Monzo savings

It’s really great that Monzo is adding features like savings and overdrafts, and I can’t speak about the later, but the savings rates are really disappointing.

Why would anyone save any amount of money at 1.55% which is lower than CPI and not in line with other savings providers for 12 month fixed rate, which is around 2% typically.

There are so many reasons to switch to primarily using Monzo but every time one gets ticked off like savings has for me today it’s mediocre. I have a Santander 123 account with a in-credit savings rate of 1.5% up to £20,000, cash back on direct debits/standing orders from bills and optional regular savers accounts etc…

I would happily switch to Monzo and keep Santander as my backup, but currently it would cost me a fair amount of money in cash back and savings interest so I stay as I am.

Does anyone else feel like Monzo aren’t really playing their A game when it comes to features, and slowly the high street banks are catching up with the thing Monzo hooked us all with which is the online banking apps and website.

Just to be clear, I really like Monzo, and want it to succeed but I need the bank to offer basic features I need.

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What is the £ difference between what you recieve in interest each month now vs the current Monzo offering, out of interest?


To help monzo succeed.


They’re not. Or maybe to be more accurate, they might be playing they’re A game and it’s just not good enough. This is a worry for me.

Essentially everything is half done :confused: or what they offer you can get elsewhere (and more) for the same benefits or better. but people have been saying this since last year since the big banks technical infrastructure was being improved, now they’ve all almost caught up.

For savings specifically, you’ll always find people happy to put their money in an account that’s beside their current account, even if its not financially beneficial for them. Thats who these accounts target, most banks do this, Monzo at least offer accounts with at least 1% interest. Many banks offer far less on savings accounts.

But you’re not wrong. The offerings from Monzo are a little disappointing, not the worst, but not great either. Keep in mind, as they don’t offer these themselves, they’re taking a cut from a higher interest rate from the offering bank (with a few incentives thrown in for you).

But Monzo seem to have just stalled in their tracks, this worries me, and I wonder if they have the money and man power to keep up anymore. They were so quick to throw out features and then leave them to stagnate they never considered the negative effect a half baked feature would have when the big banks would take their time and throw it out fully functional.


The way the savings accounts are provided (marketplace model) Monzo will not be in a position to beat the specialist savings banks that typically top the comparison tables.

But at least when it comes to the easy access cash ISA they still provide better rates than almost all the main banks (the main current account providers). See here for confirmation:

Edit: Not intended as a direct reply to @Eden. Was supposed to be a general reply to the thread.


I really don’t understand how people can expect a start up bank to beat legacy banks on every single thing they offer but having a competitive edge can build the bank as a real con-tester for the future.


Monzo have made a good move in regards to savings in this. They’re decent. People should call it for what it is. Not the best, but not the worst. For savings that you can have along side your current account, there good.

The problem is Monzo has its key features that used to be ahead of the other banks, but they’ve not kept up with completing those features or improving them. that’s the issue really.


good boy.

Like you I have this account. But it’s a stand-out account in the sense that you quote, which no other bank is even attempting to tackle. Likewise, few banks are competing with Nationwide on their value- added products.

Comparing Santander with Monzo really doesn’t work.

You’re asking, if I may, for ‘basic features’. Interest at 1.5% isn’t basic (+ the £5 monthly fee incidentally). But you’ve got visibility and energy in the shape of Monzo’s offering which for most of the big banks is alien.

Sure, there are a lot of moving parts as far as the roadmap is concerned. But I’d rather that than no sense of development at all.

It sure isn’t the finished article (but then, who wants the finished article? :face_with_raised_eyebrow:).


I guess the issue is I run my entire flats bills through the 123 account so it saves us all money and it’s significant.

And it’s set up perfectly for that :slightly_smiling_face:

The old banks have 100’s of products they can use to bump up the rate elsewhere in their massive portfolios to make profits, so getting a higher then 1% rate is good, and as for the other banks catching up, really? I use NatWest for our joint account, and it’s a mediocre experience compared to Monzo, even First Direct who I previously banked with, isn’t on the same level.


