We’ve partnered with Charter Savings Bank to add new, higher rates to Savings Pots!
Nice to see the savings options expanding.
On a related matter, could you please make the terms & conditions of the savings accounts accessible in advance of opening the accounts? If I browse to this new savings account option in the app (or any savings account option) I don’t see any terms & conditions document to inspect in advance of making an account opening decision.
I’ve created a dedicated thread on this, but would like to ensure it gets noticed by someone from Monzo so thought I’d mention in this Monzo-created thread as well.
It is still a lot more expensive than going directly to the savings provider.
I understand Monzo needs to take a cut to make a profit but the normal principle would be that monzo gets a cheaper deal than the normal public price (in exchange of bringing them customers) and they take the difference as commission, so it would be the same price for the customer.
Someone is being too greedy, though I’m not sure if it is monzo or the savings bank.
When Monzo reach full scale I’m sure that sort of reasoning will come into play more regularly.
Yet still vastly better than most other current-account-providing banks (which is the relevant comparison for those who value the convenience of current account and savings account in the same place).
A quick scan of the best 1 year fixed term accounts from the major current account providers** suggests only Metro Bank has a superior option, at 1.9%. I think the next best may be Clydesdale bank at a measly 1%. Santander (to pick one of the biggest high street banks at random) offers only 0.5% for a 1 year fixed rate account.
** I’m defining this as the banks in the Competition and Market Authority Personal Banking Service Quality survey.
Edit: @bzc also just realised there’s a minimum deposit requirement of £5,000 if going direct to Charter rather than £500 if going via Monzo, so there is a benefit to the Monzo version aside from convenience.
I opened a fixed term savings account with Atom 11 months ago. It was a real hassle, and I’m coming up to the point where I have to make a decision about what happens next. Monzo may be a fraction lower than the competition in terms of interest rates, but fir the amount of money I have to put away, over 12 months, I’d lose a few £ by choosing Monzo over the competition. And save myself an hour of my time which I could then spend doing something more enjoyable.
If you’re desperate to eke out every last penny of possible interest, or you have very large sums to invest, then you should look elsewhere. For me, in the grand scheme of things, convenience wins and if this offer is still on in 4 weeks time, my Atom funds will be moving to Monzo.
Here’s an idea (maybe for Monzo Plus?) - if you come up with a better rate move us across automatically @Roxy
Please can we get some other savings options for those of us that don’t have £500 to open one of these pots?
Stupid question, but these fixed term pots, once opened can you add more money to them than just you opening balance (i.e. this new one they’ve announced)?
Problem with this is I wonder what the incentive would be for banks to come into Monzo’s marketplace if they know another bank could automatically grab all their customers just by offering a 0.01% better rate. There would only ever be one bank with all the customers. Probably not worth it from their point of view.
Also, wouldn’t be suitable for fixed term accounts unless you’re talking about the end of the existing fixed term (automatically move to best available fixed term option when current fixed term ends).
Yes but sometimes there are limits to the amount that can be added
There might be more than one style of product so quite a few might be interested
I.e. Small amount high interest
Large amount smaller interest
Locked away for 12 or 6 or 3 months
Saving pots that come with cashback/other rewards
All 3 of monzo’s fixed term savings pots don’t allow any additional deposits or withdrawals after you open them
That’s what I initially thought
I think other banks allow customers to hold multiple instances of the same fixed term account though. For example, open a 1 year fixed term account today then at some point in the future open a new 1 year account (of the same type) which is unconnected to the first. Customer would hold two accounts of the same type with different maturity dates.
Do Monzo allow this for the same provider and same account type?
What was the hassle? I had mine opened in about 5 mins from scratch. The last 2 years I’ve moved it when they matured to the latest 1 year fixed, took about 1 minute, if that to do.
App kept stalling during the application process. Several telephone calls and manual interventions required. I opened two accounts a few weeks apart and had the same ptobkems both times. App is pretty awful IMHO. Products also at the moment not hugely competitive.
Agree it’s a terrible app. 1 year fixed is 2% not bad
I’ve noticed this varies by customer… some Easy Access savers show as £300 to open for me, others on the Savings Facebook Group have screenshot theirs showing £100 or £10!
Have I missed something somewhere, did Monzo explain this? Just interested to know why different offers to different customers for the same product…