UK challenger bank Monzo announced on Friday it has added new interest rates for its Savings Pots. Monzo reported that it is now 1.81% (AER/Gross) on fixed Savings Pots and 1.15% (AER/Gross Variable) on Easy Access Savings Pots.
“We’re making opening and managing a savings account easier than with any other bank. We’re doing it by letting you round-up your purchases to the nearest pound and putting the spare change in your Savings Pot. We’ve integrated with automation platform IFTTT so you can set up smart savings rules, like putting £5 away when it rains.”
Monzo also noted that it recently welcomed Charter Savings Bank, which is backing Monzo’s Easy Access Savings Pot, as well as Monzo’s 12 and 6 month Fixed Savings Pot products.
“Financial Conduct Authority (FCA) data shows that almost 50% of the money held in easy access savings accounts in the UK is earning less than 0.5% in interest. Around 77% is earning less than 1%. We know some people find it convenient to have their Savings in the same place as their current account, but in some cases people are paying a price for this convenience. We want to make it easier to have all your money in one place and still get a strong interest rate.”
Monzo added that the interest rates are true as of August 9th on Savings Products with a minimum deposit greater than £500.