By Liza Tetley on Thursday 24 March 2022
The neo-bank for affluent clients says its rates are the best in the market for its categories, with AER ranging up to 2.4%.
Bucking the trend towards low interest rate offerings by other banks, digital bank Monument has launched new 12-month, 2-year and 5-year savings products that offer rates of 1.8, 2.05 and 2.4 per cent respectively.
Aimed at the bank’s core client-base of “mass affluent” individuals, the minimum deposit threshold is steep – at £25,000 at any one time – and funds cannot be accessed until the end of the term.
The bank claims its new savings products, which are only open to UK residents, are the highest paying in the market for this selection of fixed-term durations.
The news comes shortly after the bank announced its entry into the savings market and launched its app in December last year.
Having received its full banking licence in November 2021, Monument claims it is the first neo-bank specifically tailored to meeting the demands of the UK’s 4.8m “mass affluent clients”, including entrepreneurs, property investors, and others.
Using cloud and microservices technology, enabling a plug and play approach, Monument helps its clients save and grow their wealth – estimated at £6trn.
“We’re pleased to be offering a range of savings choices to consider, all at competitive rates,” said John Saunders, CCO at Monument. “Inflation is a real and growing feature of personal finance, so leaving savings in low (or no) interest bearing accounts makes less sense than ever.”
The bank says it believes that client loyalty should be rewarded, so offers better rates to existing clients that renew a savings or lending product, than are available to new clients.