Round up transactions and automatically pay towards loan

I just moved my loan to Monzo from Sainsbury’s since they had a competitive rate and actually provide online element to it, where as Sainsbury’s doesn’t. Also the big plus, Monzo doesn’t charge you for making additional payments outside of your DD and doesn’t charge for early repayment.

So I was thinking, using the roundup feature, could you automatically allocate this to loan repayments? Say I spent £10.50 at Tesco’s, automatically round up that 50p and use it towards load payments. At first I would think these little repayments wouldn’t do much, but the round up feature gathered around £30 in one month for me, which over a year, is a whole 12% of my loan passively paid off!

I think it would excel demand for their loan service even more.

I would love this. I currently do this into a “Loan payments” pot and do it manually, so being able to assign the roundup straight to the loan would be a brilliant.

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By moving it do you mean you’ve taken out the same remaining loan amount with Monzo and paid off the Sainsburys loan with it? If so, didn’t you done on the early repayment?

Yes, borrowed from Monzo and paid off the Sainsbury’s loan with what I owed. I paid early repayment fee’s for Sainsburys, but you don’t get charged those with Monzo.

I’d love to see this idea implemented! Would definitely help me with my loan :+1: