Also worth mentioning that with the 1.5% option, you’d only need a balance of £1667 to match the max interest paid on the 2.5% option
Balance Payable
Interest Rate
Annual Interest
Monthly Interest
£1,000.00
2.5%
£25.00
£2.08
£4,000.00
1.5%
£60.00
£5.00
£4,000.00 (Balance is £1,667.00)
1.5%
£25.00
£2.08
£10,000.00
1.0%
£100.00
£8.33
So if most of the month your acc is above £1667 you’re better off with the £4,000 option surely? I guess it comes down to each individuals cash flow. But let’s say 100% of the month you’re in the bracket of £1,000-£4,000 then I’d go for the £4k @1.5% option as your money is always earning interest at a market leading rate without you feeling like you’re missing out on a savings acc rate somewhere else.
I chose 1.5% on £4K, want it to pay off the Plus fee!
The 2.5% option is nice, but it’s such a small amount of money it’s not really worth it. Doesn’t compare to the Nationwide 3% on £2.5K! Mentioned that in the comments.
Out of interest (pardon the pun), would the interest rate then drop to zero for balances above these limits or would you earn a nominal amount, say 0.25%?
Similarly, the 1.5% option is matched by savings pots already available on Monzo or in an easy access account like Marcus. There’s absolutely nothing new or “Plus” about 1.5% up to £4k.
The Nationwide option, however, comes on their FlexPlus account which is £14 per month, so obviously it’s not comparable to Monzo’s offering as you already save quite a few pounds per month by default with the latter (which should in some way compensate for the lower rate/cap and anyway both can be used in tandem.)
My take was that anything over £1k I can put into a savings pot to continue making a bit of interest on it. I never have anything like £4k in my account, so it’s purely to maximise interest I’d potentially get.
Thanks to everyone who’s responded to deposit interest survey! We’re enjoying seeing all the responses come through we’ll share more soon!
To those of you who are on the Monzo Plus waitlist - good news! We launched with a small number of customers at first to make sure everything was working as it should be, and to make sure it’d be a great experience for everyone. We’re now in a position to start inviting a lot more of you throughout the week, so keep your eyes peeled for your invite
We’re really excited to give access to even more of you. Thanks for your patience!
Similarly, the 1.5% option is matched by savings pots already available on Monzo or in an easy access account like Marcus. There’s absolutely nothing new or “Plus” about 1.5% up to £4k.
You can’t put the money in a savings pot if its needed to cover expenses for the month. That’s the point of interest on your main account. That main balance is constantly in flux, pay goes in, mortgage/rent comes out, bills come out, etc. You can’t put this money in a savings account because its going to be spent before the end of the month.
By the way: make sure y’all keep your app updated. To get the invite and sign up to Monzo Plus, you’ll need to be on at least 2.49, which was released to the App Store about two weeks ago.
I understand the interest will be lower than Nationwide, but they pay half of the monthly fee in interest. The 2.5% option on Monzo would only be a third of the fee anyway
Would prefer not to have the faff of moving money into pots whenever it’s over £1K.
Also, the 1.5% interest rate is only if you lock the money away for a year - which I don’t want to do.
It depends on the individual, but this situation is exactly what easy access savings accounts exist for. Monzo already has them (Shawbrook, albeit a much lower 1.14%) and Marcus meets the rate and beats the cap.
I would argue that likely a majority of users don’t normally keep a balance between 1k and 4k (and if you need more than 1k to pay monthly bills, sounds like budgeting is needed.) Why not reward a plurality of Plus users with a universal high rate 2.5% up to 1k and those with above can put the rest into a savings account, getting the best of both worlds?
Great policy if you live at home but doesn’t really suit single people who travel with family or friends.
Great start! But does your customer base need family cover? Axa have better policies where anyone under the age on 18 is covered on the trip. (I take my sisters away)
Also what’s the cover for technology loss or damage? (If any)
Replied to the savings survey and was invited to Monzo Plus a few hours later!
I didn’t select any of the features, but would be interested to see the airport lounge feature come to fruition.
I chose the Lagoon Blue card, does anyone know if I create a joint account with my partner will my joint account card be the same colour as my plus card or the original Hot Coral? I chose the Lagoon Blue in the hope that I can easily distinguish between plus and joint cards.
we’ll share more soon!
