Will Monzo increase their Interest rates?

[Codebreaker55 (Patrick B Ryan)]

With the arrival of the chase card offering 1.5% interest on saving accounts when is monzo going to increase the interest rates for loyal customers?

[JIMMWX (Village Idiot)]

Hey @Codebreaker55 and welcome

Great question - I’ve edited your post title to make it specific to the question asked if that’s ok?

[Revels]

Chase are fighting hard to attract customers. Monzo are not in that stage.

So I wouldn’t bet on it being any time soon.

Interest rate rises - impact on Monzo

There’s some talk about interest rates being on the rise again: I was wondering what this might mean for Monzo. A few initial thoughts: The road to profitability should become easier - more revenue from customers’ deposits held in the central bank. A potential increase in the interest rate payable to Plus and Premium customers? Especially if the base rate goes up quite a bit, the current rates could start looking uncompetitive. More features in the free tier? By attracting increased custome…

[JIMMWX (Village Idiot)]

@Revels

Chase are fighting hard to attract customers.

That’s true, but would be nice to see Monzo offer more saving rates than what they have currently, it may be a necessary differentiator come a few months

[Revels]

I think one bank doing something to gain customers is a long long way from making interest rates a differentiator.

[JIMMWX (Village Idiot)]

I know and that’s my point, they are going to have to do things like this to stay relevant, in my opinion.

We are a long long way from the days where Monzo was strikingly different from every other bank out there, to borrow your phrase

[DaveJ (Dave)]

Higher savings rates during a cost of living crisis, isn’t really going to bring in a mass market of people.

[Revels]

@JIMMWX

I know and that’s my point, they are going to have to do things like this to stay relevant, in my opinion.

I agree, if everyone else does too.

If Starling, Natwest, Lloyds, HSBC etc etc all raise their interest rates for savings, then Monzo will likely follow suit.

While its a bank throwing money around to gain customers, then Monzo don’t really have to do much.

[Paulw (Paul)]

I guess it also depends on the rates of the banks Monzo are partnering with. If they go up then Monzo will hopefully pass that on. The plus/premium rates are a different proposition and it would be nice if they bumped those up as well. However Monzo have confirmed they’ve not plans to do that (according to their social media)

[Codebreaker55 (Patrick B Ryan)]

I personally think if people are Lucky enough to have savings then moving the saving pot to another secure bank for 1.5% interest is a no brainer when other banks are offering nothing with just your money sitting there.
I’m not in this bracket, but Chase will offer 1.5% interest up to £250000.
That’s why I asked the original question, if Monzo was going to do anything for saver’s, even those who a small saving pot.

[JIMMWX (Village Idiot)]

This is a good point. Would be nice even if the interest rate stayed the same if the threshold was raised for premium eg up to 2500 or something