Last updated: 10 June 2026
By Stiv · Design, technology and personal finance
Monzo savings pots are one of the most useful features in UK banking, and most people still are not using them properly. If you have got a Monzo account and your spare cash is just sitting in the main balance earning nothing, you are leaving money on the table. Monzo savings pots take about 30 seconds to set up and start earning interest immediately. No paperwork. No separate app. Just tap, move money in, and watch it grow.
We have got about six pots running at any given time. Bills pot, holiday pot, emergency fund, a couple of savings pots earning interest, and one labelled "don't touch" that we absolutely do touch. It is one of those features that, once you start using it, you wonder how you ever managed without it.
This article is for general information only and does not constitute financial advice. Savings rates are variable and change frequently, so always verify current rates directly with providers. CoolCuration is not authorised by the Financial Conduct Authority. This article contains affiliate or referral links. If you click through and sign up I may earn a commission or referral bonus at no extra cost to you. It does not affect my editorial view.
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What are Monzo savings pots?
If you are new to Monzo, pots are separate spaces within your account where you can ring-fence money for different purposes. Think of them as digital envelopes. You can name them whatever you like, set goals, and add images to keep things organised.
There are two main types of pot. Regular pots earn no interest but help you organise your spending. You might use these for bills, groceries, or that "holiday fund" you keep dipping into. Then there are Monzo savings pots, which earn interest on your money through Monzo itself. These are the ones worth paying attention to.
Monzo used to offer savings pots through third-party banking partners like Shawbrook and Investec. However, they discontinued those partnerships in early 2025 and now provide all savings products directly. That means your savings sit with Monzo, protected by the same FSCS deposit protection as your current account.
You can have up to 20 savings pots within your personal or joint account. So there is plenty of room to separate your emergency fund from your holiday savings from your "new kitchen" fund.
What rates can you get on Monzo savings pots?
Monzo currently offers two types of savings pot, plus Cash ISA versions of both. Here is what each one pays. All rates in this article are correct at the time of writing (3 June 2026) and are variable unless stated otherwise.
Instant Access Savings
The instant access savings pots are the ones we use most. You tap to move money in, it starts earning interest immediately, and you can pull it back out whenever you need it. No waiting, no penalties. The rate is 2.75% AER (variable) on a free Monzo account. If you pay for Monzo Perks (£7/month) or Max (from £17/month), you get a 0.50% boost, bringing it up to 3.25% AER (variable). There is no minimum deposit, and you can save up to £1,000,000. Interest is paid monthly on the first of each month, directly into your pot.
Select Access Savings
This is Monzo's higher-rate option. It pays 3.15% AER (variable) on a free account or 3.65% AER (variable) with Perks or Max. The catch is you are limited to two penalty-free withdrawals per year per pot. Make a third withdrawal and your rate drops to 2.60% AER (variable) on a free account or 3.10% AER (variable) on paid plans until the pot's anniversary. You still get instant access to your money though. The minimum deposit is £500, and you can hold up to two Select Access pots on a personal account. This works well for medium-term goals where you probably will not need to dip in often.
Cash ISA pots
Monzo also offers both Instant Access and Select Access versions as Cash ISAs. The rates mirror the standard savings pots. Your ISA allowance for 2026/27 is £20,000, and Monzo's Cash ISAs are flexible, meaning you can withdraw and replace money in the same tax year without losing your allowance. Worth noting: from April 2027 the Cash ISA allowance is set to drop to £12,000 for under-65s (confirmed at the 2025 Autumn Budget), so this year is a good one to make the most of it. Tax treatment depends on the individual circumstances of each client and may be subject to change in future. For our full rundown of where to put your money this tax year, see our new tax year savings guide.
One honest observation: Monzo savings pots do not always offer the highest rate on the market. But the convenience of having your savings inside your banking app, one tap away, is worth a lot. We would rather earn slightly less and actually save than chase the top rate and never get round to opening the account.
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How FSCS protection works with Monzo savings pots
This is the bit most guides skip, so let us be clear. Because Monzo now holds all savings directly (rather than through third-party banks), your Monzo savings pots fall under Monzo's own FSCS protection. Eligible deposits are protected up to £120,000 per eligible person per UK-authorised bank, building society or credit union by the FSCS (since 1 December 2025). Monzo Bank Ltd holds its own banking licence (FRN 730427), so this covers everything in your Monzo current account, regular pots, savings pots, and Cash ISAs combined.
