Monzo has disclosed that the highest amount saved by an individual customer using its roundup feature is around £45,000. Roundups function by rounding up each card transaction to the nearest pound, with the spare change automatically moved into a digital savings pot.
On average, Monzo customers save about £109 per year through roundups. Other major banks offering similar roundup features include Chase, Starling, NatWest, Lloyds, RBS, Halifax, TSB, and Revolut.
These latest statistics coincide with the approaching ISA deadline. Each tax year provides a £20,000 allowance that can be distributed across various ISAs – unutilized amounts cannot be carried forward.
As the tax year concludes on April 5, now is an opportune moment to evaluate the effectiveness of your savings strategy. Tailoring the right savings approach depends on individual circumstances and financial goals.
To provide insight into saving options, Joanne Phillips, General Manager (Wealth) at Monzo, shared advice on maximizing savings. She emphasized the importance of taking small steps, such as starting with simple methods like roundups.
Phillips recommended prioritizing an emergency fund equal to three to six months of essential expenses. Additionally, she advised layering short-term savings, followed by considering medium to long-term investments like cash ISAs and stocks and shares ISAs.
Starting in April 2027, the cash ISA limit for individuals under 65 will decrease to £12,000, while the overall ISA limit remains at £20,000. This adjustment aims to encourage more people to explore stocks and shares investments.
Phillips highlighted the importance of educating individuals about these upcoming changes and fostering a collective effort to enhance saving and investing practices for the future.