Monzo launches instant access savings service

Within the new service, clients benefit from no minimum deposit, which adds to the bank’s other in-app budgeting features such as a range of other `Savings Pots` and a `Salary Sorter`. It was also developed directly with the feedback of its customers, in order to give them the flexibility to grow their sum of money and access it whenever they need to, at any place and time. 

Monzo already had easy access and fixed terms of options on its application. These included a 3,55% interest on its 12-month fixed option. 

According to the press release, Monzo’s new savings option matches the product launched by JP Morgan Chase’s.

Monzo’s development strategy

Monzo is an online bank that offers numerous services to its customers, focused on personal products (such as accounts, savings, and borrowing solutions, as well as features like bill spitting or pots) and business products. 

Monzo announced its expansion in the US in February of 2022. The financial institution was in closed beta for 18 months, during which it onboarded thousands of new customers from America, processed transactions, and gathered feedback. Following the entry into the new market, Monzo also launched new features and products, focusing on the opinions the company received from its customers. These products include a salary sorter, which helps users divide their paychecks and separate their savings, spending, bills, and checks once their paycheck is received. 

Later in the same year, Monzo partnered with the remittance platform Wise to support international payments for their customers. The aim of this collaboration was to make money work for all of their clients, by improving the way they pay invoices, employees, and contractors faster and more efficiently. 

All of the customers of Monzo were allowed to send money in 32 different currencies such as USD, GBP, EUR, or CAD from the application, whenever they were using a business account or a personal account. The deal also enabled businesses and organisations to manage cash flow and know the cost of sending money overseas, allowing them to have transparency on fees and the mid-market rate, as well as facilitating sending money abroad. 

Using Wise’s services, such as cross-border payments or inward remittance products, Monzo offered their end-used instant and transparent payments end-to-end from within their solutions. 

In July of 2022, UK’s Competition and Markets Authority ordered Monzo to review the way it informed departing customers about their historic financial transactions. The financial institution breached the Retail Banking Market Investigation Order between May of 2021 and March of 2022 after the bank did not send transaction histories to multiple customers. 

Following this order, Monzo had to make sure that every customer received copies of their transactions and payment history when they closed their account.