If you are saving large amounts, keep an eye on the total. Your Monzo current account balance plus all your pots counts as a single pool for FSCS purposes. Couples with a joint account get separate individual protection, so £120,000 each. For a detailed explanation, check the FSCS official website.
Setting up your first Monzo savings pot
Getting started takes less than a minute. Open the Monzo app, go to the Savings area, tap "Create a new pot", choose either Instant Access or Select Access, name it, set an optional goal, and make your first deposit. That is genuinely all there is to it.
Once you have a pot set up, two features make saving almost automatic. First, Round-ups. Turn this on and every card transaction gets rounded up to the nearest pound, with the spare change sent to your savings pot. Over a month, it adds up surprisingly fast. Second, Salary Sorter. When your pay arrives, Monzo lets you set rules to split it automatically between pots. We salary sort £200 into a savings pot on payday. It happens before we can spend it. That is the entire strategy.
If you want to go further, Monzo also offers a 1p Saving Challenge. You save 1p on day one, 2p on day two, and so on, ending up with £667.95 by the end of the year. The Challenge Pot pays 5% AER (variable), which is higher than the standard savings pots, but it is only available on a paid Monzo plan (Extra, Perks or Max), not the free account. So new customers can get that rate too, just not without subscribing to one of those plans.
What is new for 2026/27
Monzo has made several changes to its savings products over the past year. The biggest shift was consolidating everything under Monzo's own banking licence, removing the third-party provider marketplace entirely. On one hand, this simplifies things. On the other, it means you cannot shop around between providers inside the app any more.
Select Access is a relatively new product type for Monzo, offering a middle ground between instant access and the old fixed-term pots (which are no longer available). If you have money you will not need for a while but want the option to access it in an emergency, Select Access fills that gap nicely.
Monzo has also expanded into investing. You can now open a Stocks and Shares ISA directly in the app, alongside your savings. We have written a full review of Monzo Invest if you want to dig into the fees and fund options. Remember, your capital is at risk when you invest: the value of investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.
Monzo savings pots vs the alternatives
Monzo is not the only option when it comes to savings. Here is how it stacks up against the main competitors.
Monzo vs Chase
Chase's standard saver pays 2.25% AER, which tracks 1.50% below the Bank of England base rate. For new customers, a 12-month boosted rate pushes that up to 4.50% AER, one of the best easy-access rates available. After the boost expires, though, you drop back to the standard rate. Monzo's base rate is higher at 2.75% for non-promotional accounts, and its app integration with spending and budgeting tools is hard to beat. For a deeper comparison, see our Monzo vs Chase breakdown.
Monzo vs Chip
Chip's strength is automated saving. Its AI analyses your spending and quietly moves money you can afford to save. Their Easy Access Saver pays a standard 3.50% AER (variable), with new customers getting a boosted 5.01% AER (variable tracker) for 6 months with a valid promo code, while the Instant Access account offers 2.49% standard or 3.71% boosted for new customers (12 months). Chip is a great choice if your biggest challenge is actually putting money aside. However, it is a dedicated savings app rather than a full bank account, and a £1,000 minimum balance applies to its savings accounts. For more on Chip, read our Chip Prize Saver vs Premium Bonds comparison.
Monzo vs Zopa
Zopa's Biscuit account offers competitive rates with a clean, simple interface. It is worth considering if you want a standalone savings account that is not tied to a specific current account. We have a dedicated Monzo vs Biscuit comparison if you are weighing them up.
Monzo vs Marcus by Goldman Sachs
Marcus is the traditional comparison point. Their easy-access account pays 3.75% AER (including a 0.49% bonus for 12 months), and their one-year fixed rate saver sits at 3.80% AER. Marcus consistently offers strong rates and its FSCS protection gives peace of mind. The trade-off is that Marcus is just a savings account. No budgeting, no pots, no spending insights. If all you want is the best rate, Marcus often wins. If you want your savings and spending in one place, Monzo has the edge.
Trading 212 Cash ISA
If you are specifically looking for a Cash ISA, Trading 212's standard rate is 3.60% AER (it tracks 0.15% below the Bank of England base rate), plus a promotional boost for new customers that is fixed for 12 months. That promo rate changes regularly, recently sitting in the region of 4.6% to 4.8% AER, so check the live figure before applying. It remains one of the higher-paying easy-access Cash ISAs, though withdrawals can take up to three business days, so it is not truly instant access. For a closer look, see our Trading 212 page.
