Why I Love The Monzo Savings Accounts

Welcome back to another Monzo appreciation post. It doesn’t seem I can go a month here without preaching about them in one way or another. But they’ve been a huge help when it’s come to my budgeting and savings journey. If you don’t know much about Monzo check out how it’s helped me budget better and save here. But I wanted to talk about today were the Monzo savings accounts or pots as they’re known on the app.

I’ve spoken about it before but the way I find it easiest to visualise my money is to have it separated. For a long time, this meant having a lot of bank accounts. More than a normal person really needed. But I liked having one for spending, one for holiday saving, car saving, bills, tax money and the list goes on. When I discovered the Monzo savings accounts I was able to cancel some of my accounts which I’m sure has helped my credit score over time.

You can split your money with Monzo savings accounts

The biggest advantage of splitting your money into pots is you can visualise all of your money. For example, I currently have 16 different pots outside of my normal current account. These range from savings for specific things like hen parties, a fancy meal out and holidays to general savings like our emergency fund, mortgage overpayments and car savings.

But even though I have all of these different Monzo savings accounts as pots it’s still just one account. So when I talk about how many physical bank accounts I have this is just one. There’s no limit on how many pots you can have (or at least I haven’t seen any) so you can split your money as much as you want.

Earn interest within your pots

If you open a Monzo savings account there are options to make some interest. You can option easy access savings account if you need access to your money. Or you can choose fixed-term savings where you can’t withdraw your money but the interest you’ll earn is higher.

There’s also the option to open an ISA as one of your pots, although remember you can only open one of these each tax year. And currently, the maximum you can put into an ISA per tax year is £20,000.

You won’t spend the money in your pots unless you withdraw it

When you set money into a pot you can’t actively spend it when you use your card. So there’s no worry about accidentally using the money you have set in a Monzo savings accounts. If you want/ need to you can withdraw from the pot into your current spending account. But it’s so helpful as it means you’ll always have that money locked away for safekeeping.

You can get standing orders and direct debits to come out of particular Monzo savings accounts

If you’ve set bills or standing orders to come out of your Monzo account you can set it to come out of a particular pot. I’ve seen people who have a separate pot for each bill and have the direct debit come out of that Monzo savings account. This is the ultimate way to split out your money and make sure your bills and set expenses are coming from the right places.

This is especially useful if you’re self-employed or get paid weekly as you can top up the pots over the month before the direct debit comes out.

Do you Monzo savings accounts/ pots?

Pin It