This guide is part of the Monzo hub, covering everything from Monzo’s core features to fees, limits, and savings options.
Monzo does not offer a traditional separate savings account. Instead, all savings live inside Pots — named sub-accounts within your Monzo account. Some Pots earn interest; others simply ring-fence money for a goal.
Monzo Pot Types — Summary
| Pot type | Interest | Access | Best for |
|---|---|---|---|
| Standard Pot | 0% | Instant | Budgeting, goal-setting without interest |
| Instant Access Pot | Variable AER (via partner banks, varies by plan) | Instant | Emergency fund, short-term saving |
| Locked Pot | Fixed AER for term | Locked until end date | Fixed-goal saving, preventing impulse spending |
| Round-up Pot | 0% (unless interest-bearing) | Instant | Automatic micro-saving |
| ISA Pot | Variable or fixed AER | Varies | Tax-free savings up to £20,000/year (2026/27) |
Instant Access Pots
Instant Access Pots are the closest Monzo has to a traditional easy-access savings account. Key facts:
- Operated via Monzo’s partner banks (OakNorth, Aldermore, and others)
- Interest is variable — the rate shown when you open the Pot applies until Monzo changes it, and depends on which Monzo plan you’re on
- Money can be withdrawn instantly, 24/7
- FSCS-protected separately under each partner bank’s £120,000 limit
- Monzo’s paid plans generally unlock a higher rate than the free account — the exact gap changes over time
Check the current rate in the Monzo app under Savings before opening. Rates change and are not guaranteed — don’t rely on a figure quoted in this or any other article.
Locked Pots
Locked Pots pay a fixed interest rate in exchange for locking your money until a chosen end date:
- Terms typically from 3 to 12 months
- Generally pay a higher rate than Instant Access Pots on the same plan — confirm current rates in-app
- Cannot withdraw early without contacting Monzo support
- Good for money you know you won’t need — holiday fund, annual bills, a tax pot
Monzo Cash ISA
Monzo has offered a Cash ISA to UK residents. The annual ISA allowance is £20,000 for the 2026/27 tax year (unchanged from 2025/26). ISA availability and rates change — check the Monzo app under Savings → ISA for the current offer.
Should you use a Monzo ISA? Only if the rate is competitive. Monzo’s ISA rate is not always market-leading. Before opening, compare against:
- NS&I
- Marcus by Goldman Sachs
- Chase UK
- Dedicated building societies
Is Monzo Good for Savings?
| Situation | Verdict |
|---|---|
| Want to save inside your banking app | ✅ Good — Pots are seamless |
| Need instant access | ✅ Good — Instant Access Pot |
| Want a fixed rate | ✅ Good — Locked Pot |
| On a paid Monzo plan | ✅ Generally better rates on Pots |
| Maximising interest on large balances | ⚠️ Compare elsewhere — dedicated providers often pay more |
| Want a cash ISA | ⚠️ Check rate vs. best-buy ISAs first |
Monzo is convenient for savers who want everything in one app. For maximising returns on larger balances, compare dedicated savings accounts and ISA providers, which often outperform Monzo’s standard rates.
Round-Up Pots
Round-up Pots automate micro-saving: every card purchase is rounded up to the nearest pound and the difference is transferred to a chosen Pot. This is a useful way to build a savings habit with no manual effort. You can enable round-ups in the Monzo app under Account → Round-ups.