Savings Pots Feedback


(Jonathon) #142

Yes - sorry maybe I misread you.

I assumed when you said:

You were referring to Monzo.

I just don’t see this savings offering as being instant access.


(Chris Rimell) #143

It’s a valid view. It’s next day.

In this case instant is the ease of which you can withdraw etc without penalty or restriction [Edit: I think this is actually the industry definition of instant access, it’s not about the time to withdraw]


#144

Do Monzo actually say it’s instant?

I’ve seen they call it flexible, but I don’t believe they call it instant.

If they end up using terminology to make it sound bettter than it is (through technicalities), they are no better than a high street bank.

No matter how you dress it up, 1% is not classed as “high interest” for most people, and the next working day withdrawal is significantly worse than most other savings accounts (which are instant).


(Kevyn) #145

Still trying to work out how it is high interest. It is only 2/3’s the rate of the market leader in instant access acounts. These are the top 10 instant access accounts.

  1. Marcus by Goldman Sachs, 1.5%, £1 minimum deposit, unlimited withdrawals.
  2. Bank of Cyprus, 1.47%, £1 minimum deposit, unlimited withdrawals.
  3. Family Building Society, 1.45%, £5000 minimum deposit, unlimited withdrawals.
  4. Virgin Money, 1.42%, £1 minimum deposit, two withdrawals a year.
  5. Tesco Bank, 1.4%, £1 minimum deposit, unlimited withdrawals.
  6. Charter Savings Bank 1.4%, £1000 minimum deposit, unlimited withdrawals.
  7. Shawbrook Bank, 1.4%, £1000 minimum deposit, unlimited withdrawals.
  8. Sainsburys Bank, 1.4%, £1000 minimum deposit, three withdrawals a year.
  9. Post Office (Bank of Ireland?), 1.38%, £1 minimum deposit, unlimited withdrawals.
  10. Paragon Bank, 1.37%, £1 minimum deposit, unlimited withdrawals.

(Jonathon) #146

Hmm. Perhaps this is the industry definition but I don’t think it’s how the general public view instant access.

I actually can’t find any “instant access” savings that don’t have instant withdrawals. Are you sure that this is the definition? I’m not saying you’re wrong, I just can’t find any evidence for this.


(Gus) #147

Why do you need to compare like for like products ?
The only thing that matters to me is that I should make money, and therefore the interest rate needs to be higher than the rate of inflation.
Surely making your money work better for you trumps the novelty of a savings account with a challenger bank ?
1% is pretty feeble and of absolutely no interest (no pun intended) to me.


(Chris Rimell) #148

I didn’t say it was the best of the rates out there, and clearly I indicated that there is a range of them (upto 1.75%). It’s not a market leading rate.

No, you’re right. They don’t say instant, that’s my bad. But it does fall into the “instant” category for comparison purposes against other products, as it’s not “fixed” etc


#149

In the interest of balance… it’s worth repeating a few counter arguments (just to keep them in the mix).

Whilst I don’t agree with them… I can see where they are coming from.

@Peter_G highlighted that he is basing his opinion from a “marketplace integration” point of view, and how well this sets the benchmark for future integrations.

I think we can all agree that it seems fairly seamless, and the “next working day” issue might be with Monzo or with Investec, so it’s hard to comment on that one.

If the other integrations were this good, we’d probably be happy.

The second point is (which has been reinforced by the new forum members over the last 24 hours), that the convenience of having your money is Monzo is worth quite a lot, and the withdrawal delay is not an issue to everyone.

It seems a lot of people had their savings in a bog standard current account, or a low interest (0. Something) savings account - So this is a nice upgrade.

I’d imagine there are millions of people who don’t regularly check for the best savings accounts out there (will have never have heard of Marcus, or might be intimidated by it), so will just keep their money close to them (likely with their current account provider).

So yeah, there are a few upsides here, which likely affect a lot of people.

