Monzo increase their rate from 1.8% to 2.0%

[Connard]

Instant Access Savings Accounts | Monzo Ireland

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Obviously not the best rate on the market but still pretty good.

 

[podgerodge]

Nothing yet from Revolut.
But back in May following last ECB increase:

Revolut said the rate adjustment follows the European Central Bank's decision yesterday to increase interest rates, adding that it reflects its commitment to passing on market benefits to its customers quickly and transparently.

Malcolm Craig, Country Manager - Ireland at Revolut, said that while traditional banks have historically been slow to pass on market rates, Revolut is moving immediately to ensure its 3.4 million Irish customers can benefit.

So hopefully they will abide by their own logic soon.

 

[MrEarl]

Disappointed not to see them increase by the full 0.25%, but that said, I think they are still doing more than the "big two"

 

[Lightning]

Disappointed not to see them increase by the full 0.25%

Yeah, Monzo have pocketed 20% of the rate increase for themselves again. Increasing the margin that they earn. But yet still their behavior is still way better, in the context of passing on most of the increase, than the vast majority of the other providers bar Trade Republic.

 

[skrooge]

It probably reflects the unfortunate reality of the Irish market. A handful of price sensitive upwardly mobile depositors versus the inert mass deposit base.

The majority are price insensitive and prefer to stick with high street banks they've always known. That collective view means the three domestic banks get very cheap and stable funding - the dream of any bank.

For the small group searching for yield there are the likes of Raisin and a number of pan-european operators that offer savings specific options.

However, for the even smaller subset searching for current accounts and linked savings accounts the options are fairly limited. Monzo being one and while they can operate with much more efficiency than our big three they are not without operating costs. The fact they have such a small client base it probably makes sense they skim the 5 (or 50) basis points here and there. Especially when the reality is passing on that extra 5bps won't move the dial in terms attracting new costumers.