Monzo Bank

Monzo savings review

Spending money is more fun than saving it, but Monzo is great for squirrelling away a few quid each month without thinking about it too much.

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After becoming one of the most popular UK challenger banks offering digital only-current accounts, Monzo created a savings marketplace, which offers its customers the ability to save money via a selection of third-party banks.

Looking for Monzo’s current account? Read our review

Easy access savings accounts

Table: sorted by interest rate
Monzo Bank's best easy access rate of 4.67% is significantly lower than today's market-best rate of 7.49%.
1 - 5 of 10
Name Product Account type Withdrawals Min. opening balance Interest rate Deposit protection Open via Incentive Apply link
Monzo Bank – Easy Access ISA Savings Pot (powered by Charter)
Cash ISA
Instant access
£10
4.67% AER variable
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Monzo Instant Access Savings Pot - Plus & Premium
Variable
Instant access
£0
4.6% AER variable
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Instant Access ISA Savings Pot - Plus & Premium
Cash ISA
Instant access
£0
4.6% AER variable
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Easy Access Savings Pot by Paragon
Variable
Instant access
£10
4.55% AER variable
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Easy Access Savings Pot by OakNorth Bank
Variable
Instant access
£10
4.51% AER variable
FSCS logo
protected
Open via: mobile app
Go to site
View details
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Cash ISAs

Table: sorted by interest rate
Monzo Bank's best cash ISA rate of 4.67% is very slightly lower than today's market-best rate of 5.1%.
1 - 5 of 6
Name Product Interest rate Minimum investment Interest paid Withdrawals Deposit protection Open via Incentive Table product description Apply link
Monzo Bank – Easy Access ISA Savings Pot (powered by Charter)
4.67% AER variable
£10
Monthly
Instant access
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Instant Access ISA Savings Pot - Plus & Premium
4.6% AER variable
£1
Monthly
Instant access
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Instant Access ISA Savings Pot
4.1% AER variable
£1
Monthly
Instant access
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Easy Access Savings Pot ISA by OakNorth Bank
3.85% AER variable
£10
Monthly
Instant access
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Easy Access Savings Pot ISA (powered by Shawbrook)
3.82% AER variable
£10
Monthly
Instant access
FSCS logo
protected
Open via: mobile app
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Fixed-rate bonds

Table: sorted by interest rate
Monzo Bank's best fixed-rate bond rate of 4.86% is very slightly lower than today's market-best rate of 5.22%.
1 - 5 of 6
Name Product Interest rate Invest Interest paid Withdrawals Open via Deposit protection Open via Incentive Table product description Apply link
Monzo Bank – Fixed Savings Pot (powered by Charter)
4.86% AER fixed for 182 days
£500 - £500,000
On maturity
Withdrawals not permitted
Mobile app
FSCS logo
protected
Open via: mobile app
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View details
Monzo Bank – Fixed Savings Pot (powered by OakNorth)
4.8% AER fixed for 1 year
£500 - £500,000
On maturity
Withdrawals not permitted
Mobile app
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Fixed Savings Pot (powered by Paragon)
4.77% AER fixed for 1 year
£500 - £500,000
On maturity
Withdrawals not permitted
Mobile app
FSCS logo
protected
Open via: mobile app
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View details
Monzo Bank – Fixed Savings Pot (powered by OakNorth)
4.56% AER fixed for 274 days
£500 - £500,000
On maturity
Withdrawals not permitted
Mobile app
FSCS logo
protected
Open via: mobile app
Go to site
View details
Monzo Bank – Fixed Savings Pot (powered by Paragon)
4.51% AER fixed for 182 days
£500 - £500,000
On maturity
Withdrawals not permitted
Mobile app
FSCS logo
protected
Open via: mobile app
Go to site
View details
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What is Monzo Bank's best savings account with the highest interest rate?

The best savings account depends on what you want from your savings. If you're after fast access to your money, then an easy-access account should suit you. However, if you're happy to lock your money away for a time to access a higher rate, then a fixed-rate bond is a good option.

Finally, if you're looking to maximise your returns and shield them from income tax, consider an ISA. Below, we've listed the different types of accounts Monzo Bank offers, plus the highest interest rate currently available.

