For a rainy day: Monzo customers can now earn interest on their savings

Fintech challenger bank Monzo is launching its first interest-earning savings pot.

Customers will be able to create so-called savings pots within their Monzo account that will earn interest at one per cent per year, paid monthly, on savings of £1,000 and above.

Customers can open up to 10 savings pots and can take money out of these at any time, with the funds being returned to their main Monzo account the next working day.

The bank said the feature is the most significant move it has made so far towards its goal of offering a broader range of financial products from different companies in a so-called marketplace model.

The rate outperforms rival Starling Bank, which pays interest on balance at 0.5 per cent AER up to £2,000 and 0.25 per cent on balances above that, up to £85,000.

Read more here.

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