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The problems with the Monzo and OakNorth ISA

Monzo’s decision to offer customers access to an ISA provided by fellow UK challenger bank OakNorth has been met with a number of questions about the banking industry and also resulted in unwanted headlines for Monzo. A leading financial services expert explains why the latest savings offering is risky

FS Jul Aug 2019 - AV image The move by Monzo to offer its customers access to an ISA provided by fellow UK challenger bank OakNorth raises a number of questions about our current banking market and customer attitudes to saving.

The element that has attracted headlines – mainly unwanted ones for Monzo – revolves around the rate on offer. The bank’s repackaged version offers customers a rate of 1.14%; a pretty shabby rate by historic standards but not in today’s depressed market.