Monzo Current Account Interest?

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Hey all,

I got my Monzo Current Account this week. I’m just wondering what the interest rate on the account is? if any?

Unless i’m missing the obvious I don’t think this was ever mentioned anywhere. Given what interest rates are these days I guess it doesn’t make much difference, it would just be nice to know :slight_smile:

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Thank you for your question.
There is currently no interest on these accounts.
I am unaware of any plans to introduce interest on these accounts.

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Thanks for the prompt reply @anon44204028

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For what it’s worth, Monzo will be introducing overdrafts in the future. When this happens they may want to attract more deposits. So, although there are no plans to offer current account interest, it doesn’t necessarily mean it won’t happen around the time overdrafts are offered.

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Whilst there aren’t any plans to offer interest on current accounts, Marketplace will allow integration with other services that may offer interest rates for savings etc.

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I know this may be a bit premature, but is there a plan in the future to give us interest on our current account balances, or at the very least, interest on the pots?

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I could be wrong, but I wouldn’t have thought so. However, with the plans for the Marketplace, Monzo will make it really easy to move money to an interest paying account. All managed from within Monzo.

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Why doesn’t Monzo offer interest on its current accounts?

Starling does…
https://www.starlingbank.com/legal/account/pricing/

Wondering…just signed up for Monzo but would (obviously) prefer a bank that gives interest.
My current bricks-and-mortar bank does, too…

Thanks in advance for your reply,
Jennifer

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Our current view is that the interest you currently get on most current accounts is close to worthless — at least for me, it’s literally pennies occasionally. We want to focus on helping you to connect with providers where you can actually grow your money, rather than spend time on interest that (we think at the moment) is not that important for most people. But would love to hear your thoughts!

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Every little bit helps, and if there are two banks that have basically the same offer, then it would be silly not to go with one that doesn’t give you that extra bit, no? (NB: The 5% interest I get on my existing current account amounts to more than “pennies”!)

When you say connections with “providers where you can actually grow your money” where can I find out more about those Monzo offerings?

If the Coin Jars could have money moved out easily to an investment vehicle or savings account of our choosing, then that would be a big plus - is that possible?

Cheers,
Jennifer

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See the blog post relating to the above: https://monzo.com/blog/2018/03/01/marketplace-beta/
Regarding other accounts with interest. I agree there are a limited few with good rates but majority have very poor % that’s not worth it. Hopefully that will change as rates go up as hinted above. Any with very low % basically just have it as another check box on a list rather than to provide any benefit. You’re better off looking at other saving products. Or having a current account that pays high interest and use it for savings, then use Monzo for the remainder.

Regarding your point about coin jar. That’s ultimately the end goal that Monzo want to achieve yes. Seemless integration with other products that appear as pots etc within the Monzo app and work as if they are part of it.

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Some people have recommended accumulation units.

:unamused:

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I would love to use my coin jar as savings with interest.

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I would prefer for the coin jar to be more locked away savings rather than something that can be dipped in and out of too easily, something with more than a token rate of interest because it can be easily accessed on a daily basis, so you have to make a little bit of effort to access your savings that have been quite easy to accumulate through your daily spending

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Thanks, Jack x

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Like Jennifer says every bit of interest helps in my opinion whether its pennies or pounds that it amounts to.

I’d rather go for an account where it gives me money than not. I get 3% on my balance upto a certain amount. If you ask me these days the interest all helps as in my opinion we are starting to live from month to month and not able to just put salaries away and live off last months wages if you understand, so interest on current accounts is a must for some people. I had an account that paid no interest for years, other bonuses were only if i upgraded account and were useless to me anyway. I wasn’t prepared to upgrade and pay the bank money, i always seemed to be paying them anyway due to overdraft charges. If you ever decide to add interest on your current account, let me know. Also with Pots, not everyone has the ability to save money if they live month to month.

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