Monzo are working on developing virtual savings pots. But it sounds like these will be a feature that enables us to silo a certain portion of your balance, rather than a dedicated account with a special interest rate.
I have my doubts that Monzo will pay a significant interest rate on your balance when it’s in credit, whether it’s in your account or a saving pot because there’s no obvious way for them to fund that interest payment. Monzo are planning to invest some of the deposits in government bonds but given how low bond yields are at the moment, it looks like that won’t earn a meaningful return.
The good news is they will offer easy access to third party providers like Moneybox or P2P lenders like Zopa through their marketplace so that we can earn more interest on our savings though.
That will enable us to choose between a much wider range of providers & products, than we have access to through the legacy bank’s products.
I expect so. I’m sure Monzo will explain how this will work nearer the time. I’d be interested to know too but frankly, I’m in no rush to find out, as we can’t do anything about it even if we know the answer to this question at the moment anyway.