Pots for 16-18

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21

I suspect it’s penny wise, pound foolish.

We’ll never know, but there’ll be downgrades, sure, but there will also be extra take up.

I’d frame it as just software features, so no interest, no free cash deposits, no card. You could even think about limiting the number of connected accounts etc.

The other consideration is increasing interest rates. Monzo will probably be in rude health shortly due to the margin they make on their deposits with the central bank.

That means they’ll be incentivised to increase their deposits, which could mean increased interest rates or (more likely imo) a lower tier which guarantees revenues but also brings in extra deposits because it cements Monzo as a primary account. It may also (hopefully) mean some Plus features making their way to the free account (limited free connected credit cards, anyone?)

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22

I think the total opposite TBH.

But it’s one of those things that’s incredibly difficult to prove either way and you can’t really test it without causing the harm.

23

I don’t know if this helps you guys with your thoughts regarding cost for Monzo, but in my previous role at another bank it cost us £80 every single time we opened a Cash account which was just a current account without the lending opportunities and no possibility for direct debits.

And to give you an even bigger idea, we did A LOT of those.