# Our all-new Savings Pot is here š

Whatās this in Labs??

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Ah, just seen the other topic. Move along

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Monzo are on an absolute tear right now. Things you love to see

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Sorry to go back to this @andys but Iām pretty confused about this and usually get this stuff.

Scenario 1 doesnāt seem to suggest a benefit/boost vs the advertised rates, and scenario 2 seems unrealistic as itās not generally how people use their bank accounts - to maintain a Ā£0 balance, and also loose out on the ability to use bill pots/virtual cards etc.

As an illustration of why Iām confused, based on what Iām reading there is an inequality between paying premium customers by about Ā£60 a year (assuming 1.5% and 3% rates are maintained for 12 months).

Scenario 1 youād get 1.5% on Ā£2000 = Ā£30 + 3% on Ā£5000 = Ā£150 (total Ā£180)
Scenario 2 youād get 4.5% on Ā£2000 = Ā£90 + 3% on Ā£5000 = Ā£150 (total Ā£240)

Am I understanding this right? If so, I think it needs to be looked at again. I would suggest 4.5% should be the rate for the first Ā£2000 across account/regular pots & instant saver with 3% on anything above that amount - meaning it doesnāt matter where the money is, everyone gets the same. Or 3% for premium so it again makes no odds, otherwise it seems like youāre penalised for having the money in a different place when itās all counting to the same limit anywayā¦

Incidentally, Iāve not seen anything in the instant saver or premium T&Cs that explain how this works. The Premium savings summary is dated 7th Oct 2021, and the description specifically says it doesnāt include savings pots. So it all needs to be documented and made clear at any rate.

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Easier money movements

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The problem isnāt the product, the problem is the way that pots have been conceived.

I think taking a step back and making some adjustments would reap rewards:

• Instant Access Savings needs its own card up top in Overview (the new home screen) alongside Flex and the Current account (give it a name plsthx).
• When it has its place at the top of the hierarchy, it then makes sense for there to be pots that subdivide the savings account, too. There would be two sets: current account pots (which should share the interest rate and terms for the current account) and savings accounts pots (which share the interest rate and terms for the instant access savings account).
• Indeed, marketplace savings pots accounts could even have their own cards and potentially pots, too. Just change the āMonzoā wordmark to OakNorth or whatever. With hindsight, it was probably a mistake to ever label these as pots.

That would make things simpler and more logical, I think.

I think thereās more that can be done around goals and around the design, but thatās the crux of it, I think.

Basically, the new savings account is in tension with the design here. It can be fudged by offering multiple savings pots, but I think this is a better first principles solution.

(Cc @leepethers, @emmag and @andys)

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I love this. Perfect.

Also, as weāre talking about pots/division of money, and we now have another reason to keep money out of the main current account and in a potā¦

I implore Monzo to stop penalising customers who have an overall positive balance with overdraft charges if their current account balance is negative. If I have Ā£500 in a pot and negative Ā£100 in my current account, I am literally not borrowing any money and not in any way indebted to Monzo.

To incentivise pot use (bills pots, locked pots, interest and savings pots, etc.) whilst simultaneously penalising someone who has an overall positive balance is just awful.

I will never stop asking for this because it is an inherently terrible system.

Second edit to sayā¦ maybe the idea of an overdraft/credit pot which Iāve seen floated before would help this? That way you could have your total balance at the top level, with one negative overdraft pot, but so long as your top level total was positive, you wouldnāt be charged anything.

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This is such a brilliant announcement, thank you to everyone who worked on it. I canāt wait to get the roll out

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Totally. I think that has to be the logical conclusion.

Iām imagining the account ācardsā on the new home screen being configurable to show the total amount in that account (so for the current account thatās the main account plus pots) or a subdivision (e g. the main account minus pots, or a specific pot).

Writing that was quite torturous - thereās no name for the current account excluding pots. It would be helpful to see it as a default spending pot. So you get the current account, then if you add a pot you see two things - a spending pot (the main account) that your cards and direct debits are linked to, then the pot youāve just created.

(Iām tired so that might not be expressed as simply as Iād otherwise have hoped).

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Okay so on the face of it, I think this is a fantastic feature and Iām glad that Monzo have finally moved into this space.

