Should current accounts auto-invest your cash? šŸ¤”

Financial Chat
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Fintech ideation time

Thoughts on this would be epic :pray:
If you like it, Iā€™ll build it.

A current account that automatically invests 100% of your balance in a low risk fund (~5%pa) and automatically & instantly disinvests whenever you spend via your accountā€™s debit card :credit_card:.
So basically, your cash is always invested/growing :crossed_fingers:

I have cash sitting in my current account that should be getting invested, and growing :chart_with_upwards_trend:. Itā€™s 2021 ffs.

Before you say, ā€˜use Freetrade!ā€™ā€¦ I love and use Freetrade, but I cba to workout how much cash to move every month and then pick stocks/funds, and then disinvest when I need cash back. Urgh :nauseated_face: . Freetrade is for more considered investing - I also want something for my cash.

Shred it. Or love it.
Give me your thoughts :thought_balloon:

P.s. tech stack worked out. All viable. Line of credit similar to an overdraft facility can handle delay between debit/spend and fund disinvestment so that payments can be instant.

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If you build it, they will come.

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Isnā€™t that pretty much how most banks work anyway? Itā€™s how they make profit.

5

Once upon a time. Current account interest rates gonna be 0ā€¦ forever? Savings accounts are dead too.

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Maybe if youā€™re Elon level. Rest of us mortals gotta do some digging first :joy:

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Iā€™m sorry, youā€™ve led with personal kryptonite so I just canā€™tā€¦

PS I think someoneā€™s giving this a go. Is it Wise?

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Narrator: yes

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I would love this! I do this with Wise Assets https://wise.com/help/articles/74dYRhMCItIf2IBJLTpFQs/how-do-i-use-assets although itā€™s not as ā€œsafeā€, its 100% equities in tech stocks :sweat_smile:

personally I am considering just moving all my cash to bonds or something super low risk on freetrade, paying with credit every month and then just paying it off (ofc keeping a fund incase the entire market blows up)

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Yep, this is dope from them, especially re: fx.
But you canā€™t spend from it - itā€™s not a current account.
Still hard work imo :sweat:

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Yep - bonds would take the edge off inflation too :flushed:. Credit card <> Bonds is a nice interim hack. Feels positive re; my suggestion :love_you_gesture:

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But you canā€™t spend from it - itā€™s not a current account.

Yes you can! I do it all the time :stuck_out_tongue: You can have assets and spend from those assets.

You can also have asset pots that you canā€™t directly spend from. But you can turn your GBP Balance account into an assets account and spend from the card / virtual card with it.

Not sure on the legislation, I presume ā€œcurrent accountā€ implies the Ā£85k thing which it might not have?

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Nice - didnā€™t realise that.
They should have the FSCS Ā£85k cover on all investments :ballot_box_with_check:

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14

So in summary Monzo should provide a similar service to what Wise does

:sweat_smile:

Going back to you have money sitting in your current account, why not just keep the bare minimum needed to cover 1 month in your current account and have the rest in easy access savings and/or investments.

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Pretty much :joy:

Managing finances and regular investments is hard work. Vast majority wouldnā€™t do this. Would be better automated?

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I mean you could create a direct debit to say T212 with a pie.

Or at a low level setting a Direct Debit using something like Wealthify.

And at a basic level something like Chip

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Totally.
I donā€™t get why these are separated products/apps.
So trying to explore the hypothesis that the investing returns offered by Chip et al should be bundled into the backend of a current account

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Oh I mean you could ask Monzo to provide this under one roof inside the app partnering with providers (like Starling does) but like the cash ISAs I would expect them to take a slice out of the profit/interest.

It would take some effort for Monzo to create a rival Wealthify product. They need to focus on actually making a decent bank first.

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19

Hereā€™s Starlings approach

Screenshot_2021-12-08-22-22-45-193_com.starlingbank.android
Screenshot_2021-12-08-22-22-45-193_com.starlingbank.android1080Ɨ2400 203 KB

Screenshot_2021-12-08-22-22-49-646_com.starlingbank.android
Screenshot_2021-12-08-22-22-49-646_com.starlingbank.android1080Ɨ2400 129 KB

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Yep - thatā€™s a clunky old user experience right there :grimacing:

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Would love this

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