NS&I Premium Bonds
The prize fund rate dropped to 3.30% in April 2026 with odds of 23,000:1. NS&I has since confirmed it will rise to 3.80% from the July 2026 draw, with odds improving to 22,000:1. Premium Bonds remain tax-free and backed by the Treasury, though the average return still trails the top easy-access accounts, and there is no guarantee you will win anything.
Each alternative has a strength. Chase has that big introductory rate. Chip automates saving so you do not think about it. Marcus consistently delivers strong rates. But none of them combine savings, spending, and budgeting in one place the way Monzo does. For a broader comparison across providers, see our best savings accounts page.
If you are considering a stocks and shares ISA alongside cash savings, our best investment ISA 2026 guide is worth a read. Also check best referral offers UK for all our current referral offers, and best investment referral deals if investing interests you too. Just remember investments can fall as well as rise. You might also want to read how Monzo compares to Starling overall if you are still deciding which digital bank suits you best.
Frequently asked questions
How do Monzo savings pots work?
Monzo savings pots are separate spaces within your account where you can set aside money and earn interest. You create a pot in the app, choose either Instant Access or Select Access, deposit money, and start earning interest from that day. Interest is calculated daily and paid monthly on the first of each month. You can name your pots, set savings goals, and use automatic features like Round-ups and Salary Sorter to build your savings without thinking about it.
What interest rate do Monzo savings pots pay?
As of June 2026, Instant Access savings pots pay 2.75% AER on a free account or 3.25% AER with Monzo Perks (£7/month) or Max (from £17/month). Select Access pots pay 3.15% AER (free) or 3.65% AER (paid plans), with a limit of two penalty-free withdrawals per year. Rates are variable and can change, so always check the latest rates in the Monzo app or on monzo.com.
Are Monzo savings pots FSCS protected?
Yes. Monzo is a fully regulated UK bank and your eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per eligible person per UK-authorised bank, building society or credit union (since 1 December 2025, increased from £85,000). This covers your current account, regular pots, savings pots, and Cash ISAs combined.
Can you have more than one Monzo savings pot?
Yes. You can have up to 20 savings pots on a personal or joint account. This includes a mix of Instant Access and Select Access pots (though Select Access is limited to two). You can also hold Cash ISA pots with multiple sub-pots within the same ISA.
What is the best Monzo savings pot?
It depends on how often you need access to your money. For everyday savings where you might dip in occasionally, Instant Access is the easiest option. For longer-term goals where you will not need to withdraw more than twice a year, Select Access pays a higher rate. If you are a higher-rate taxpayer or have savings above your Personal Savings Allowance, a Cash ISA version of either pot shelters your interest from tax.
Is Monzo better than Chase for savings?
Chase offers a higher introductory rate (4.50% AER for 12 months for new customers), but its standard rate is 2.25% AER, which is lower than Monzo's 2.75%. Monzo also integrates savings directly with budgeting tools, bill tracking, and spending insights. If you want the best rate and are happy switching after 12 months, Chase's boost is hard to beat. If you want long-term convenience in one app, Monzo edges ahead. We cover this in detail in our Monzo vs Chase guide.
Can you set up auto-saving on Monzo?
Yes. Monzo offers several automated saving features. Round-ups automatically save your spare change from card transactions. Salary Sorter lets you split your pay into different pots on payday. You can also set up scheduled deposits to move a fixed amount into your savings pot at regular intervals. These features work with both regular pots and savings pots.
Does Monzo have a Cash ISA?
Yes. Monzo offers both Instant Access and Select Access Cash ISAs. They work the same as the standard savings pots but your interest is tax-free. The ISA allowance for 2026/27 is £20,000 across all ISA types. Monzo's Cash ISAs are flexible, so you can withdraw and replace money in the same tax year without losing your allowance. Since April 2024, you can also hold multiple Cash ISAs with different providers in the same tax year.
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This article is for general information only and does not constitute financial advice. All rates quoted are correct at the time of writing (3 June 2026, Chip rates re-checked 10 June 2026) and are variable unless stated; savings and investment rates can change at any time, so always verify current rates directly with providers before making decisions. Investing carries risk and your capital can go down as well as up. Consider speaking to an independent financial adviser if you need personalised guidance. CoolCuration is not authorised by the Financial Conduct Authority. This article contains affiliate or referral links; if you sign up via links on our site we may receive a referral reward at no extra cost to you, and it does not affect our editorial view.
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