Aren’t you allowed to open only one cash ISA per year? So now I’ve opened one I can’t open another till next April?
yes one cash ISA / year , but you can usually , in most cases, transfer that years ISA to another provider unless its locked in by a time limit when you open the account
2 Likes
But I won’t be able to open the new ISA to transfer to, so that hardly matters…
2 Likes
Hopefully it will be the case that Monzo have a variety of providers that are easily accesible, then if your locked into a fixed term saving accounts, towards the end of the term, Monzo could send you a notification to say, here’s a better rate for your savings you have, want us to transfer, click a button and you have nothing to worry about.
1 Like
no its dealt with by the ISA providers a transfer out of the old and in to the new , as long as the new ISA provider accepts transfers in , initiated by you as far as I’m aware
1 Like
That’s all good and well, and I expect that will be the case.
But I still don’t want there to be a bunch of options to start with where I have to start researching again. That’s the idea Monzo removes that research with providing a couple of core products that work well. Just like bulb energy only have one tariff, can’t change, never need to switch, they just do what’s best for you. Wanted the same with Monzo with basically 2 products.
Banking actually isn’t that complicated, it’s just the big banks with 100 products makes it hard to know what to do, especially with so many investment options. It needs to be simplified to help the majority of people who don’t know lots about finance. And a marketplace with loads of providers I don’t think is that!
The problem with this is people have different needs. Monzo could choose a 1 year 1.5% savings account, but that’s not useful for people who want instant access or people who want a higher rate and to put there money away for longer.
It will all be down to how Monzo present the options. A market place which a number of options isnt hard. Mow much interest do you want? And how long do you want it locked away for? These aren’t hard choices.
2 Likes
Oh, so you can open multiple cash ISAs in one year if you do an “open and move all your money from the one you opened before”?
So unclear when reading about it!
It may be the case, when you go to open a saving account, you are a prompted with some questions, how long do you intend to save for? do you want easy access? how much do you want to save? how much do you have already?
Answer 4 questions and the Monzo boffins recommend a single saving product to pop you cash in initially
Marketplace sounds like there will be more than one option per category.
Of course we need options for how long to lock away money with different interest rates. But don’t want multiple options/providers for locking away for 1 year as example.
I wouldn’t recommend opening multiple cash ISAs , but you can open a different cash ISA multiple times in a year , bear in mind every time you transfer between providers it takes a couple of weeks for your funds to appear , so you lose that interest ( I think ) over that period , so to do it multiple times defeats the object of a slightly better rate
1 Like
Ah, didn’t know that - thx!
1 Like
If you have an ISA open this tax year, you can only open another ISA of the same type if you transfer the entirety of the existing ISA to the new provider, and close the existing ISA account.
2 Likes
I’m sure Monzo can clarify, but so long as your savings are in separate banks they will each have their own 85k protection. The protection is per bank license i believe. HL has a nice little example.
2 Likes
You can see how HL do it https://www.hl.co.uk/investment-services/active-savings its really the only live example we have at the moment. I expect Monzo will have been looking at it to determine how they can do it better.
The thing is its not just rate and length, there’s minimum deposit, interest frequency, personal preference, etc.
Id kind of expect Monzo to make it more streamlined and simpler, but what if Marcus comes in and says we want to put our product in there. Does Monzo turn around and just say no x already has that spot at 1.5%?
I imagine no two offers on the marketplace will be the same.
Some might want easy access with a lower interest
Some might be happy to lock their money away for a year for a higher interest rate
Some might want to lock their money for X years for X interest
Everyone is different.
Maybe Monzo could have a calculator that was very simply to use with only a couple of options that would tell you the product they felt was best for you.
Like 1. How much do you have to invest?
2. How much might you invest each month?
3. How long do you want to invest for?
Keep it as short as possible
1 Like
That’s why initially I said ideally I want Monzo to provide these money services, not to link with other banks!
Exactly, I sort of expected Monzo to offer some really intuitive flexible accounts (via Monzo not via other banks), maybe even one account that ticked a few boxes depending on what and how you did it.
In my eyes there is actually little point in having so many different types of accounts, should have one account that depending on how you initially invest or spend your money etc you get different rates etc - why does it all need to be different accounts (I get the locking away your money for x time but all the other options).
Well I hope that Monzo may have decided it was better for them now to offer products with other banks than no product at all
Then in the future Monzo will begin to add its own savings accounts
I believe monzo make less money by providing these offers.
If you hold your money within the monzo current account monzo get paid 0.75% (base rate) by the Bank of England.
If you move your money into one of these saving pots, monzo is only getting 0.20%.
I think that’s how it works? 
I agree monzo taking a 0.2% fee from the provider is totally acceptable. I suspect that the 0.2 difference wouldn’t total a massive amount of interest lost for most people anyway.