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


(Robert Shippey) #103

This seems like such a big oversight that it almost feels like it’s a ‘manufactured’ problem for marketing reasons somehow (perhaps creating the illusion of even higher demand than there is).

I struggle to believe that Monzo didn’t realise that Savings would be very popular, and even still they must have seen the growth since launch and been able to forecast this ahead of time.

In terms of fixing it, I assume it’s a case of renegotiating the contract with Investec to allow for higher amounts, that could/should have been going on way before it got to the point where they have to pull the plug.

I’ve already got my Savings pot set up so I’m not affected by this, but it just seems so weird that it gives me concerns about Monzos practices.


(Graham - Mental health professional) #104

Yes, I got that, Tony, but I picked up that you typically find yourself not making deposits to it.


(Jordan) #105

I’m not sure on this - seems a pretty risky practice to clearly upset and annoy a large number of customers just to show a demand.

They might have thought it would be popular but why would they completely over-estimate any interest and cost Monzo more money just so they never have a point where a re-negotiation is needed? This was clearly on a part product-implementation/ trial and now Monzo know that its something that is in demand they can cater for it.

I agree that it shouldn’t have got to this point and it should have run parallel but Monzo has grown massively in the last 6 months and so maybe it was exponential and not possible (or commercial) to have a much larger offering. - As some guys from Monzo have alluded to there are some customers with the full £250K in those pots! - Monzo have also said it was a mistake to let it run the way it has - I don’t see this as some sort of guerrilla marketing ploy.

We don’t know that this hasn’t and may have been in the pipeline to release in the next 3-6months but naturally these talks will need to be expedited.

As I’ve said earlier in this thread - this is a huge win for Monzo in the boardroom - saying “look even at below market % rates we have had a real interest - let us have a better product because we know we can back it”.


(Robert Shippey) #106

That’s a ‘risk’ many many companies take, normally in the physical product space.

I guess it’s just the optimist in me that makes me think that they couldn’t have been that incompetent enough to let it get to this point. I’ve seen a reply from someone at Monzo saying they screwed up, so I guess they really were just that bad.

That’s my point, they will have known about this ‘upper limit’ since day 1 so they should have started those talks 6 months ago otherwise by putting it off this would have always have happened.

Take for example, the medication I have to take daily. I know the pharmacy only gives 28 days worth at a time. I plan ahead and request my next prescription before my current one has ended so that I don’t have a day where I have no medication. I don’t wait until I’ve ran out and then say “ooops I couldn’t have known this would happen, now I have to wait 3 days for my next prescription to process!” If a dummy like me can see 28 days ahead, all the clever people at Monzo should be able to see 6 months ahead.


#107

From what Monzo has said, this analogy doesn’t work. You know exactly how much medication you take each day; this situation has arisen because demand for savings pots has been unpredictable, or at least, hasn’t been predicted well.


(Jordan) #108

Granted but I have never seen Monzo do something like that and with the fierce regulation of Banking Products I’m not even sure would be legal.

See I don’t see it as incompetence - I see it as a mistake yes no two ways about it but realistically we don’t know the numbers. But on the other hand we know what the product was - which in all honesty was one of the least attractive interest bearing products out there - so maybe they had completely legitimately mapped out how much they thought and got it wrong - I don’t see that as incompetence personally - I see it as Monzo’s first interest bearing product and it is a test run, because of course it is.

Okay taking this example - what if you don’t have a set amount of tablets you have to take a day. So instead one day you may need 3 tablets and another you may only need 1. You would naturally estimate how much time it takes for you on average to use those 28 tablets up. But then say for some reason in one particular month you needed 10 in one day - that’s just thrown everything out of balance. This is clearly what has happened with Monzo.

I find it hard to believe they haven’t been in ANY talks to renew the product or release a new one - these things take time and they’ve been cut short and so need to now work quicker.


(NM) #109

Another reason to understand the oversight/ the mistake that was made is to look at the jobs that Monzo are currently hiring for.
It would be very easy to understand that if some of those jobs had been filled then this would have never happened


(Jemima) #110

Please can we get different savings pots, for example with a lower required amount to open one as oppose to £1,000!? That would be nice :money_with_wings:


(Jamie) #111

I closed my savings pot a few weeks ago and moved my savings elsewhere as soon as I realised I could be getting over 3 times the interest rate that Monzo were offering.


(Jesus Garcia) #112

Please iluminate us, as I cannot see any savings accounts within the UK at the moment giving 1% or more.


#113

Really? Where?


(Jesus Garcia) #114

Typical… just when I was half way of moving money from other saving accounts in other banks. No I have been left out :frowning: :triumph::triumph::triumph:


(Graham - Mental health professional) #115

I saw that reply too. They screwed up !!
That’s all I read into it. Red faces, embarrassed glances, and I suspect a resolve to not do THAT again. Is it really any more than that?

I’m surprised we don’t yet have reference to the Grassy Knoll…:smirk:


(Jamie) #116

I opened a Nationwide FlexDirect account that gives me 3.5% for a year. After that it goes down to 1% so I’ll review my options. Worth noting that it’s only for savings of up to £2,500 but I won’t save more than that in a year!
Tesco Bank give 3%
I believe TSB also give ‘up to’ 5%

You can find details on MoneySavingExpert website


(Rika Raybould) #117

While higher percentages, these will be up to a fairly low (in savings account terms at least) limit. :slightly_smiling_face:

Here’s the page I believe you’re referring to:


(Splodf) #118

Marcus.

Thank me later.


(Stephen Spencer) #119

There does seem to be a bunch of Mea Culpa from Monzo employees, but the way I read it was that they predicted that the limit would be hit in e.g. March, and that saving provider number 2 would be launched in e.g. Feb, but Savings2 has experienced unexpected delays and will no longer be shipping in Feb in time to head off the limit-hitting.
I don’t see anyone here to really point significant “blame” at. Maybe Savings2 should have been less tricksy to integrate? Maybe Monzo should have advertised the ceiling from the very start and positioned the product as “limited time”, or added that tag a while ago when takeup was higher than expected? Maybe I’m barking up the wrong trees entirely?


(l8n.me) #120

Nah, that (sadly) wasn’t a screw up so not a good comparison. If the knoll had been painted an ugly coral and the shooter on it had only bought one bullet so had to ask them to cancel the procession and perhaps stage it next month when he had actually managed to get his act together and bought a few more bullets we may be on to something…


(Graham - Mental health professional) #121

I like that.

Actually I was referring more to the conspiracy theories which abound…:face_with_raised_eyebrow:


(l8n.me) #122

You were?! I hadn’t realised. :stuck_out_tongue_winking_eye: