Option to convert a regular pot to savings pot

Forgive me if this has already been suggested, but I searched and couldn’t find anything.

Especially with new announcement about earning interest in savings pots with a minimum of £10, if would be great to be able to convert a regular pot into a savings pot without having to manually close one and open another with the same value.

It must be a Sam thing :grin:

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:rofl:

This is probably only relevant as a one-time activity for people who now want to take advantage of the £10 floor on the savings pots but previously didn’t have enough in a given pot to have a savings pot.

However, I would like the ability to shift funds around between pots/providers. This route widens the scope a little and would be useful on a long-term basis. I do accept that Monzo may not want to make it so easy to switch providers though; unless somebody has enough money to need to split their risk between providers, the provider with the top interest rate will nearly always grab the entire Monzo pot fund!

I never understand this view, and it’s not a personal dig at you @iratefox so please don’t take it as that.

As far as I understand, monzo make a commission of 0.2% (or something like) on all savings pots by third party suppliers so it makes no difference if the consumer wants to move to a better rate. Unless, of course, I’m missing something and different suppliers give monzo different rates but from what I remember it was the same across the board.

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I think it’s more likely to do with the corporate relationships they have and what level of risk they take with that - if it was completely frictionless then there’s a risk new providers would hold off joining the marketplace; they could be flooded with too much money, or get nothing at all because all funds would be diverted immediately to the top-paying provider.

From a consumer point of view, I agree there’s no difference and Monzo are still making the same money - it’s just the usefulness of the marketplace to providers that comes into question.

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I suppose there might also be a liquidity question on the money held under the Monzo banking licence (as opposed to the third parties’). If Monzo makes it too easy for money to go elsewhere, then might they end up with balance sheet issues (not enough money for overdrafts, loans etc; not enough to meet regulatory requirements etc)?

They’ve already made it easy by allowing savings accounts with only a £10 deposit, but I see what you’re saying :slightly_smiling_face:

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Yeah, there is that. I was just wondering aloud if that was the reason - I’m all for making savings pots totally easy access / no minimums, as long as that’s not going to cause problems down the line!

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