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Somewhat related question: How can Monzo offer 1.55% interest while the interest with most banks is around 0,3%?
by spiderfarmer 7y ago
Somewhat related question: How can Monzo offer 1.55% interest while the interest with most banks is around 0,3%?
- Jonnerz 7y agoLikely something to do with the fact Monzo are extremely lean and have minimal overheads compared to traditional banks.
- djhworld 7y agoThe savings accounts are offered by third party banks, not Monzo. The 1.55% rate is fixed term for 12 months with no withdrawals
- justusthane 7y agoMaybe this comment was about UK banks which I can't speak to, but we have banks in the US (Ally as one that I'm familiar with and use, but there are many more) that offer high-interest savings accounts at above 2% interest.
- bradstewart 7y agoCould be keeping a good chunk of their deposited cash in money-market funds (or similar) which are currently paying around 2-2.5%, while providing customers with immediate access to funds with their remaining cash (insulating their customers from the delays associated with buying/selling those funds and so forth).