Day 1 Thoughts of Monzo’s Savings Pots
I’ve been eager to move my savings away from my legacy bank… I’ve got a wonderful ISA with an almighty 0.20% interest rate But it’s tax free
There’s plenty of options, I could drop it into Marcus (the bank ) I could open a Nationwide account and have yet another bunch of security hurdles to jump through to access my savings OR I could holdout with my amazing 0.20% interest until Monzo deliver something amazing! This has been in the workds for a long while, I remember when APK teardowns revealed the inner workings of a pot with some kind of interest. Over the months more and more work has gone into this and with the Big list & some more blog posts - Savings Pots were becoming closer to reality!
As of today that reality is here! I wasn’t fortunate enough to be in the early 44,000 customer trial but that’s not the end of the world I’m thrilled that Monzo have rolled out their first true marketplace ‘plugin’ It’s truly exciting!!
Is 1.00% market leading? No. Is it better (for me) than 0.20%? Yes! Is it a sensible rate to offer? Also yes!
Monzo are making 0.15% in exchange for offering me (and everybody else) the following:
Really easy access to a savings account! No forms to fill in, no details to send off, no faffing over approval and waiting for a letter in the post with some numbers and other nonsense. Just a really solid looking savings account (pot)!
Next day withdrawal. This has been met with some grumbles… But really? I don’t see the issue with this. It’s not a fixed rate saver where your money is ‘locked’ away for several years. 1 working day isn’t exactly ages and considering it’s all managed within the Monzo app despite the money itself residing with Investec, I think 1 day to shuffle some funds, figures & ledgers, seems reasonable! (IMO)
With that 0.15% I’m sure they’ll be moving gradually towards being a profitable organisation, hiring more staff, etc. You know? The things businesses tend to do with profit
There’s not a great deal more to say about something like a savings pot It’s awesome to have! I’m happy and I will continue to use it until something better comes along in the Monzo Marketplace If I can invest in something via Monzo I might check that out, likewise if “supplier B” comes along and offers me >1.00% interest then I’ll almost definitely move over to that But in the meantime I’m very happy to be using Investec’s offering via Monzo to store my savings in
An in / out log of funds, it would be very awesome to see this on a pot-by-pot basis in general. But it would be especially useful for something paying out interest
Converting a pot from ‘regular’ to ‘savings’ would be great! I messed up initially just trying to open a pot, it hada minimum of £1k which was in another pot but not in my main balance my bad But it would be nice to convert / switch an existing pot
- It’s a shame because I lost my total & average deposits into a pot which has been running since pots became a thing Granted, it’s a minor niggle but something worthwhile (IMO)
Locking the pot, a trivial layer of protection to make it less easy than “withdraw”. If there was some mild resistance to this just to dissuade people from taking money out because it is very easy to do so (compared to it being in a different bank / different app where you won’t look at it as often as you would Monzo)
See a projection / calculator for interest or how much the pot might grow with. (There are 3rd party tools which can accomplish this but it would be awesome to have it all available at my fingertips )