I can’t seem to find the original topic discussing interest rates within Monzo, but if anyone can locate it feel free to merge this 
Savings pots interest rates for Perks/Max customers seems to have gone back up today, from 3.85% to 4% 
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Good spot.
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Confirmed. Both IAS and 1pSavings now 4% (Max tier)
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I had a similar splash screen when I opened the app, but for the lower 3.50%
Only a 0.15% increase, probably off the back of a no change of BoE rate yesterday, a figure that Atom also increased their Reward account by today.
Better than nowt, but my Savings Pots will remain at £0.00 until Monzo becomes competitive.
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Also increased to 3.5% on a standard account without any upgrades (i.e. without Extra, Perks or Max!)
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Anyone any the wiser as to why the Shawbrook rate has been cut? base rate isn’t due revision til May 8th
They cut all the rates for the external savings pots. They don’t offer them anymore.
They’ve been removed to start a new one, but if you have one you keep it.
They’ve probably done the maths and decided that cutting the rate in advance saves £x rather than doing it in a few weeks and it being another 14 days.
And as no Monzo customers can open new ones, they probably don’t care about those existing customers.
hmmm
I read somewhere that the majority of people don’t have more that £5k. I don’t know how true that is.
I also read that most people will likely just invest the money in a S&S ISA into global funds. They’ll probably u turn anyway in about a months time.
Tbh who actually pays tax on savings? I mean even if you have your savings in a non-ISA, isn’t it one of those things most people conveniently ‘forget’ to do a tax return for?
Encouraging people to move money from savings to S&S could potentially impact bank’s lending capacity as well. Maybe a net positive if everyone puts most of their investment into UK stocks, but no one is going to do that.
Most banks/savings providers report to HMRC. I’m PAYE and have been stung with an untaxed interest underpayment in the past.
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Time was, saving interest was taxed at 20% and you could reclaim if you were eligible or pay the extra if you were in a higher tax bracket.
It’s true that most people don’t usually earn more than £1000 in interest each year, but lots of people went into that tax bracket over the past couple of years when interest rates were higher.
My mum was recently sent a tax bill by HMRC based on her banks and building societies reporting to them.
She was most aggrieved as she doesn’t believe that pensioners should pay any tax at all 
- that’s an argument for another thread 
.
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There is a good argument to get money out of unproductive cash ISAs, and into more productive products like Stocks and Shares ISAs, hopefully the Government increases the allowance on those to partly off set the cash allowance drop
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At a personal level, yes. But not sure how much it helps the banking system and country as a whole by rerouting money that would otherwise be lent to small businesses, to mostly American companies instead.
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Even if the limit dropped to £5k, there will still be a ton of cash to prop up the Mortgage business of the banks.
I liked the British ISA proposed by the Conservatives - it was just a political move that Labour dropped it IMHO. It was an additional £5k/ year of tax free specifically if you invested in UK stocks
I do believe reorientating the ISAs towards S&S ISAs is a good move though, changing hearts and minds will be a challenge. It won’t change mindsets overnight