Savings Pots Feedback


(Gus) #122

Hi, I’m with you on this.
The hot rumours going around were that Monzo was going to introduce a “High Interest” savings account.
1% is not High, and as it’s well below the inflation rate, it’s more of a “Losings Account”
I’m currently getting 5% from Nationwide, First Direct and Chip and 3% from Tesco, Ratesetter and FundingCircle so I’m sorry, I will not be taking part.


#123

Not sure where those rumours were circulating, but I never heard that.

I think 1% would be fine if it was instant access.

The difference between 1% and 1.5% for most people is negliable at best, and the convenience of having your money in one place is probably worth that .5%


(Harry) #124

Glad to see it’s finally out, the one thing that I wouldn’t like is the “next working day” clause as others have mentioned.

I do like the idea of having my complete financial life in one place so I think I would maybe forget the .5% interest I may get elsewhere for this.

All my savings are currently over in Australia earning 2.8% so I think I’ll just leave them there for now :stuck_out_tongue:


(Hugh Scantlebury) #125

5%?!? Jeepers!! :smile:


(Hugh Scantlebury) #126

Set up today as better interest than First Direct were giving in their equivalent so that is great.

As ever the sign up process was a breeze. Congratulations.

The swipe left thing not that intuitive but at least there was a prompt. So well done on that (gamification of apps and software is the future!).

I run a Cloud based accounting software company so I get the whole mechanics of the relationship with Investec; ‘loan to deposit ratio’; Financial Services Compensation Scheme (FSCS) protection etc.

My ONLY quibble is the fact that if you move larger amounts around, the scrolling graph on the app home / account balance becomes pretty useless in the app where it “flatlines” in the month of the movement (in terms of scaled representation). I paid in money around midnight on 1srt November and it has reduced any meaningful use of the graph for both October and November (so far).

I also agree with @Jttp on the whole ethical thing. I used to bank with Co-op till they lost their way and sold out to a US private equity hedge fund. Since then many have done similar and the branches and the service has gone. The point made about demographics is a fair one. We have chosen Monzo because of a whole bunch of value statements with which we are in agreement with. Some ethical emphasis would also not go amiss IMHO.


(Bruce) #127

SAVINGS INTEREST TAX

Simple answer is…

This is not an ISA, so yes you do need to check if you need to pay tax on the interest.

However the government gives everyone tax breaks on interest, so it depends on how much you earn each year and how much interest you earn a year.

Check out their comprehensive page on TAX ON SAVINGS INTEREST

The idea here is that basic and higher rate tax payers can earn either £1000 or £500 tax free a year… if you earn less than £16,850 you’re in luck and you can have £5000 tax free…

These bands mean you have to have quite a lot in saving to ever have to pay tax on savings interest.

Please note I strongly recommend reading the government advice.


#128

For balance, these all have downsides though…

Chip, Ratesetter, and Funding Circle are not FSCS protected bank accounts so not as safe. Ratesetter and Funding Circle are investment products so their value could go down.

The Nationwide, Tesco, and First Direct accounts are current accounts or regular savers that all limit the amount that can attract interest to around £3k or less. They also all have certain requirements that need need to be met in order to receive interest that could, for some, be more difficult to meet than Monzo’s £1k minimum deposit.


#129

Still not available in my app. Sent a message to the support team but no response.
Support is not as good as it used to be, A few weeks ago I asked them something and never received an answer at all. :confused:


(Gus) #130

I didn’t say I am getting 1.5% - I’m getting 5% - all on instant access accounts.
Funds in the P2P lending accounts are trickier to access, but don’t take much longer than a day or two to access.
The rumours that Monzo were having another funding raise and teaming up with a third party to offer a high interest savings account were in the national press - a quick check shows that I read about it in the Grauniad way back on 17th August


#131

Sorry, I was comparing Monzo to Marcus (with its 1.5%).

All of your higher interest accounts have rules and stipulations on them, which can’t be compared to what Monzo are offering.

Would be interested to read the article if you have a link?


#132

https://www.ft.com/content/ef54082c-a16a-11e8-85da-eeb7a9ce36e4
and


#133

Thanks!

I remember reading it, but must have glossed over the “high interest” part.

Clearly the forum had better instincts than the journalists :joy:


(Camilla Keedle) #134

I know there are some people who think a one day delay is too long, but I think it would be great to have a delay you can set, e.g. 3 or 5 days to help ensure savings stay saved.


(Chris Rimell) #135

This is only the first product, and there may well be variations like fixed term. I doubt there will be high-interest, instant access. Investec offer 1.15% max on their easy access account (2% + for fixed savings) and you need to invest £25k to get that rate!! - https://www.investec.com/en_gb/savings-accounts/easy-access.html

Believe it or not 1% is actually high-interest :money_mouth_face:

Yes, that kind of fits with the lock/freeze too. Would be a helpful feature


(Kevyn) #136

How is 1% a high interest account?

There are plenty of savings accounts out there that easily beat that rate up to a 5% interest rate for Regular Savers.


(Chris Rimell) #137

You need to compare like for like products. An instant access saver and a regular saver are different types of products. Most regular savers limit withdrawals/closures which means they are not instant access (the nationwide one doesn’t).

1% is high for an instant access account with no restrictions, no limits etc. An instant access account will vary from 1.75% to just about 0% at the moment, so 1% is at the high end of this. Plus base rates are 0.75% so anything about that is high.

Of course if we’re talking regular savers, then 1% is nothing. However, a 5% rate on a regular saver isn’t a generous as 5% on an instant access. The actual equivalent is about 2.8% as a straight comparison (compound interest of £250 per month for 12 months into a 5% regular saver = £82 vs £84 in a 2.8% interest instant saver vs £30 in a 1% instant access for 12 months).


(Jonathon) #138

Forgive me here, for I may be being stupid, but how is having a working day’s delay “instant access”?


(Chris Rimell) #139

Before faster payments :stuck_out_tongue:


(Jonathon) #140

Not sure that I follow…


(Chris Rimell) #141

Before the faster payments system was implemented, you had to wait days for your money to move around the system. You sent it, and waited.

It’s not brilliant, but I don’t think it’s a big barrier for the most part.

PS if you happen to have premium bonds or other accounts with NS&I, you have to wait usually a day or so for the money to be de-invested and then transferred to you.