Minimum balance on savings pots

Hi

Is there any reason behind the high minimum opening amount on a savings pot with the marketplace providers? Would it not be beneficial for genuine savers is there was a very low opening figure? To help them start saving.

Monzo need to keep a level of capital ‘in house’ in order to be able lend on overdrafts etc. If all money went into savings pots with a low threashold, because they’re held elsewehere I suspect that this would kill all Monzo lending dead in one go.

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Precisely why I opened a Marcus account :smiley:

But I think it’s to do with the costs Monzo have for those accounts, so they are trying to be profitable with them (I’m not 100% on this…)

More savings integrations are on their way and I believe Monzo Plus will open up even more possibilities.

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So you can pay a fee to start saving at a lower rate? :thinking:

Monzo Plus is a bit of a negative for me. Early days though yet.

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Amongst other things but let’s not turn this into a Monzo Plus discussion :slight_smile:

If you haven’t read the latest update from them, including the future plans for Monzo Plus, jump over to that topic and take a look :sunglasses:

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My understanding is that a lot of savings providers have a minimum balance for higher interest rates, similarly with things like fixed length terms. Marcus is about the only account that doesn’t and I think partially because there loaded with cash already so can do so.

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