Even though inflation sits above eight percent, savers are getting higher interest rates for their savings.
With the base rate at five percent, savers can get rates as high as five and even above depending on what savings product they opt for.
Monzo Bank is one of the banking providers who have increased their rates following the base rate decision today.
They are offering 3.7 percent on their Monzo Instant Access account.
With Instant Access Savings Pots, people can take money out at any time and withdrawals usually go into their Monzo account instantly.
There’s no minimum deposit, and the maximum people can have in a Personal Instant Access Savings Pot and a Joint Instant Access Savings Pot is £100,000 each.
An Instant Access Savings Pot is great for saving towards short-term goals like building up an emergency fund or saving up for a holiday.
Instant Access Savings Pot is protected by the FSCS for amounts up to £85,000.
While Instant Access Savings Pots offer the greatest flexibility in accessing one’s money, other types of Savings Pots might suit someone better, depending on their goals.
Britons can open an account via the Monzo App.
Additionally, Monzo users can benefit from Monzo “cash-stuffing” after 4.2 million pots were created in the past year alone by 1.3million users.
Cash-stuffing is a method where people set aside money in envelopes or virtual Pots to save for particular occasions or goals – to help them manage their money.
One woman managed to pay off £4,000 debt by becoming organised and using her in-app banking tool to help become more organised.
Hannah Carney started to cash stuff digitally using pots. She also uses the Salary Sorter to organise her income at the beginning of each month.
This has helped her to have a better overview of her finances and start making amends – including clearing around £4,000 of debt.