Smoothing of annual payments into monthly amounts

I think there’s a core miss-understanding from @conor with this and that is where the confusion is coming from. The issue is that to do it the way @conor is envisioning, you would actually need double the amount of the money in total. here’s the scenario explained that confusing everyone:

  1. you see a yearly subscription you want that costs £120.
  2. you pay it, select ‘split the cost over a year’ or whatever
  3. it takes ANOTHER £10 out of your account and places it into a pot and removes the initial £120 payment from your summary.
  4. every month it removes an additional £10 out your account and places it into said pot.
  5. at the end of the year, it either finishes and moves the money back in and excludes once more from the summary, or pays the subscription again using the £120 that is now saved in the pot and starts over.

What @conor isn’t realising, is that you still need to remove the £120 from your account entirely up front to pay for it, then move additional money each month to show that it looks like it’s split over the year.


No, it’s much simpler than that (and spelled out in Smoothing of annual payments into monthly amounts).

  • User pays bill form pot
  • Bank pays money back into pot over 12 months

It requires the money to be in the pot before you start.

I mean that’s essentially exactly what I said just less spelled out! You still need to spend twice the amount over the first 12 months. I realise it’s entirely possible as it stands, I was just trying to explain both sides of the confusion. I do think it might be a reasonable thing to do from a one click standpoint since it doesn’t really add any new functionality so isn’t a big feature, but solves an issue for people that don’t quite understand that they can do it at the moment with some manual set up.

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Re-reading now, I see what you mean. I read a different interpretation into some of your words, my apologies.

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Yeah I like that interpretation. One button click to begin saving for next year’s annual payment.

The description every month could even be something like ‘saving for Amazon Prime Annual Subscription’ and then, when you pay it, ‘paying for Amazon Prime Annual Subscription’

Hi guys.

MikeF is exactly spot on here. There is no double spending. I have the funds up from and do not require credit.

I am also not trying to plan for future expenditure. The thesis to ths one is relatively simple. I have had to make a large payment today and I want to split it up into monthly payments over the next number of months.

I’m sorry that I can’t explain it any clearer than I already have. But then again some people seem to have picked it up so can’t be that badly explained.

Trust me, my solution doesn’t require credit. If you don’t see that can you please re-read the steps I outlined above.

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Eh? Then it’s gone back in the ‘I don’t know what you’re talking about’ pile I’m afraid?

So you’re paying out 120 on something on day 1, so surely there has got to be a record on your account that you paid 120 to somewhere? As much as you’d like it to look like you’re paying 10 each month, you’re not, so whilst your budget appears all lovely and smoothed, it’s actually wrong, because you’re not paying 10 a month, you’re paying 120 and then accounting for it bit by bit.

And if your account isn’t recording 120 on day 1, doesn’t that also mean you’re in danger of double–spending the 10 in month 2 on something else, and the 10 in month 3 etc? What happens if you spend it and can’t make the 10 payment in month 3?

What you seem to want already exists. It’s called ‘pay an unexpected expense from savings, then replenish your savings over the next year’. What you are describing is just good financial planning and management.

Apologies if I’m completely missing the point, but if you’re not, in effect, planning for next year’s annual fee, then I’m not really sure what the point to all the faffing is.

So assuming you have a savings pot flush with cash already, pay the annual cost up front after transferring money from the pot and then setup a scheduled deposit into the pot (or use ifttt) of one twelfth that amount per month

I think somebody else has already recommended this :thinking:

Yeah what these guys said sorry mate I really think you’re missing how it could fundamentally work. If you’re not actually paying the full amount from your account then someone has to. If you are and you want it to look like you’re not, then it’s simply not possible as you could easily accidentally spend the money that you’ve already spent (confusing I know). So to stop you possibly spending then rest of the 110 pounds in month one that you’ve technically already spent, monzo have to remove it from your total! otherwise they’re indeed lending you that extra 110 quid.

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I came here to suggest the same feature (but like the good community member I am, I search before I post :innocent:).

I would like to see a feature that recognises transactions that are potentially annual, such as home insurance, car tax, TV license, etc. and then, once the transaction has been paid, offers the option of automatically creating and managing a pot that will take one twelfth of the transaction total every month (as part of committed spending) so next year, the bill has already been saved for.


Brill idea. I put £7 a month into a pot called amazon prime that works for me what do you think?

That would be the way to do it :raised_hands:

An old discussion but popups after I’ve setup a payment asking me things it thinks I’d like would be really annoying. I’d much rather set it up myself as and when I need it. This way I can apply it to non-annual payments too :sunglasses:

Agreed much better scheduling pots oneself

This is an amazing idea.

A simple solution:

You pay the merchant the large amount - say £100. Monzo doesn’t need to do anything with actual money but just needs to state in the summary that X amount (100/12) is removed from budget.

That’s all.