Challenger banks Oaknorth and Monzo team up to launch savings accounts

Fintech banks Oaknorth and Monzo have launched a partnership that will allow Monzo users access to a high-interest savings account for the first time.

The challenger bank tie-up will allow customers to open a range of savings accounts, with rates of up to 1.55 per cent, within minutes in the Monzo app.

An easy-access cash ISA offering 1.14 per cent AER will be available next Monday and other products will launch over the next few weeks.

Monzo added that additional partnerships with other savings providers are in the pipeline.

Co-founder and chief executive of Monzo Tom Blomfield said: “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.

“Partnerships like this one are part of our plan to give customers more choice and control over their money.

“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.”

Currently Monzo users are able to set money aside in pot as a method of saving, however, the feature does not offer interest rates.

Oaknorth chief operating officer Amir Nooriala said: “Since our launch in September 2015, we have proven our ability in the UK savings market, providing tens of thousands of British savers with the opportunity to make a better return on their savings.

“Through this partnership with Monzo, we’re opening up the marketplace for the millions of savers who could benefit from better rates, whilst also giving them the added benefits of ease, convenience and usability that come with managing money in one place.”