3% on telecomms bill (EE+Hyperoptic) £1.29
2% on electricity bill (Ecotricity) £0.93
1% on council tax £1.65
1% on water bill £0.37
= £4.24 a month approximately which mostly offsets the cost of the account fee £5.

Then 1.5% interest on the 123 balance which is significant and a higher rate on the 123 saver.

It’s all pretty crappy because there are no worth while interest rates these days, but it’s enough to justify it for now. I have more luck on the NS&I bonds tbh.

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Personally I think in order to get good interest rates you have to take an element of risk into play.
I only have high interest rates as I have bonds that have just been renewed + I bought a special issuance(@3%).(I also have high yielding senior secured corporate bonds through WiseAlpha(Packaged in an IFSA).
I don’t not expect Monzo to be able to offer these yet, they have to be profitable in order to to be able to pay high interest rates. Any high interest rates(the highest being corporate bonds) include a high level of risk that many people who find intolerable for good reason(High street slow down etc). Low risk high interest yielding savings account will only come about when interest rates are increased, which they never will with household debt so high because wages are so low

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You would be better off downgrading to the 123 Lite or the similar Natwest account (who pay 2% on all bills + are offering £175 cash back for switching) and keeping your savings in Marcus…

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I am considering options at the moment, I stuck with Santander because the online banking didn’t have the requirement to use the stupid type the ‘x, y and z’ characters from your password.

I don’t know how it is legal for them to do this given how hard it is for people with Dyslexia to do these, however recently Santander locked my account out and I now have to use this stupid new system like all the other banks to login which I find impossible.

Also the interest on the 123 Account is well worth it

Have to disagree with you there. You can get the same 1.5% interest on your savings elsewhere (e.g. Marcus) or even with other Santader accounts (e.g. Santander eISA) if you don’t want to open a savings account elsewhere. In addition, you can get exactly the same cashback with 123 Lite as you can for the main 123 (saving yourself £48/year in fees).


It seems like the benefit is just the 1.5% interest with a high cap, as with the cashback and your current spending you are at best breaking even?

It depends how much you value convinience over interest, but you can do much better.
Personal setup was:

  • Salary into Monzo
  • First Direct account (with a 5% regular saver)
  • Nationwide FlexDirect (for the 12 months 5% balance on £2500 in current account)
  • Monzo with a 1.14% easy access ISA (the .36% interest loss of not using Marcus is worth it for the visibility)
  • Standing order to move £1000 between NW and FD every month to meet their minimum pay ins
  • Vanguard S&S ISA for long term regular saving

As the 12 months has ran out for me on NW I’m taking that out of the mix, and have found that actually the convinience of seeing the interest earning savings pot in Monzo is worth the slightly lower rate.

As savings grow I’ll reassess if this is the best places to have savings, but is the best in terms of % interest and convinience for me atm.

It doesn’t seem to me like the 123 account has any real advantage for you? You can beat the interest elsewhere (non-monzo-only option similar to above) or beat the convinience with slightly lower interest (monzo-only).

You might like: Bank Account Savings: Find out how to maximise your savings

Not to say I don’t hope Monzo comes out with more partnerships, that would be great, but I see them as my primary account out of multiple, not single account.

I am thinking about your points, Metro bank has a 2% fixed for a year which looks good, I could transfer the balance of my Santander there, and switch to Monzo.

Will probably always keep the Santander account for my self employed work as I have the account and sort code memorised and it’s on all my invoices.

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Barclays do something similar in that the will pay you £7 for two direct debits for £3.50/m so you make £3.50/m, plus cash back at retailers etc.

As for your interest, as @NeilM made a very correct point, no risk no reward. People have all these systems to make on average maybe 2.5% (I believe its around this once you count for money in/out, regular savers etc.), but you can make that money just putting is in a an ETF or similar with a higher allocation of bonds etc. without the account juggling.

Savings accounts within banks are basically just convenience accounts to separate money. They’re very low interest bearing pots, and have been for a long time.

Keep in mind if you need anything more, cheques, cash, international payments etc. Monzo doesn’t do this, or they do it at a cost to you.

Monzo is a very basic bank still, make sure it actually fits your needs before switching.

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