But - I really think that this is overstepping the mark of what a bank should be:

You shouldnāt be telling us how we should be managing our money. Building in these restrictions has created something thatās vastly at odds with how many Monzo customers use their accounts and manage the money across their balance and pots. I really hope you take the feedback thatās been given in this discussion on board before launching fully, because you can already see customers trying to fit a square peg into a round hole in order to grab the interest.

Really and truly, you should put the brakes on the current iteration of this and just handle this the same way you handle interest on Plus and Premium accounts. It shouldnāt matter whether the money is in your main balance or a pot - interest should be paid anyway.

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Itās in labs now

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Two things on this. I agree and disagree, let me explain.

I think the decision on not supporting bills etc is a valid one, for the reasons given. If you think to any other savings account out there none (that I know) of offer this because their prime directive is for you to put savings into it. So In this regard I donāt think Monzo are telling anyone what to do with money, theyāre simply providing a service.

But, as I noted above I think the concept of pots is different to what this is. Or at least I think it is. And this is where I agree. Itās not the same as other pots and thatās confusing.

I think this is meant to be a savings account. Not a pot, not a bills service but a savings account. So Iām in agreement with @Peter_G , it really should be sitting with the accounts as thatās what it is.

Whether you can then create sub pots from it, Iām not too sure but lumping it in with other touchable or service providing pots is for me confusing.

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This is exactly how I use my Chase Savings accounts.

All direct debits that donāt fall on my payday are assigned to a savings account.

My energy payments are from a Chase Savings Pot. That way I hold the reserves, not them.

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This all seems a bit of a mess. The implementation is half finished with littered references to scheduled withdrawals in the UI.

Whatās more, you CAN actually use IFTTT to schedule a withdrawal from this pot, Iāve just tried it based on time and date. Iām theory then one could use the existing options to say every time I spend at retailer xyz and create it as a spending pot by the back door

I think youāre making it hard on yourselves by this strange decision. Ditch these artificial barriers, or fix the app and make them hard restrictions.

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I donāt see the requirement to follow what others are doing. Iād say thereās an opportunity to do something different here.

I kind of get the feeling that this is over-engineering a very simple problem. Paying the interest on the account + pot balance is much simpler.

Moving into the land of speculation, I wonder if the reasons weāve been given donāt paint the full picture.

Iāve got a suspicion that this decision was made so that Monzo would end up paying 3% interest on a smaller amount of cash overall vs paying the interest on the balance. I imagine if they went down the interest on balance route, the amount of interest theyād end up paying across all accounts would be much higher, so theyād balance this out by offering a lower rate. It also makes me wonder if they can change path at this point now theyāve offered 3%ā¦ purely speculation though.

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Oh for sure. I donāt disagree. Was just comparing to others (with the exception of chase)

Thatās about the size of it. See what Kroo and Chase are doing, and do the same but different.

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Iām with you on the āmessā bit, at face value. But the statement:

āā¦to begin with.ā induces confidence in the launching of a product for the masses while holding back on the potentially-planned features. Which may - or may not- come later. Letās see!

Test, test, testā¦

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Kroo pay 3.03% on their current account, but donāt offer a pots facility

Chase offer 0% on current account (atm), though strangely allow DDs and SOs on their 3% savings accounts (each with own account number).

This is why Chase wins for me, atm.

Santander down to a quid now, but never allowed scheduled regular transfers anyway, only individual one-off payments.

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Oh I agree itāll get resolved, but hide the mess from the public would be good

It just feels like it was rushed out with a āweāll fix that laterā attitude. Nothing against iteration, but this isnāt my idea of iteration by leaving things in that you know donāt work (especially when youāre rolling it out to all customers and not just testing it in labs)

I donāt personally mind if itās simply a saving account with no extra functionality in the end. I just donāt like broken things in a live product

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So I have a slightly convoluted way of using monzo which might interest you (and any developers reading):

As a freelancer, I have a Monzo business account primarily because every time Iām paid, it chops 20% off for tax.

I then transfer that 20% over to my personal account to a savings pot with a high interest rate. The tax I will have to pay thus accumulates interest until itās needed.

But recently Iāve started transferring the total balance of my business account in the same way, so interest can be gained on that too. The instant access thing therefore really appeals, because whenever I have to pay myself from my business pot, I donāt have to wait a whole day for it to land in my current account.

The new savings pot is a great idea in theory, but it still makes no sense for me to have separate savings pots with less interest, other than the fact I can visually separate the different piles of money I have for different purposes. I think sub pots is the answer.

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