I love pretty much everything about Monzo so I’m sorry to moan.
BUT - allowing Paragon to continually reduce their interest rate lower and lower is not going to wash
For a company that cares about retaining your users, you should be looking for a better business partner for your savings accounts.
I’ve kept all my savings in my savings pot despite previous reductions just hoping you would introduce a new savings partner with at least moderately good rates compared to market.
This latest reduction was the last straw for me. I’m going to be withdrawing it all and moved in to a stocks and shares ISA.
I appreciate market conditions at the moment mean rates are low but there are limits.
Hopefully you’ll kick Paragon off your panel soon and find someone better.
Everywhere is dropping now, what I want to know is when Munzo will drop the interest rate for the ‘premium’ product and where do customers that purchased it stand should they wish to cancel and go back to the standard offering once that happens.
Out of interest, what would you like other partners to offer, given the dire market? Everything is dropping, the BoE are talking about zero/negative interest, and you’re chasing half a percent by moving between partners in the vast majority of cases.
It’s been well documented elsewhere. Tldr FSCS protection doesn’t apply to Revolut ‘current’ accounts. If they were to fail, administrators can use some of your deposits to cover their own fees as it’s in Revoluts name, not yours.
I stand by my point that I’m dubious about it - their terms leave a lot to be desired.
There’s absolutely no mention on their product page, in text, of FSCS protection. If it applied properly, surely it’d have its own section highlighting this rather than be slipped into a screenshot?
When it comes to trustee accounts holding onto the money initially, I can’t see anything relating to the trustees being FSCS protected.
The trustee will hold your money for a short time in their “hub account” after we send it to them and before they send it to the bank. The hub account is also a segregated trust account, as set out in the Trustee Terms.
They then go on to use questionable wording, in my opinion:
Just like other deposits with banks, the money in your Savings Vault may be protected by the Financial Services Compensation Scheme (or FSCS as it is sometimes called).
Why ‘may’ ? Why can they not give me certainty about FSCS protection?
I just don’t think this area of fintech has been tested properly in the event of a failure by any of the three institutions involved. You’ve now got Revolut, a Trustee, and then the bank your money is deposited with. What happens if something in that chain breaks? How do I know my money is FSCS protected based on the final bank? What happens if the trustee has financial difficulties before the money is held in an account with my name on it?
I may well have been heavy handed in my statement that they absolutely have no FSCS protection, but the terms for those accounts leave me with way more questions than I would feel comfortable having, when depositing a large sum of cash.
I didn’t shout you down - I apologise if that’s how you feel, but please don’t read tone into the posts - I just didn’t want to be the reason a thread went off track / repetitive, when it’s discussed extensively in another thread. I also didn’t realise you were specifically talking about savings accounts with Revolut.
My thoughts exactly. It feels, frankly, that they’re either not confident in the safety element of the vault funds or the article’s author is unsure. There are typos elsewhere in the article which, all in all, leaves one feeling dubious.