Savings Pots Feedback


(Devan) #182

I was thrilled to finally have an interest-bearing account through Monzo, as I’ve been hoping to move all of my cash into one place. However (and I appreciate that I may be a minority here), as both a US and UK tax resident, the way Monzo is providing my cash to Investec (i.e., through a foreign trust), it creates additional reporting requirements for US tax residents that I didn’t feel like justified the 1% interest. If instead, Monzo could somehow have me just open an account directly with Investec (or another savings provider), but accessible through the Monzo app, I would be more likely to move my savings to Monzo.

Will keep an eye out for additional marketplace options that may meet my requirements, but for now, sadly, I’ll need to look at opening an extra savings account separately and directly through another bank (so it is just a bank account, and not through a trust).


#183

That’s interesting, I didn’t know about that. Can you elaborate - or point me in it direction of any documentation - at all. I’d like to know more!


(Nicolas Holzapfel) #184

I was on the verge of defecting to Starling, purely because it offers interest, so this feature was very timely and I was very excited about it. Really happy with the experience so far - everything was simple, intuitive and remarkably clearly explained. I have just one suggestion:

If I’m willing and able to keep at least £1,000 in savings via Investec, why does it all need to be in a single pot? Why not, once you’ve moved in that minimum £1,000, all Monzo savings pots become interest-generating? Behind the scenes, you’d still have a single Investec account managed by Monzo but, in terms of UI, you’d have multiple savings pots (i.e. virtual pots all sitting within a single account). This would allow us to generate interest even when we’re saving up for goals of less than £1,000. Nearly all of my savings goals are for less £1,000, but I still want to generate interest on the money I put aside for them.

To get around the current restrictions I have just one savings pot (an Investec one), and then use an entirely separate app called “Savings Goals” (horrible UI – I’d much rather use something designed by Monzo) to manually track my various savings goals, all based on bits of the money I keep within that Monzo-Investec money account. I’d be very happy if Monzo could make this simple without having to forego interest.

(Apologies if someone already suggested this – there are so many posts in this thread that I didn’t read them all).


(Is Santa here yet?) #185

It’s because of the loan to deposit ratio, as explained in the blog


((╯°□°)╯︵ ┻━┻) #186

It was my understanding that the loan to deposit ratio is why you need to have £1,000 minimum in your investec savings pot.

What I believe @nic_zap is saying is as long as you have £1,000 in total across all your investec pots you should be able to go below that threshold in your savings pots. Technically you will still have the £1,000 minimum held by investec but you’re just changing the way it is displayed by having is spread across pots.


(Is Santa here yet?) #187

if you could combine pots you’d be more likely to put it all in investec rather than keeping something in your Monzo account


(Nicolas Holzapfel) #188

Yes @Ordog’s description of my proposal is correct (thank you for summarising it better!). I understand the need for a minimum of £1,000.

Saving directly with Investec requires a minimum of £25,000 (https://www.investec.com/en_gb/savings-accounts/easy-access.html), which is way beyond what I would be saving in cash in any scenario, so Monzo have nothing to fear on that front.


((╯°□°)╯︵ ┻━┻) #189

There are lots of issues that would need ironing out. If your savings pots were as follows:

Holiday fund £400
Savings £400
Emergencies £200

Then you took out £50 from the emergency pot you would fall below the £1,000 threshold, so what would happen to the rest of the pots?

Still a valid suggestion / idea though :slight_smile:


(Is Santa here yet?) #190

The savings pot money is held by investec as soon as you open an account with them so if your pots add up to £2000 between 10 of them, all that money would be held by investec (if you could pool seperate pots)


(Nicolas Holzapfel) #191

It would have to warn you that if you take that out, your savings pots would no longer earn interest. The savings pots would all remain organised in the same way though. If you get it back up to £1,000, it could ask if you wanted to convert them back to interest-earning pots.

For me personally, I’d keep a permanent £1,000 emergency fund, and do other savings goals separately.


(Nicolas Holzapfel) #192

Well that’s how I’d like them to work! But currently that doesn’t seem to be the case. If I open a second Investec pot, it needs to be at least £1,000 just in that pot. So if you have 10 Investec pots, you need at least £10,000 in savings.


(Is Santa here yet?) #193

And that would cause problems for the loan to deposit ratio (assuming that people currently don’t aggregate their pots and keep money in Monzo)


(Colin Robinson) #194

@nic_zap This is exactly what I as going to ask! If I put the £1k in a Savings Pot can I then also convert my monthly savings for my Service Charge as well?


(Will Sherwood-King) #195

I have to agree with this entirely. I’ve been very excited about Monzo savings pots but there isn’t a single draw for me aside from keeping it in the same app. With NatWest I get 1.5% too, I get instant access and I have no minimum.

You need to get on Investec to offer better terms or partner with someone better


(Tony) #196

That’s a regular saver rate, though. You’re not comparing like for like.


(Marcus Nailor, Hot Coral Detective) #197

Natwest nailed that maths… :roll_eyes:

£1000 + £600 is definitely £1300 :smirk: I think for the £25 deposit they meant to say “condition is not met” and then put £300 deposited over 12 month :yum:

Edit:
I’ve let them know on Twitter :slight_smile:

Edit 2:

Well that was quick! Especially for a Sunday :eyes:


#198

Not exactly. You have to increase the balance by 50 quid a month.
There are plenty of more flexible accounts with better rates. I think this is more of an experiment by Monzo than an attempt to put out a competitive product.


(Is Santa here yet?) #199

Isn’t this exactly the same argument as the overdraft charges? Monzo never claim or intend to be the best in the market. Instead the aim is for convenience, ease of use and ease of understanding (and with a more than reasonable rate)


(Duncan) #200

Many people have noted that the interest rate is low compared with (some) other offers on the market. Here’s a thought: how will Monzo be able to introduce any additional providers who offer different interest rates? If any other providers are added with a higher rate then everyone will switch to that one. And, yes, providers could have different notice periods for withdrawal, but the same applies to each set of providers with the same terms - everyone will pick the best rate.


(Tony) #201

Yes exactly. I get the rate on the interest-bearing pot if I start with £1,000 and pay nothing else in EVER. The same cannot be said for the NatWest account. THEY ARE NOT THE SAME.