Yeah, I get what you and @joedmitchell are saying, and it makes sense.
The flip side of the argument would be “How many customers would the provider lose (or have to pay more to), if they could open a free Monzo account and get a better rate?”
That’s why I think the provider “splitting” the 0.2% is a potential scenario (so the customer is only 0.1% short, and probably not worth bothering about).
Again, all pie in the sky, like you said 
Really looking forward to seeing the beginning of the marketplace 
Everything is coming together nicely…
https://giphy.com/gifs/1stLookTV-bananas-johnny-1st-look-3riOvQ76NWafUohSag
That might be true but the issue with going with establised providers is that they exisiting product which will be compared directly with what they are offering through Monzo
Whether it is a unique deal or not they are still all savings account
For comparisons sake, I believe this is monzos direct competition to this product
HL offer a very similar service, so it will be good to see how they both fair this this area and how they might differentiate their products from each other.
£1000 minimum to open though
Yes. It’ll be interesting to see the comparison and how the differentiate and how Monzo plan to show offers e.g. if itll be a blanket minimum deposit, or varying based on company, etc.
But I believe HL are the only ones I know offering a very similar service to what this looks like it will be.
Yay, the 1% non-ISA savings pot is back (doesn’t look like this was advertised in the article). I’ve been waiting months for this! Opened a couple for different purposes 
I think it’s good to add that a lot of people are happy to accept a slightly lower-than-the-best rate for the convenience of controlling their finances inside of Monzo. I’ve tried Marcus and others and the UX is simply not on parr and makes me feel like I can’t control/access my money as easily - so much so I’m willing to sacrifice a couple of point-percents and stick to Monzo.
£500 starting amount and no ease of access are deal breakers for some though. Since the main advantage of saving with Monzo is it’s convenience, having a high entry level and no easy access to your money are self-defeating.
I think an option for £1 starting, easy access and anything north of 1.3% (considering Monzo’s cut) would make many, myself included, jump ship from Marcus.
It’s common for savings accounts with higher rates have a minimum deposit and a one day wait to process (or longer). I think Marcus is the only one that doesn’t.
Unfortunately that means without Marcus as an option it’s not likely to have many offers with instant access and £1 minimum with high interest.
Monzo might get some benefits over going direct we’ll see, but who apart from Goldman Sachs offer 1.35% and instant access?
Will be interesting to see how banks differentiate their offerings, as surely if they’re mostly the same then customers will all just lump on the best interest rates, considering how easy it is to switch.
Does anyone know how FSCS protectionworks with this marketplace? I.e. if someone had >85k invested across multiple savings pots, are they all protected by each bank’s share? Or just up to 85k with Monzo? (I wish this was a problem for me…)
Savings is an odd one. From my perspective at least the bank you have your current account with isn’t dependant a lot on savings offers it’s more dependant on current account features.
Good savings accounts tend to be offered from what I can see by banks who mainly specialise in savings. So there’s not a lot of jumping ship.
Monzo offering savings from banks who specialise in savings may make for quite a good product, perhaps it will even change the 0.2% offering most banks five for instant saving accounts.
You’re essentially saying “you won’t find a better deal, except in that one case that you will.”
Why shouldn’t Monzo provide some incentive to people with savings at Marcus by offering something that approaches what they do? I’m not saying it needs to be as good, just comparable. I would consider jumping for say 1.25% if it had instant access and no minimum savings amount. Maybe even 1.20% or lower.
In fact, plenty of people are happy to just sit and take 0.5% at Starling, so it shows many are content to accept low rates if their money is accessible and they don’t need to put aside larger amounts at the beginning.
All I mean to say is at the moment it might not be possible for monzo to get an offer that’s a good rate and instant access. Marcus are the only ones that do it as far as I’m aware, and they have the cash to do so, and you can only get it direct. That might change in the future, but it might not happen just now with these offerings.
People are inherently lazy, so like you said essentially if it’s just there people are more likely to use it even if the rates aren’t the highest.
Monzo will likely be offering some of the best savings rates in this kind of area where your savings and current account are in one place.
Surely this can only help Monzo be a more sustainable business, I’m please that other banks are coming to Monzo as they are seeing us as a real player now.
I still don’t get why people make the suggestion that Monzo shouldnt get .2%, they are a business and providing a service. When you pop funds into a saving accounts, Monzo make it absolutely clear what rate they will get and what rate you will. They are being absolutely transparent.
I know if you go direct you may get a better rate, but as time as told, people are willing to drop that .2% to keep there funds all together.
Source for this?
£300 per month with First Direct
£250 per month with Nationwide
£200 per month with Santander, though their latest offering is 3% now, not 5% any more
Cannot get as excited over that, sorry.
I have a 1.44% flexible ISA with Tesco that I can put up to £20,000 in (pipe dream) and instant access.
I agree, but I’m trying to suggest that many prefer ease of access and no amount gateways over higher interest rates, just as long as the rate isn’t 0.
Starling offer this service, at 0.5%, by default on all accounts. Obviously Monzo is unlikely to follow suit, but an easy access savings pot that doesn’t require £500 to start would be, I’d imagine, a popular choice even with a much lower interest rate than Marcus offers.
While something is better than nothing, I suppose, it’s still only pence for most people.
Sometimes, I think we consider the odd .1%, .2% too much when, in real terms, it is not going to make much difference to the lifestyle of most customers.
For example, what I get from Starling would not buy a second class stamp, let alone make a big difference to my balance.
I think really, it is all about tempting people in to the savings culture, and a habit, hence why I think some £1 minimum deposit savings accounts are good for some (to get going), and £500 good for others. Above £500 will be steep for most people, I think, in the current climate.
Upon initially reading this I was really excited and the outcomes of what Monzo are suggesting is exactly what I want (get interest on my money within Monzo, see my pension, investments etc).
However, I’m concerned that the “marketplace” mentioned is going to basically turn into comparethemarket.com where we have to start working out what we want etc. What I was hoping and liking about Monzo is I trusted them to do it right so there is only one option for an ISA, investment etc and Monzo do the best they can to make it best for the customer (no high initial rates etc).
Ideally I wanted Monzo to actually offer all the banking things I want, not just partner with other banks and offer their products through Monzo - especially not turning into a marketplace where I then need to start investing my time researching which option I want etc.
Furthermore, I would be really annoyed if I’m the coming weeks or months Monzo offer a instant cash ISA with higher than 1.14% as I’ve just opened that one and can only open one cash ISA a year!
"Furthermore, I would be really annoyed if I’m the coming weeks or months Monzo offer a instant cash ISA with higher than 1.14% as I’ve just opened that one and can only open one cash ISA a year! "
As far as I’m aware the Oaknorth is instant access so I would assume it can be transferred to another ISA provider without penalty ( apart from the withdrawal time loss of interest ? )