By Chandraketu Tripathi · Updated April 2026 · Fact-checked Savings · April 2026Monzo has grown from a cult app-based current account into a fully featured savings platform. In 2026, Monzo offers instant access savings pots and a flexible Cash ISA — both paying competitive rates with the simplicity the app is famous for. But how do the rates compare to dedicated savings providers?
Monzo Savings Pots ExplainedMonzo savings pots are sub-accounts within your Monzo current account. Standard Monzo customers earn 4.10% AER on their savings pot balance, while Plus (£5/month) and Premium (£15/month) subscribers earn an enhanced 4.60% AER. Interest is paid monthly and there is no minimum deposit — you can start saving from £1. One important change: Monzo discontinued its fixed term savings accounts in March 2025. All savings pots are now instant access only. If you want to lock money away for a higher fixed rate, you will need to look at dedicated providers such as SmartSave, Aldermore or Raisin. Monzo Cash ISA 2026The Monzo Instant Access Cash ISA pays 3.75% AER — lower than the market-best rates but with the convenience of managing it inside the Monzo app alongside your current account. It is a flexible ISA, meaning withdrawals do not reduce your annual ISA allowance for that tax year. There is no minimum deposit and the ISA allowance for 2026/27 is £20,000. 💡 Monzo's Cash ISA rate of 3.75% AER is competitive but not market-leading. The best easy-access Cash ISAs in April 2026 pay 4.51-4.84% AER. If you are happy to use a separate app for your ISA savings, you could earn significantly more elsewhere. However, if Monzo is your primary bank, the convenience of one app makes it a reasonable choice. How Does Monzo Compare?
⭐ OUR VERDICT Monzo savings is best for existing Monzo current account customers who value simplicity over maximum rate. The 4.10% AER standard rate is competitive for an instant access account. Plus and Premium subscribers earn 4.60% AER which is market-leading for app-based savings. However, Monzo's Cash ISA rate of 3.75% lags behind specialists like Chip and Plum. If maximising your ISA rate is a priority, open your ISA elsewhere and keep Monzo for current account convenience. Frequently Asked QuestionsIs Monzo savings FSCS protected? Yes. Monzo is a fully licensed UK bank (Monzo Bank Ltd) regulated by the FCA and PRA. Your savings are FSCS-protected up to £85,000 per person. Can I have a Monzo savings pot and a Cash ISA? Yes. You can hold both a savings pot and a Cash ISA with Monzo simultaneously. The ISA is a separate wrapper and the interest earned within it is tax-free. What happened to Monzo fixed rate savings? Monzo discontinued its fixed term savings accounts in March 2025. All Monzo savings options are now instant access. For fixed rate bonds, you will need to use a dedicated savings provider. Does Monzo savings pot count towards my ISA allowance? No. A Monzo savings pot is a standard savings account — the interest earned counts towards your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate). Only the Monzo Cash ISA wrapper provides tax-free interest. |
Monzo Savings Account Review 2026: Rates, Pots & Cash ISA Compared
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