Latest news with #MonzoBank
The Sun
17-05-2025
- Business
- The Sun
Major online bank with millions of customers to make huge change in two weeks
RATE IT Do you have a money story you would like to share? We'd love to hear from you - email us on money@ Published : 13:56, 17 May 2025 Updated : 13:56, 17 May 2025 A MAJOR online bank with millions of customers will make a huge change in just two weeks. Monzo Bank has slashed the interest rates on one of its savings accounts. 1 Monzo will slash the interest rates on one of its savings accounts Credit: Alamy It comes after rate-setters on the BoE's Monetary Policy Committee last week cut the base rate from 4.5% to 4.25%. This was the fourth interest rate cut since 2020. The base rate is used by lenders to determine the interest rates offered to customers on savings and borrowing costs. A base rate cut can mean that mortgage rates are lowered, which is good news for homeowners. But savers can be left with the short end of the stick as the interest rate they earn on their savings can also drop. As the base rate falls, some savings providers, including Monzo, have chosen to lower the interest rates on some savings accounts. Monzo said it would lower the intertest on its Personal Instant Access Savings Pots from from 3.50% AER to 3.25% AER. AER, or Annual Equivalent Rate, is used to show you what you could earn from a savings account over a year. A lower AER means you will have less money in your savings account over a year because it indicates a lower rate of interest being paid on your savings. Monzo, which only operates online, said it would make the changes automatically on May 27 2025. I've started saving up for next year's energy bills using savvy £1 hack.. It told customers to check its app and look for other types of Savings Pots they have available. Customers could move their money elsewhere at any time. Monzo Personal Instant Access Savings Pots are a way to save money while still being able to withdraw it whenever you need it. They're used by customers as a flexible option for saving towards short-term goals, like building an emergency fund or saving for a holiday. Elsewhere, Barclays , Nationwide and Lloyds have all confirmed their customers on standard variable rate (SVR) and tracker mortgages will benefit due to the rate cut. Barclays confirmed all its mortgage products that track the base rate will decrease by 0.25%. Existing customers will see their rates change from June 1. New customers will have access to the new lower rates from May 9. Barclays' standard variable rate mortgage is 3.49% above the base rate. It currently stands at 7.99%, but following today's announcement it will drop to 7.74% on June 1. Nationwide customers will also see interest rate reductions of 0.25%. Those on standard variable rate mortgages will start getting their new rate on June 1. It will drop from 7.24% to 6.99%.Tracker mortgages will also reduce on June 1. Homeowners with Lloyds will also see changes to their mortgage payments on June 1. The Lloyds Bank Homeowner Variable Rate currently sits at 7.99% but will reduce to 7.74%. Different types of mortgages We break down all you need to know about mortgages and what categories they fall into. A fixed rate mortgage provides an interest rate that remains the same for an agreed period such as two, five or even 10 years. Your monthly repayments would remain the same for the whole deal period. There are a few different types of variable mortgages and, as the name suggests, the rates can change. A tracker mortgage sets your rate a certain percentage above or below an external benchmark. This is usually the Bank of England base rate or a bank may have its figure. If the base rate rises, so will your mortgage but if it drops then your monthly repayments will be reduced. A standard variable rate (SVR) is a default rate offered by banks. You usually revert to this at the end of a fixed deal term, unless you get a new one. SVRs are generally higher than other types of mortgage, so if you're on one then you're likely to be paying more than you need to. Variable rate mortgages often don't have exit fees while a fixed rate could do.
