Monzo Plus: Interest

Splitting off from the main Plus thread, please use this thread to discuss the interest feature of Monzo Plus :moneybag:



One thing I’m curious about is if the current savings climate had any effect on Monzo’s offer here. How likely is it that we’ll see the rate increase in the future if the landscape improves and the base rate starts going back up?

The biggest criticism seems to be that it’s impossible to use the interest as a way to offset the cost. So I’m curious if Monzo had actually wanted to offer a more compelling rate. I recall from one of the FAQs that it was mentioned the account geared towards budgeting would help users to save more than it would cost. How much of that saving are people expecting to come from the interest?

On a final note, whilst Marcus continues to have a higher rate, I’ll be continuing to transfer most of my money for saving to them, and I hope if a lot of people do similar that Monzo don’t think it means people don’t want the interest, and so scrap it in favour of something else. I love that there is interest and I want it to stay, and I feel better about leaving additional money in my account now without feeling like I’m losing out.


Makes all the savings pots useless.

I closed all mine and turned them into regular pots as it was double interest and instant withdrawal.


Makes sense. Whether pennies or not!


They would have been useful after hitting the £2k limit!


Oh is there a 2k limit? :flushed: Is that a pot limit or total limit across balance and all pots? :grimacing:

You only earn interest on up to £2k in account balances across all regular pots and your account. Anything after £2000 won’t earn interest.


Didn’t you read the terms and conditions?


Well that’s sh*t.

Thankfully I just need to switch one pot back.

Ain’t nobody got time for dat…

Rookie mistake :see_no_evil:


I think if there was no limit, we’d have seen a lot less criticism in the main monzo plus thread! :sweat_smile:


That would be a Slipdog? Or…

Interest is always welcome but you wouldn’t get plus for the interest as it simply doesn’t make financial sense. It’s an extra nicety for another reason you would get plus since you can get better rates at Marcus and NS&I for two examples without us costing you more than you’d earn in interest.

I’m not sure if there’s a great deal else to say about it?


I bet that is exactly what Monzo wanted - improve the cash in the bank, and not the cash in 3rd parties banks :+1:


Never really held £2k plus in Monzo, other than payday, even along the low interest pots from the third parties, so agree that interest alone is not a crowd puller as not many would maintain the £2k to maximise this aspect.

I get 1.15% at Marcus, currently, so that’s where my Pots sit.


Maybe it could be that in the future, Monzo Plus customers get preferential rates in the easy access savings pots too? This would be interesting to see - whether this is paid by Monzo or the providers

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Couldn’t get much better than 1% anywhere now tbh. Marcus is only 1.05%

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It’s a great rate by today’s standards, there’s no denying. I think the issue people have with it, is that the feature can’t be used by itself to offset the cost of the subscription.

I’m personally happy with it. If I didn’t have Marcus, with my bonus, the first £2000 of my savings would absolutely stay with Monzo. I would love for it to be able to offset the entire cost, or even earn me money despite the cost, but some of the other features have enough value to me that they’re worth paying a small monthly fee for.

I blame the current state of the market. It’s a good offering, and something I do want, I just have little need for it. Hopefully the rate improves as the market does, or the limit gets raised so I can make better use of it.


Monzo isn’t 1%. You need to factor in the cost of plus, this makes it a net negative interest rate.

1.05% at Marcus is a lot more than what monzo is offering as theirs zero cost. NS&I also offer 1% or 1.15% at no cost and no £2k cap.

The issue really is you can’t really consider it an interest bearing feature. You make zero net interest from this benefit of plus. All it does is slightly offset the cost of the paid subscription, and that’s only if you really max it out at £2k all year round.

This in my mind only functions as a partial cost offsetting feature of plus not an actual benefit in its self. In either case monzo gains from the higher balances in accounts as people try to reduce the costs associated with plus hoping to get a net gain from the other plus features.



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