I think the original poster is talking about the principle of the thing, not the small amounts of cash involved.
What I would prefer is a way to select a reoccurring bill and set it to automatically take from a savings pot by working out for itself what one working day before the bill is.
If it’s just a warning then you still need to do something.
Still on a mortgage payment it’s likely a couple pence we are talking about. Most bills would be a fraction of one penny.
I am not one to throw money down the toilet. I do not care if it is 1p or not, it is still hard earned cash.
Small amounts add up over time, even if they seem small.
If I gave up 65p every week of the year that adds up to over £33. I could invest that at 4%. compounded annually, assuming monthly deposits after 40 years that would be £2,579.89
Also who says I am paying a bill with the money from my Pot? I could be reinventing the funds elsewhere?
Naw I am talking about the interest
Hang on that 65p is for a £10k reoccurring bill paid every week?
Why would you be taking out half a million quid spaced out over every week of the year to pay a bill? that’s got to be an edge case.
£10,000 x 52 ?
For £100 it’s 32p for the whole year in weekly payments or 7p interest in monthly payments.
Even it that scenario we are talking payments always on a Monday.
Can anybody point me to where it describes how interest is paid? I knew about interest not being paid until the money had arrived with the their party but don’t remember seeing anything about when interest spa being paid on the way out?
Searching for ‘interest’ in app gets you to ‘How does interest work on a Savings Pot?’ but it only talks about the money going in.
Because I am not.
Well you have to use realistic figures otherwise it’s not £33.00 for most people it’s 7p over the year. Which doesn’t get turned into £2,579.89.
Hey if you want to throw money in the bin, go ahead.
That is a huge amount of whatifery which applies to nobody.
Haha, very good! I would of course have used the word “principal”…
I’m all for interest and gaining money but I think there’s a different way which is improving the current bill pots.
If I could select each of my fixed outgoings and then select which Easy Access Savings Pot it would take from. The money is held earning interest and then automatically withdrawn at the optimal time to cover that specific bill.
It could work for the non-fixed amounts by taking the last bill amount out of savings. If it was too little take the extra from balance, too much put the extra bit back. This is all done automatically.
This would reduce the need to have a balance to cover all the outgoings and no manually transfering money or needing to be alerted.
Has this idea come from what this person said a couple of hours before this topic was created?
What a strange coincidence
I like the word whatifery.
I’m not trying to be harsh in this thread, and its fine using maths to prove a point but its needs to be close.
In reality with a monthly £100 bill and taking out money two days earlier than you need to equates to roughly 7p a year with the 1.15%.
Two pound, eighty pence gained over forty years. Even if you invest that amount its less than a tenner, and thats forgetting inflation exists.
Ten years after Blade Runner 2049. Forty years! (hopefully not)
I understand how it all works. I’m saying Monzo could potentially advance the money for the benefit of customers
Oh that would be lovely and I’d vote for it but I think the chance of that would be slim to none in happening as I think it would be business suicide to start giving out Monzos own cash to customers whilst waiting to be credited by their lending partners.
If anyone hasn’t tried Marcus you usually get it within minutes back to your account and it’s currently 1.45%. I know it’s not an integrated solution but you’ll get a better rate and faster access.
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