Shawbrook now reducing to 0.30%

Financial Chat
1

The email that I have been dreading, yet waiting for, has arrived:

Hi ,

On 20 July 2020, Shawbrook (the bank that provides your Savings Pot) will be reducing the interest rate on your Easy Access Savings Pot to 0.30% AER/Gross.

Current Interest Rate 1.15% AER/1.14% Gross (variable)
New Interest Rate (applies from 20 July 2020) 0.30 AER/Gross (variable)

AER stands for Annual Equivalent Rate and tells you what the interest rate would be if interest was paid and compounded once each year. Gross is the interest rate before tax is deducted.

From time to time, Shawbrook moves their interest rates to reflect the savings market while ensuring they remain consistently competitive for customers.

They have the right to change the interest rate at any time for their own reasons, but we’ll always let you know before any change. You can read all of your terms by swiping across to your Savings Pot and scrolling down to “Your savings agreement” and “Summary of terms”.

You don’t need to do anything

We’ll adjust the interest rate of your Shawbrook Easy Access Savings Pot automatically. As of 20 July 2020 your Savings Pot will start earning interest at the new rate of 0.30% AER/Gross.

Oh, well. Another pot bites the dust. Not worth the delayed access for 0.30% when I can get instant in Marcus.

2

Just out of interest (pun intended), what rate are you getting with Marcus? Thinking about moving my own pots…

3

1.05% but its not open to new customers currently :slight_smile:

4

1.15% until October as have a 0.10% bonus.

Not great, but I love the speed of the transfers, albeit my linked account isn’t Monzo as the account limits made it impractical when I opened the account.

Of course, Marcus is also only one pot and so a spreadsheet would be needed to divide anything stored in there, however, I do that anyway. Google Sheets is perfect for it for me :+1:

5

You say not great but think you’ll struggle to find much more than that?

6

Yeah, I did wonder whether I had worded that phrase incorrectly.

It’s not great for savers, however, a decent rate across the market.

7

Given that we only have a few thousand across several pots, I’m going to keep things as they are for the sake of ~£20.

1 Like
8

I agree.

Having done the maths, the pennies difference in interest is not worth any more of my time.

9

I recall something like Monzo was making a small percentage like 0.10% on the Interest Pots. Is that still the case?

11

There’s a minimum balance of £1000 to go direct so it won’t be possible for a lot of people

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12

It would be good if that information was still present. I just looked at the Paragon 0.5% account on Monzo Pots and it’s not on the initial screens. I tried it upto the deposit screen and it didn’t say anything about this. To me it feels like it should be clear if they do take a small cut for the service.

In other news. Chip are looking at adding a interest account, it’s through a partner which will pay 0.9% ( currently ). Sort of surprised Monzo can’t get something similar.

13

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15

:slightly_smiling_face: How much? 0.10%? 0.20%?

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2 Likes
17

Sorry I know I’m off topic but is that after the deposit screen?

Also why can’t Monzo say clearly we will take x% commission instead of showing the range?

18

I only have paragon as an option and since I already have them set up I’m not sure where it would appear if you were opening a new pot with a provider for the first time

It’s under the pot once you’ve set it up.

It’s a tiny range tho

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19

I have just gone through the steps to set up an interest earning savings pot. Although it says they take a cut, it doesn’t specify the amount anywhere in the opening process

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20

I haven’t set one up in a while now but I am sure it used to show the % when you were going through sign up

21

Yeah, I got that email yesterday - pretty big drop. Good while it lasted though - finding a better deal somewhere else shouldn’t be too hard.

1 Like
22

I noticed today that Shawbrook are paying 0.5% on their easy access account on their website, yet Monzo are only offering 0.15% for the same Shawbrook account - that’s a significant cut they’re taking from customers. Think I’ll just close my pots & go direct to Shawbrook…

Makes the whole Pots thing pretty pointless.