Savings account types include Easy access, cash ISAs, fixed-rate bonds
Best easy access rate 4.67%
Best cash ISA rate 4.67%
Best fixed-rate bond rate 4.86%
Fixed bond terms 6 months - 1 year
Opening options Mobile app
FSCS protection

How do Monzo’s savings accounts work?

If you have a current account with Monzo and are looking to open a separate account for your savings, you have two main options:

  • Pots. More than savings accounts, these are sub-accounts of your main Monzo current account. You can open them without any further documentation or application forms, then transfer money in and out of them instantly, but you won’t get any interest on your balance. They’re often used to save money towards a goal: if you want to save for your next holiday, you can open a Pot called, say, “Greece”, then move money there when you like.
  • Savings Pots. These are actual savings accounts; only, not with Monzo. Monzo manages what it calls a “savings marketplace” instead. This means that you can see different savings deals with the providers Monzo has a partnership with, compare them and open an account directly from the Monzo app. Once you’ve opened one, you can see the account balance in the app, which will also calculate your weekly interest, and set up a standing order to fund it regularly.

The rates on Savings Pots are fairly competitive, but keep in mind you can still get better ones if you go on the provider’s website and apply directly from there.

Monzo card on desk with newspaper

What types of savings accounts does Monzo offer?

Monzo’s Savings Pots feature, which launched in April 2019, allows you to choose among the following types of accounts:

  • Easy access savings accounts. They allow you to access your money when you need it. Unlike with a Pot, it may take up to 24 hours to transfer funds back to your current account.
  • Easy access ISAs. To earn tax-free interest; the maximum balance is your annual ISA allowance (£20,000 for 2024/2025). To keep the account open you’ll need to have at least £10 in it.

  • Fixed-rate bonds. These have higher rates, but lock away your money for a set period of time.

The minimum deposit for all Savings Pots is £10.

Monzo app features that help you save

Apart from opening a savings account, you can also use the Monzo app to organise your spending and get it to save some money for you automatically. Useful features include:

  • Spending categorisation. Every time you use your card, Monzo automatically categorises your spending and tells you how much you’ve been spending for groceries, household bills, shopping and so on.
  • Budgets. You can set monthly budgets for different categories and Monzo will notify you if you’re spending too fast.
  • Round-up feature. If you activate it, your transactions will be automatically rounded up to the nearest pound, with the spare change saved in a Pot. You can thus build up a reasonable amount of savings without having to think about it too much.
  • Saving goals. You can set one up for each Pot and Monzo will let you know when you’ve reached your target.

A quick look at the app

Pros and cons of saving with Monzo

Pros

  • You can compare accounts and apply for one directly from the app in a few minutes.
  • You can manage your savings account from the app and see how much you’ve saved and how much you’ve earned in interest.
  • The app has a few innovative features that really make budgeting and saving easy and fun.

Cons

  • You can get better rates if you apply directly with the provider.
  • The marketplace is still in the early stages, so there aren’t a lot of providers and accounts available.

Customer service information for Monzo

Email support
Telephone support
In-app or live chat
Contact form
Branch support

The verdict: Is a savings account with Monzo worth it?

If you’re always on the hunt for the very best interest rate and are perfectly aware of your spending and savings patterns, Monzo is competitive but not the best available on the market. However, let’s face it, most of us aren’t like that.

We want to save, but we also don’t want to think about it too much or waste time comparing a million options. If that sounds more like you, Monzo is a good shout. It offers appealing rates and useful tools that make budgeting and saving less painful and more fun.

Finally, if you already have a Monzo current account, opening a savings account too is an effortless and quick process and you can go from not earning anything on your Pot to getting a nice rate on your Savings Pot in a few seconds.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

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2 Responses

    Default Gravatar
    KerrySeptember 6, 2019

    I have opened a Monza account which way will just use for holidays abroad, can I just transfer money on a monthly basis to build it up

      AvatarFinder
      nikkiangcoSeptember 7, 2019Finder

      Hi Kerry,

      Thanks for getting in touch! Yes, you can use the “POTS” type of Monzo account. As it says on our page, more than savings accounts, these are sub-accounts of your main Monzo current account. You can open them without any further documentation or application forms then transfer money in and out of them instantly, but you won’t get any interest on your balance. They’re often used to save money towards a goal: if you want to save for your next holiday, you can open a Pot called, say, “Greece”, then move money there when you like.

      Hope this helps and feel free to reach out to us again for further assistance.

      Best,
      Nikki

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