Monzo and OakNorth join forces to offer savings accounts in challenger bank tie-up
Savings accounts will launch for Monzo’s 1.6m customers on Monday, powered by fellow fintech unicorn OakNorth.
The partnership will see Monzo launch seven types of savings ‘pot’, ranging from an easy-access account offering 1% AER all the way to a 12-month fixed-term account boasting a 1.53% AER.
Two of the accounts are available in a cash ISA, with an easy-access account at 1.14% AER and a 12-month fixed account at 1.38% AER.
Both banks are among the UK’s most well-funded and valuable fintechs, OakNorth recently closed a $440m investment round led by SoftBank at a $2.8bn valuation, while Monzo last year hit a billion-dollar valuation after raising £85m.
The news came just hours after OakNorth reported a 220% increase in profits last year to £33.9m.
“ISAs and higher interest rates on savings are something our customers have been asking for, so we’re really excited to be launching them in time for the end of this tax year,” said Monzo cofounder and CEO Tom Blomfield.
“We want to give our customers access to a wide range of products and services from across the market, so they can choose what works for them and get an overall view of their finances.”
Monzo said seven accounts will be available, with the personal easy-access cash ISA launching Monday.
The minimum deposit in these savings pots will be £500, with a maximum total balance across all savings pots of £500,000, and up to £20,000 in a Cash ISA in each the 2018-19 and the 2019-20 tax years.
Monzo said it will receive a small revenue percentage as part of the deal, and OakNorth said it will continue to offer different products directly through its website.
The partnership isn’t exclusive and Monzo said it plans to partner with other savings providers soon.