The Independent
14-05-2025
- Business
- The Independent
Bank launches first-ever option to undo payments
Monzo is introducing a new feature that allows customers to cancel a bank transfer within seconds of realising they've made a mistake. The 'undo payments' tool gives users a window of 10 to 60 seconds to halt a transaction if they spot an error, such as sending the wrong amount or to the wrong recipient. The online bank says the feature offers a "comfort blanket", turning "a moment of panic into relief". The tool could also prove crucial in preventing fraud, allowing customers to quickly react if they suddenly have second thoughts about the recipient. Andy Sacre, Head of Payments at Monzo said: 'We know it's important to be able to send money quickly and easily - but we also know that mistakes can happen, whether that's sending the wrong amount to someone or paying the wrong person. 'In another industry-first, we're bringing the best of banking and technology together to solve that problem for our customers, with this simple yet powerful feature that ensures they can send money with Monzo more confidently and safely than ever before.' Monzo customers can configure the timer, choosing between 10 seconds, 15 seconds (which is the default setting), 30 seconds, and 60 seconds. The timer will appear on the payment confirmation screen with an option to undo the payment. Someone can tap the 'undo payment' button from there, or from the home screen or payment detail screen, before the timer runs out, the bank said. If the button is tapped, the payment will not leave the sender's account, and the potential recipient will be unaware that the money was nearly sent to them, Monzo added. Research from the mobile bank found that people in the UK lose around £825 million annually due to online payment errors, which inspired the new feature. In over two-thirds of these cases, people say the mistake was caused by a typing error, such as adding an extra zero by accident. The feature will start to be rolled out to Monzo customers from Wednesday.
Metro
14-05-2025
- Business
- Metro
Bank customers given option to undo payments in 'industry first'
If you ever get buyers' remorse after paying for things like a gigantic Snorlax, TukTuk, or even a bus, help is at hand. Monzo Bank have introduced an 'undo payment' feature which they claim is an industry first. It means that if you send a payment and immediately have second thoughts, there's a way back from the precipice. The feature could be helpful if someone sends money to the wrong person, types in the wrong number of zeros, or at the last minute realises they have been scammed. You'll have to be quick if you want to use the feature, though, as it will only work for up to 60 seconds after the payment is sent. The Undo Payments feature will begin rolling out to the 12 million Monzo customers from today and will be a 'comfort blanket' giving users peace of mind with their transfers, the bank said. After making a bank transfer, customers will see a timer appear on the payment confirmation screen with an option to undo the payment (the default time is 15 seconds). The customer can tap the 'Undo Payment' button there, or from the Home screen or payment detail screen, before the timer runs out. As soon as the user hits that button, Monzo stops the payment from being sent. The money never leaves the account, and the person or business won't even know that the money was almost sent to them. Customers can configure the Undo Payments timer, choosing between the following lengths of time to undo a payment, or turn it off all together: 10 seconds 15 seconds (default) 30 seconds 60 seconds They shared their research carried out by Censuswide showing that almost one in three Brits (30%) have either sent money to the wrong person or sent the wrong amount in the last year. The data which studied of 2001 representative Brits highlighted that over three quarters of those who sent a wrong payment (78%) realised they'd made an error within a minute of it happening. This is a major issue: the bank says that over £825m was sent by mistake in the past year. Over two thirds of Brits (68%) who this affected claim a simple typing error, such as adding a zero, was the reason for sending a wrong payment. But trying to retrieve mistakenly sent payments from any bank is usually a long process, with no guarantee of success. The new 'undo payment' feature offers a customisable 10-60-second window that allows customers to cancel a bank transfer. In terms of how it works, it's really more of 'delayed payment' option, as the payment is not actually made to anyone else's account until the buffer time runs out. More Trending In recent years, the options for editing things once they have been sent have become more widespread. It is now possible to edit WhatsApp messages, iMessages and tweets within a certain time frame, whereas in the past you just had to live with the annoying typos. Andy Sacre, head of payments at Monzo, said: 'We know it's important to be able to send money quickly and easily – but we also know that mistakes can happen, whether that's sending the wrong amount to someone or paying the wrong person. 'In another industry-first, we're bringing the best of banking and technology together to solve that problem for our customers, with this simple yet powerful feature that ensures they can send money with Monzo more confidently and safely than ever before.' Get in touch with our news team by emailing us at webnews@ For more stories like this, check our news page. View More » MORE: Major UK bank with over 2,500,000 customers to hike account fees within weeks MORE: Full list of 45 NatWest branches closing in UK in 2025 MORE: Lloyds and Halifax down leaving thousands of customers locked out of banking apps
