Monzo is certainly a useful account for budgeting. In addition, you can also use it very effectively to save. We detail this more in our Budget like a Pro article, so I’ll just go over the basics here.
These are ‘regular’ Pots and are a great way to stash money away that you might need in future. Personally, I have pots for Christmas, birthdays, holidays and home improvements. The set-up I have automatically saves money into these pots each month, which means it’s all there by the time I need it.
So, when it comes to booking a holiday or buying new sofas, I can draw down from that pot. It’s worth noting that you don’t earn interest in regular Pots, but you can gain instant access to your money when you need it.
For increased motivation, you can change the images on your Pots to reflect what you’re saving for.
Monzo Savings Pots
These are like the pots above, but with a few crucial differences. Firstly, you can earn interest. Behind the scenes, these are provided by other banks but are available via your Monzo app. As a result, these change from time to time and can include ISAs, fixed-term savings and easy access savings accounts. The second main difference is that the money if often locked away for a fixed-term. Even if it isn’t, it can still take a few days to withdraw.
Monzo Plus and Premium Savings
Plus and Premium accounts offer decent savings rates on current account balances up to £2,000. However, because of this limit, the amount you can earn is also limited. As a result, the interest from either account won’t cover the annual account charges. Therefore, it doesn’t make sense to upgrade for this reason alone.
A very handy feature that allows you to automatically add money to one of your pots. Enabling this men’s that every transaction is rounded up to the nearest pound and the difference deposited into a nominated pot. This is a neat feature that can allow you to save money easily without really noticing.
Advanced Round-ups, available with the paid accounts only, allow you to put 2, 5 or 10 times as much spare change into Pots every time you spend and turbo-charge your savings.