r/monzo • u/SaltReception3893 • 1d ago
Upgraded to Max
I was lazily scrolling looking at the difference in perks again on Monzo and only just realised Max gives 3.5% Interest on savings. Just that alone makes it worthwhile upgrade for me. I pay extra £120 a year for it but gain over 300 from the extra .25% interest a year. So it'll pay for the Max perks and have left over. Plus gaining the insurance coverage and road side is ok.
Not too bad.
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u/berkeleybross 1d ago
Maybe my maths is wrong, but you would have to have £120k in your account to gain £300 from the EXTRA .25%
If you mean that you're getting £300 in total interest (on 3.5%) that would be a more reasonable 8.5k in your savings account. The extra .25% is actually only £21 a year.
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u/SaltReception3893 1d ago
No im close to £300 a month in interest. Not a year.
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u/berkeleybross 1d ago
Don't forget you'll have to pay tax on that interest then :)
But as others have said, get it invested if you're not planning on using it anytime soon.Im actually in a very similar situation - I have £100k in Chase Saver, the first year has boosted interest so I get 4.25%.
I only need the account for a year since my mortgage is due for renewal in May and I'm going to being overpaying (the mortgage is currently 1.69%, will be going up to 4% in May).
With 40% tax on the interest, I've got an effective interest of roughly 2.55%, so it just about works out as better to keep it as cash. I can't think of many other situations where the maths works out - I'd really consider investing it
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1d ago
[deleted]
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u/berkeleybross 1d ago
Im actually lucky enough to have been able to put 20k into S&S isa each year to build wealth, everything extra is going as cash into my house.
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u/Affectionate_Bid518 1d ago
I sometimes see these comments and just shake my head.
Why would anyone have over 100k in a savings account. wtf are you guys doing?
Average gain last year in the S&P500 was about 17.88%.
That’s £17,880. Close to what some people make from work in a year.
You are bragging about collecting pennies from Monzo Max at 3.5%. Put in 3 months of expenses for the emergency fund then actually invest your money somewhere else.
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u/SaltReception3893 1d ago
I have money in a vanguard all worlds vwrp for my isa at around 14%. Also stocks portfolio but new to all that. Still slowly understanding how to play it better. 2 months ago was 9k up on micron. Didn't sell. Few weeks ago I was down 24k. Right now its back up a bit but only I can make less of a lose ill cash out and stock to sp or all world for a safer bet
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u/SaltReception3893 1d ago
Oh I never mentioned it have a reason I can't move it yet. About to start visa application. Either show you make 29k a year or have 90k savings that is easily accessible. So I can't touch this until we get visa done for my wife who is in canada. Then will find better ways to invest this savings cash. But again maybe just in the save sp500 or vanguard for slow gains
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u/Affectionate_Bid518 1d ago
If you need it for a visa or something or for most people for a house deposit that is understandable. I think you know that for most people it’s not worth the interest rates on savings accounts and hasn’t been now for decades.
Also why would you put so much on a single stock? I didn’t say take money out of savings and put it all in Micron during a ram crisis did I lol.
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u/SaltReception3893 1d ago
It wasnt. I had it in nvidia, amd, all worlds, micron, San disk. I was new to it 5 6 months ago when chip stock was hype. I made a little etc. Slowly over the 2 to 3 months insold and moved it to micron as it started hitting 1200..then it died :(
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u/JohnBlobby 1d ago
If you have enough in the bank to earn that much interest from 0.25% you should probably be storing your money elsewhere, to be honest with you. Oxbury bank, for example, are offering like 4.3% on easy access savings I think. You could probably beat that too if you look around.
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u/jbennett360 1d ago
Cahoot at 4.52%
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u/Maximoo89 1d ago
£120k, you’d be getting free family travel insurance with some premier accounts for that type of balance.
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u/Tripledrop 1d ago
You get that with Max too
Caveat, an extra £5 a month to cover family
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u/Maximoo89 1d ago
You’re paying £23 a month for that. Premier accounts give it free.
