Should current accounts auto-invest your cash? 🤔

Fintech ideation time

Thoughts on this would be epic :pray:
If you like it, I’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 account’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:. It’s 2021 ffs.

Before you say, ‘use Freetrade!’… 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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Isn’t that pretty much how most banks work anyway? It’s how they make profit.

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

Maybe if you’re Elon level. Rest of us mortals gotta do some digging first :joy:

I’m sorry, you’ve led with personal kryptonite so I just can’t…

PS I think someone’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 it’s not as “safe”, 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 can’t spend from it - it’s not a current account.
Still hard work imo :sweat:

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 can’t spend from it - it’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 can’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 “current account” implies the £85k thing which it might not have?

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Nice - didn’t realise that.
They should have the FSCS £85k cover on all investments :ballot_box_with_check:

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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 wouldn’t do this. Would be better automated?

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

Totally.
I don’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

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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Here’s Starlings approach

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Yep - that’s a clunky old user experience right there :grimacing:

Would love this

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