Digital challenger bank Monzo has launched a ‘coin jar’ feature which automatically deposits money into a designated savings pot every time a customer makes a transaction.
Monzo customers can create a ‘coin jar’ by selecting the ‘create pot’ button within the app and naming the pot ‘ coin jar’. Once created, on all customer purchases over £1 the app will round up the purchase to the next whole pound and deposit the difference, with an update on the account’s transaction feed indicating how much has been saved.
The feature only operates when the customer’s balance is over £10 to avoid accounts falling to zero or activating the overdraft feature.
Whilst Monzo’s savings pots do not earn interest currently, Monzo plans to eventually provide users with the ability to change the saving pots into ISAs or investment portfolios.
RFi Group data indicates that a roundup feature will be enticing to Millennials and Gen X customers, with 12% and 9% respectively placing it in their top 3 most desired features for a mobile banking app.
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