Pretty much as you remove the barriers of switching. On the plus side if all the rates converge then consumers might spend more time investigating ethical ( including environmental ) policies and switch, hopefully this’ll make providers more competitive in this aspect.
I didn’t say they are the same, just that the Natwest account isn’t a regular saver. It doesn’t really compare with any other accounts for that reason.
Comparing like for like is a bit pointless anyway when there are accounts with more favourable terms and better rates. It’s whether you’re willing to forgo those benefits just to have the money in the app - sort of…
Have you thought at all about competing at the lower balance/limited monthly contributions end of the market, as another option? I’m talking about the linked savers other banks have, where you get eg. 5% on up to £1500 (TSB), or 5% on up to £2500 for 12 months (Nationwide), or 5% on £300/mo for 12 months (First Direct). They can be fiddly, but ultimately you’re going to need a much higher balance to get as much from 1% interest as you can from 5% on a limited amount.
I don’t think so. The OD charges conversation was purely around “fees vs understanding” - Monzo choosing higher fees, in the interest of a clearer understanding (which will help some people, and may be more beneficial, whilst making it much much more expensive than other overdrafts).
Convenience doesn’t really play a part here (unless you class “understanding” and “convenience” as the same thing).
I’m not sure what Monzo are supposedly claiming to be honest - Without re reading all the marketing, I can’t really remember a USP here, other than “You asked for this… now we have it… kind of”.
Is the Monzo savings pot convenient?
To set up - Yes.
To withdraw? No. This will have different impacts on different people. But this is a very inconvenient savings account when compared with the market (of instant savings accounts).
Is it easy to understand? Well… Probably less than all the other savings accounts out there, because they are having to explain about Investec, and how your money will be with Investec, but in your Monzo account…
Easy enough for people on the forum, but not exactly plain sailing for those who just want a comfy bank.
So it’s not convenient, and it’s not easy to understand…(in the context of average savings account).
The rate is… well, it is what it is - People will show their opinions on it through their choice of where to store their money.
Edit - I should probably finish with this… As I get the feeling some people see criticism as a taboo subject.
I’m only saying this because I’d like to use Monzo 100%, and not have to deal with other banking institutes.
If the negative feedback on “savings pots” prompt Monzo to re asses their proposition, it’s a win win for every Monzo customer out there.
Perhaps. But perhaps it will just prevent them from introducing more suppliers in the first place.
Fair point, I hadn’t actually thought about that but I do believe there is a Goldman Sachs product also offering the Natwest rate without a required regular saver.
I get that Monzo is all about convenience and transparency and I will continue to use them as my base bank account. However, savings and credit cards are either (imo) not competitive enough or not offered and they are preventing me going what i ideally want to do which is full Monzo.
Convenience aside surely Monzo need to be competitive too for them to win more and more customers from the mainstream banks
Nail on the head mate!
I find it strange that no-one seems to believe Monzo have thought of any of these things in advance and deliberately positioned themselves where they are in the market. The automatic assumption seems to be that this is a mistake or not well enough planned. If that’s the case then clearly the bank has bigger problems than agreeing a savings rate with another institution.
Just because we, as individuals, aren’t looking for exactly what’s on offer doesn’t actually mean it’s an error on anyone’s part. It might just mean it’s a product not aimed at us.
Why is that such an impossible thing for people to conceive I wonder?
Equally, Monzo are not infallible. They don’t predict everything or how customers will react to it any of their products. Following something with blind faith is never the right way. You should praise where praise if due and give constructive feedback where necessary.
Absolutely, but that’s not the point I was making. The feedback is fine, it’s the assumptions embedded in it that I find mildly amusing and slightly sad.
I think referring to fair feedback as mildly amusing and slightly sad as if you’re some sort of superior being is “slightly sad” if I’m honest.
They may well have thought about everything we are discussing but that doesn’t mean that none of us are able to point out where competitors are offering more and how we believe Monzo could better compete. A lot of us are ultimately on these forums because we want to see Monzo succeed and if us slightly funny sad people want to feedback where we see potential improvements then why shouldn’t we?
I’m not sure I’ve seen any assumptions - Just feedback on what’s on offer.
It’s not our place as customers to look at a “deeper meaning” of whatever Monzo offer.
Monzo also haven’t implied anything other than “this is our interest paying product” - So we can only comment on what we see.
I wonder what the staff feedback was (as they were testing this long before it hit the mainstream).
If the feedback was “Brilliant, it’s better than what we had before” - Then you can see why it is what it is.
There is one situation where if I was in it, Monzo would be excellent!
Am I right in saying they are the only 1% next day which has not cap.
Say I buy and sell spaceships, and I need to move £50 million in and out on a weekly basis.
Maybe the real game is to target space salesmen!
I guess I’m reacting to language, then, and if there are shortcuts being taken then perhaps it is unfair of me.
When someone says “Monzo needs to do X”, I tend to read it literally and react since Monzo don’t “need” to do anything other than what their business decisions demand,
If what people mean is that “Monzo needs to do X in order for me to be interested” then I’m fully on board with the feedback. I just wish it would be expressed more clearly and with that understanding that we can only speak for ourselves rather than gather up all other customers under wing of what we personally want to see.
Does that make sense?
Can’t say I’ve seen much of that in this thread to be honest
I agree with what you are saying (we see plenty of “Monzo needs to do XYZ”, which is generally met by the obligatory eye roll)… But I’ve not really seen that in the feedback for the savings pot.
Or if it has been there, I’ve ignored it, as there is far more genuine feedback.
When will savings pots be rolled out to everyone? I just get the coming soon message.
If you lend me £1000 I’ll start one for you!!
Just an update on a previous post. I created the savings pot with about 7k to try it and closed it the same day. The cash would’ve been on deposit (after the waiting periods) for a day - I was asking what happens to interest earned on that day or for withdrawals/closures part way through the month.
It seems that it all works fine and once closed a few days later the interest is deposited into your normal account.
Ready and waiting with my £1000 to test it out
Yep I have the coming soon message now
Any news about when the rollout will continue?