. So it’s good to see it going back up even with the lag I haven’t had email yet but I’m assuming looking at what @Pokora posted that it may take up to 30 days for the email.
I guess what remains to be seen now is if the 0.31% will increase after a certain time period to 0.70%, even if the new pots remain at 0.70%, or will Paragon only bump existing pots up to 0.70% if the new pots move up to a higher rate than that.
Even if they don’t use the same template, I would still suggest it’s a mess.
Each provider should just have a single issuance/template for easy access accounts. If rates need to go up, move them up for everyone using that account. If rates need to go down, move them down for everyone. If terms on the account need to change, change them for everyone.
Whilst rates which are dependent on when you open the account makes sense for fixed term accounts (it’s in their nature), it makes for poor user experience when applied to easy access accounts.
There’s conflicting terms here. Our “templates” are literal templates for the format of the Summary Box. An issue is the word that we use within Monzo to describe our products. But the rest of your message is :chefkiss: (Oh Slack how I miss your emojis)
Yep the rates went up this morning, we had a sneak preview that this was going to happen a little bit ago but we aren’t allowed to advertise these changes before their effective time.
As for the email, you should get one soon. As it’s a Bank Holiday we aren’t in the office (or at our desks at home, to be more accurate) so we haven’t sent one out yet.