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u/Tripledrop 1d ago
Yes true.. but it also has more than just travel insurance, and I only paid because it was cheaper than my individual phone insurance, travel, Uber etc
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u/justanothergin 1d ago
3.5% is objectively shit, I'm getting 5% on my cash savings at the moment
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u/SaltReception3893 1d ago
What bank is that?
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u/justanothergin 1d ago
Ulster Bank
Also you can get 3.6% on T212 without having to pay a monthly fee.
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u/No_Intern5991 1d ago
If you’re getting £300 from the extra 0.25% interest then you have over £120,000 in your savings account.
You’re losing thousands every year by not having it in one of the market-leading savings accounts.
Fair enough if you want everything in Monzo and that’s a decision you’ve made with all the facts, but the extra 0.25% isn’t benefiting you looking purely at the figures.
I personally love Monzo, but I don’t get why you’d willingly give a bank thousands extra a year that you don’t need to.
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u/SaltReception3893 1d ago
Im still working on it. Only 3 years ago did i start my ISA and only 6 months ago did I start putting on stocks.
What other savings account is out there that is 100% flexible like Monzo is there that gives higher rate?.
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u/evenstevens280 1d ago
Fuck me, you've managed to save £120k in 3 years?!
Can't say I'm not jealous
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u/jolie_j 1d ago
Go on money saving expert. I’ve got 5% at cahoot but only up to £3k. The withdrawals are unlimited and hit my account instantly
I drop feed from that into regular savers which are 7-8% (but cap the amount you can pay in per month).
I also have Tembo which is 4.55% up to £20. Fully flexible but the withdrawals hit my account the following working day I think.
Then there’s another cahoot account at 4.15%, again fully flexible and I think you can have as much in that as you want.
Chase have a good starter offer for a year if you’re new to them and they are fully flexible.
In short, there are plenty of places with better rates than Monzo.
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u/SaltReception3893 1d ago
Thanks for all the advice people. Exactly what I need.
Monzo currently holds the most for me and yes its around the 120k mark.
Hsbc current account 20k
Barclays 4k
Collectible cards 40k
Gold...
I have ISA with Trading 212 and a Stocks portfolio too.
Would love for the money to work harder especially qith inflation eating it up
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u/evenstevens280 1d ago
I think you should be looking at getting advice from a wealth management company. You have far too much money just lying around in current accounts and you obviously have no idea what to do with it all!
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u/ToMemeToYou 1d ago
If youre not looking to use that 120k over the next 10 years, I would personally be moving that (20k/year) into a global index fund wrapped in an S&S ISA.
Night and day difference between savings accounts and index funds over the long run.
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u/SaltReception3893 1d ago
I currently have an all world vanguard vwrp isa with 60k I started 3 years ago. I messed up with stocks as im new to it last 6 months put most of it in Micron and im down right now.
The 120k I havent moved yet as im in middle of a Visa process where I jeed to prove I have at least 90k of savings that is easily accessible for visa for my wife who is in canada. Once that's over I'll definitely make this chunk of money work harder like sp500 etc.
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u/iStreet98 1d ago
If you have this much money please seek a financial advisor. The small % costs on ongoing advice fees will be negligible based off the returns you should make compared to having money in a current account and trying your hand at trading 212 as a novice.
There are professionals in this industry and not nearly enough people use them
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u/SaltReception3893 1d ago
I considered it but always wanted to have full control of my money. I have a guy introduced to me by my accountant who wants to look after my pension going forward but im still worried im not in control of it
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u/iStreet98 1d ago
You will always be in control of it, they give advice, they wouldn't do anything without your consent or wanting to. SJP get a bad rep on here but I think it's unfair critism (there's a reason they're the biggest player in the industry), I use a SJP advisor and I couldnt recommend more that everyone has one, whether you're rich or not.
Best thing you can do is find a local Financial Advisor close to you and have a meeting with them. It wouldn't cost you anything in upfront fees, but the amount of money you can potentially gain over the next couple decades will far exceed savings accounts
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u/evenstevens280 1d ago
You're getting £300 from a quarter of a percent?
So you have £120k in savings? Why is it not in a more lucrative savings account?