Thoughts on this would be epic
If you like it, Iāll 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 accountās debit card .
So basically, your cash is always invested/growing
I have cash sitting in my current account that should be getting invested, and growing . Itās 2021 ffs.
Before you say, āuse Freetrade!āā¦ 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 . Freetrade is for more considered investing - I also want something for my cash.
Shred it. Or love it.
Give me your thoughts
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.
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)
But you canāt spend from it - itās not a current account.
Yes you can! I do it all the time You can have assets and spend from those assets.
You can also have asset pots that you canāt 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 ācurrent accountā implies the Ā£85k thing which it might not have?
Nice - didnāt realise that.
They should have the FSCS Ā£85k cover on all investments
2 Likes
phildawson
(Sorry, I will have to escalate this.)
14
So in summary Monzo should provide a similar service to what Wise does
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.
Totally.
I donāt 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
phildawson
(Sorry, I will have to escalate this.)
18
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.
1 Like
phildawson
(Sorry, I will have to escalate this.)
19