Savings Pots Feedback

(Marcus Nailor, Hot Coral Detective) #370

From the T’s & C’s of the Savings Pot:

You can have more than one Flexible Savings Pot, but the £250,000 maximum applies to the total amount across all your Flexible Savings Pots, not per Pot.

I interpret that as there being no limit to the amount of pots, just the amount of money within those pots :smiley:

I’ve seen accounts with a couple of Investec pots :smiley: There’s no rule against it so I’d say it’s safe to assume you can open as many as you like (within the 20 pot limit) :sunglasses:

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(Splodf) #371

How did I know you’d know :wink:

Thanks @awjdean as well for your answer!

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(Abimbola A) #372

it says in the original post ‘you can open up to 10 Savings Pots if you like.’

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(Philip Brown) #373

Any ideas when you’re allowing more people to save?

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#374

Would love an update on when Savings Pots may be back!

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(Reilly) #375

This might have been picked up by others, but is the representative interest rate displayed in the Savings Agreement incorrect? If you leave £1000 in your pot for 1 year, you won’t have a balance of £1010, it will be slightly more than that. As the interest is being applied to the account each month, you would earn interest on each new monthly balance (ie compounded monthly). It’s just a small detail, but one that’s worth correcting, especially as this description seems to form part of the Savings Agreement.

If I’m wrong about monthly compounding, then it raises a slightly more important change - but may be best for someone from Monzo to reach out if that’s the case.

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#376

You’re correct. With interest compounded monthly at 1%, after a year the balance would be £1,010.05.

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(Reilly) #377

Thanks @katewilliams glad it wasn’t just a maths fail on my part. It’s a tiny amount, but across a portfolio of customers it’s an important detail.

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(Andy) #378

Maths should matter a lot, to a bank.

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(MikeF) #379

And is that the way it’s calculated?

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#380

Usually the monthly rate is slightly lower than the annual rate to adjust for compounding. I would be surprised if that is not the case here too.

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(MikeF) #381

Yeah, that’s what I was getting at really. I don’t think the text above is quite clear enough to tell us the basis of the 1%.

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(Chris Rimell) #382

I think the answer here might be pretty simple.

If you look at the summary box on your saving pot it says

What is the interest rate?
1.00% AER

It also has the same illustration of £1000 netting you £10 in 12 months. So either the AER rate is the adjusted rate that takes into account compounding effects. Or it is based on the assumption that the original balance doesn’t change and that interest is paid away. I believe looking at the Investec site terms it’s the former

That’s my understanding

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#383

Is AER not by definition the rate the Annual Equivalent Rate ie it’s what you’d get if it was paid annually(which wouldn’t include compounding)

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#384

From investecs website

AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once a year. The AER is intended to be an indicative rate to help you compare the return on different savings products

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(Chris Rimell) #385

I’m which case the calculation is correct for showing AER and they would make that clearer. It’s not there to showing the actual compounded interest

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(Fin) #386

Doesn’t look far away…

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