However, hopefully Monzo gets the message that a lot of people (certainly on the forum), would like there to be changes (especially around the entry price and withdrawal delay), and they can work on making these changes as soon as possible.


(Gus) #150

Chip put all their saver’s money in a Barclays account, so for me to lose all my money Barclays would have to go bust, but yes, I agree there’s a risk.
I’ve also invested in Chip, which is a lot more risky, but I’m confident it will eventually work out to have been a risk worth taking.
Ratesetter gave me a bonus £100 for agreeing to lock up £1000 for a year, I’m only playing with it, but it’s consistently earning 3%
Funding Circle I’m less than impressed with - it’s hovering around 3% mainly due to the number of people defaulting on their loans - it should be doing much better.
Nationwide pay me 5% on the first £2500 in my current account (paid monthly) and 5% on the regular savings account - I can put £250 a month in that
First Direct pay 5% on their regular saver account and I can put £300 a month in that.
Having to lock in £1000 to earn 1% just isn’t cutting the mustard


#151

A hypothetical question: what happens to money in your savings pot if you CASS from Monzo?


(Tom) #152

I think my issue with this is the fact that it’s the most legacy thing ever! Totally un-Monzo!


(Tom) #153

Was thinking this morning - if this was a Starling product, instead of Monzo, they’d get ripped to shreds here!


(Marcus Nailor, Hot Coral Detective) #154

Why’s it a big deal? :slightly_smiling_face:

If it’s savings there’s normally a goal, with a goal there’s normally a deadline / date associated. Therefore I think most people would be able to live with a day’s wait :yum: (my 2c)

I’m sure it could change in the future to be instant - I wouldn’t complain :joy: I just don’t find this day wait to be a showstopper :see_no_evil:

It’s somewhat legacy but there is going to be a reason behind it, I.e. it’s not there for the sake of it :wink:


#155

Given the state of people’s savings (judging from the last report), I’d say most people’s savings are for “emergencies” - Rather than saving up for a goal specifically.

If I need access to my savings quickly, lets say my boiler blows up on Friday… I’m going to have to wait until the following Monday (or Tuesday if a Bank holiday) to receive this money.

It might not be a big deal to some people, but the “low” interest rate shouldn’t warrant this extra hurdle.

Withdrawal delay and a higher interest rate, or lower rate and instant withdrawal would have been the way to go.


(Tom) #156

I think for me, personally, I don’t have loads to save at the moment. So when I am able to put some aside, I know that there’s a chance I might have to pull a little back out on short notice. The day (couple of days if it’s a weekend) would make a big difference. That’s actually the reason I stopped using Chip.

I totally think that as an integration it’s well done, and the 1% rate isn’t bad, but for their first offering to have a time delay like this feels a bit odd.


(Tony) #157

Given the option of having the integration with a “time delay” on withdrawals, or no integration whatsoever, I think I’m fine with the former. I don’t think a delay on withdrawals is that “odd”, I’ve had a 30 day notice account in the past.

We know this is the first one. Now they’ve proved it can be done, so I’ll expect more integrations to follow, and hopefully they won’t have the same kind of restrictions or time delays.


(Nathan) #158

Do we think the days wait is down to monzo adding some friction from their side?

I mean think about it what would stop us if it was instant from having our “whole” balance in the INVESTEC pot and then only transferring the money as and when its needed for a purchase.

Monzo would be at quite a loss then?


(Andy) #159

I want to try this just for the experience but I can’t forgo 5% interest with Chip!

Sign up with this code to get 1% interest 3IQJOM

Apple: http://bit.ly/chipIOS
Android: http://bit.ly/chipAND :crazy_face:


(Simon) #160

I seem to be stuck on this screen with no way to continue

Any tips? I’ve got enough money in my account and have tried restarting the app a few times


#161

Have you been invited?

I’m not sure if the recent communication by Monzo was to say it was “open to all”, or whether they are indeed still inviting people in batches…

@cookywook - Can you confirm if customers will only be able to set up a savings pot if they have received the email?

Cheers