I honestly believe offering interest on pots would be a better and cheaper? way of getting people to switch to Monzo AND keep them there for the long-run.
A lot of people play the switching bonuses (guilty) by getting the money & switching to the next bank with a bonus & repeat.
There are so many people whose one gripe for not going full monzo is that there’s no interest - what is a switching bonus really going to do? Monzo will just become another one-stop-shop in a game of ‘Who can collect the most free money?”
Yes, I’m bitter. But also, from a growth and/or long-term ‘don’t just gain customers, KEEP them’ perspective - interest should be the priority over switching bonuses.
I’m actually surprised that folk are so hung up on interest, and that people aren’t more generally happy to forgo the cost of a lattè a month for the superb features and service.
I’m very happy with zero interest as the cost of running the account.
I think it’s the opportunity cost of the switching incentive that is the question here. In other words, could that money be used in a way to inventivise longer term use of Monzo than by paying joining fees which often encourage carpet bagging.
I previously thought that increasing interest for referrals would be good. Others objected to that on bait and switch grounds - but hopefully Monzo will be collecting some useful data to be able to make an evidence based decision. Or at least some more tests.
Forget interest savings (sorry Monzo, I love you) get yourself a Freetrade account and make serious money.
Or lose serious money!< generic voice-over artist >
Your capital is at risk. The value of your investment might go down as well as up< / generic voice-over artist >
Yes, this is also true.