Making Monzo Better: The Big List


#163

Starling give 0.5% AER on up to £2000, which is £10 a year if the balance is always >£2000.

In comparison Nationwide give 5% for the first year on up to £2500, which is £125.


#164

Interest on savings pots/accounts rather than interest on account balance seems like the better idea. My balance fluctuates far too much for account balance interest to really be worth very much. Even if it was 5%.


(Matthew Farrington ) #165

That £10 is more then I’m getting using monzo right now though let’s be honest. And starling give you interest on your overall balance with goals balance included in the interest.


#166

of course they are included, as goals are just compartments of the account and not a separate account with it’s own number


(Matthew Farrington ) #167

It’s why I believe that monzo should pay interest as a whole account rather then just a savings pot which would make more sense.


#168

but the way Monzo excludes any Pot balances from overdraft charges indicates that they regard them as not being part of the account but something separate, in which case they should specifically confirm the FSCS covers all amounts at Monzo and even consider separate account numbers for Pots if they are not being treated as part of the account!?


(Emma (still not the app)) #169

FSCS covers all savings in an institution. Apart from that it’s all one account even if some is separated into pots


#170

I know, but it would be reassuring for new customers less knowledgable about banking :woman_shrugging:


(Emma (still not the app)) #171

I don’t see any reason for confusion


( related to Monzo CEO, Investor in Monzo ) #172

in which case they should specifically confirm the FSCS covers all amounts at Monzo

It is clearly specifically stated

" Is my money safe with Monzo?
Your money is fully protected by the Financial Services Compensation Scheme (FSCS), meaning that all your money up to £85,000 is guaranteed by the British Government. "

its mentioned prominently on the website and in the FAQs page on the Monzo website and in app under FSCS protection


#173

thanks Ian…I tend not to read FAQ unless I need a cure for insomnia :wink:


(Mark) #174

Does anyone know if there are any app updates, fixes or new features due for release this week?


#175

Does anyone know if there are any app updates, fixes or new features due for release next week?


(Danny) #176

That is basically a marketing ploy, they’re ‘spending’ up to £125 to acquire you as a customer in the hope you’ll stay for many years after out of apathy.

Base rate is 0.5%, you shouldn’t expect anything more than that. For me I’d far rather Monzo just kept the £10 or so a year and put it towards making the product even better!

*edited typo


(Dan) #177

It’s actually at 0.5% at the moment. So they’re just passing through an interest received on a deposit with the Bank of England.


(Danny) #178

Yeh sorry, typo!


(Jack) #180

We're halfway through The Big List! An update
#181

Uggh, not Shawbrook :weary:. They recently advertised an identical ISA to my existing one but with a higher interest rate. Seems like they prey on customers’ apathy.

I’d rather someone like Ford Money who guarantee interest rates for existing customers won’t be lower.


(Simon Porter) #182

Why does this have to be from one provider? Surely a pot can be from any savings provider like Moneyfarm, Nutmeg.


(Tony, Secret Lemonade Drinker) #183

I would imagine the hard part is that they want the process of setting up a new “interest bearing savings pot” to be as simple as possible, so all done inside the Monzo app and with as little “friction” as possible, much like the pot creation is now. This means you need to get the provider of the savings account/pot to collaborate and open up APIs etc, so all the heavy lifting (KYC checks etc) can be done in the background and the user doesn’t get bothered by all that.

In the case of Shawbrook, as they were/are part of the Marketplace beta, a lot of the leg work has already been done, I expect, so it’s no doubt simpler to get them to provide the first iteration. No doubt Monzo will have reached out to other providers, but they have some work to do to catch up.

That’s my understanding anyway! Hope that makes sense.