Why you can’t create new Savings Pots – for now


#83

Wait, does this mean that someone with a locked Savings pot that needs to unlock it early to get some of the money from it can’t then create a new one (as support have to delete the pot to unlock it early) to put the rest of the money they don’t need back in? That seems unfair and annoying…


(Splodf) #84

Indeed.

Hopefully by temporary Monzo mean like a week or two.


(Splodf) #85

I like this quote and I like to think this is still true.

I’m not actually sure how agile Monzo is anymore. They’re quite a wieldy bunch at the moment and there’s been a few examples recently of left hand not talking to the right hand!

I’d much sooner innovation stop and iteration begin.

But I’m off topic!


#86

Great to hear it was oversubscribed but it does raise a serious question mark about the partnership business model imho.

If Barclays takes £1bn in deposits at 1.15% cost then they’ll happily keep taking more deposits and lend it all out at 4% making them loads of net interest. If HSBC comes along with a 1.2% interest offer then a small percentage of the Barclays deposits are going to quickly move away, however the vast majority will remain due to customer inertia and brand loyalty.

With Monzo’s model where they are in partnership with a lender and they are opening it up to a marketplace, how can that lender be sure that if they take £1bn in deposits at 1.15% cost from Monzo users and lend it all out, another lender won’t come along offering 1.20%? In Monzo model they plan to ‘smart-switch’ the users to the best deal and so instantly 100% of the first lender’s deposits have been withdrawn and sent elsewhere, leaving them with £0 deposits and £1bn lent out. This is a fundamental problem and will lead to lenders like investec saying “we’ll punt £1bn but that’s the limit, over that and it’s too risky”.

I hadn’t thought of it from this angle before but this little charade has definitely made me think :thinking:


(Graham - Mental health professional) #87

That’s a pity. With the greatest respect, I think you’re overplaying the extent that Monzo can be a panacea for all things financial.

Given the ease with which you can set up a Marcus account, for example, and given the management effort of it is minimal, you’re probably missing an easy win.

I get the Monzo passion, but wanting it to be a one-stop shop has limitations. Have a play - you’ll be surprised…:grin:


(Kolok) #88

I think as a business monzo should have continued offering the interest pots until they sort something out, mentioned somewhere that monzo get a bit of money keeping cash in BoE so that would have helped mitigate the payout,

Also paying out if their own money would make monzo move a bit quicker to onboarding a new partner I think ,

It’s not a personal selfish view , monzo have stiff competition in the space and as an investor I don’t want them looking bad , and pulling their only interest product despite it being a big selling point is bad.


(Jordan Taylor) #89

Felt like I jinxed it!
Was just saying to the other half earlier today, that she needs to open a savings pot and chuck some money in. She’s now too late haha! Talk about bad timing :stuck_out_tongue:


(#savetheseabass) #90

I thought Investec are making huge profits and not a loss?


(Splodf) #91

Actually that’s a very valid point the money is under Investec ‘banner’ and not Monzo’s.

And that’s why I shouldn’t post at work. :neutral_face:


(Kenny Grant) #92

Perhaps consider a much lower per person limit (e.g. 10k) so you’re not in this situation again.


(Splodf) #93

Time for a long term fix I reckon rather then a sticking plaster.

Extend the deal with Investec.
Bring in a new supplier.
Work on bringing more to the table.


(NM) #94

The question now is whether they have the regulatory requirements now to renegotiate new deals with new suppliers, or whether they have to go through the same red tape again


(Dave Berry) #95

I guess most of my ‘savings’ are short term, less than a year kind of things, so to see them all in one place is helpful. What I didn’t mention before is that the deposit I’m sitting on for the day far in the future when I can afford to buy a house is somewhere else earning more…

Monzo offers me a better view of my ‘now’ money than that. YNAB was the ‘truth’ about our financial situation and the money itself was all over the place earning cashback or interest etc. But the problem with that was needing (fairly regularly) to ensure that the ‘truth’ was actually true! In Monzo I’m not worried about categories and faff, the pots and the summary circle are all I need!


#96

Ahhh just waiting for some money to come out of another savings to go into my pot hopefully it doesnt close anytime soon

If the issue is banks dont like having easy access savings account money, as the locked pots are such a hit perhaps Monzo could look at the notice account market like Aldermore who offer a 30 day notice account and Securetrustbank who offer a 14 day notice account might help with the limits, as an alternative to the current easy access savings


#97

Personally don’t care :wink:

As never had a £1000 spare to add to the saving pot, using Marcus for now until Dozens open with the 5% interest bonds starting at £100 (that i can manage) and depending on time of launch may have more than a £100 to add :joy:

Again personally Monzo has been a revolution to me, from single/joint accounts, pots and investment help on things like JISA & Pensions, and most of all the forum as without joining it, I would still be ignoring things like pensions savings etc :wink:


(Heather) #98

Same here and I also don’t use it. the 1% interest was in no way of any interest to me much too low for my liking


#99

I think a lot of people, including myself, use it just because of how easy it is.
I can see all my money in once place and it (was) super simple to just move money into the savings pot when you have a bit extra. :grinning:


(Tony, Secret Lemonade Drinker) #100

I’m doing the what with the what now? :confused:

I did say I have a Marcus account. :man_shrugging:


(NM) #101

Personally I think as many people have said being able to access Marcus through the Monzo App I think would be a serious boon for Monzo’s credibility but I doubt Goldman Sachs would be interested as I assume they’re working on their own fintech app/bank


(Michael Brown) #102

May be they didn’t want to say they have been struggling to get another provider on board?