- Bank is releasing its third 'Year in Monzo' letting customers see their spending
- It also revealed £80m in spare change was rounded up last year
- Customers tell us how they locked savings pots and used pictures of the home they wanted to buy to get themselves into the savings habit Monzo customers collectively stashed away £80million in rounded up spare change last year as the smartphone bank's millennial user base got in on the nation's saving habit.
The amount saved by a fifth of its customers this way, around £80 each, rose a third on the £60million saved in 2019, according to figures provided exclusively to This is Money by the bank.
It comes as Monzo, best-known for its enthusiastic customer base and hot coral coloured debit cards, releases its third annual 'Year in Monzo', which gives its nearly 5million users a snapshot of where they spent the most money.
The feature first launched in January 2019, covering spending in 2018, and frequently sees Monzo customers post their results on social media.With the coronavirus pandemic upending the ability of people to spend on in-person activities due to lockdowns, the spending patterns of Monzo customers who posted their results on social media looked a little different to previous years.Takeaway services like Deliveroo and Just Eat were the most popular spots for 'eating out' for some users as they were forced to stay, while the likes of Amazon, Apple, Netflix and Nintendo kept users entertained during the lockdown.
'Seeing as the only times I've really been out during lockdowns is to "essential shops" my #YearinMonzo is a state', one user who 'ate out' 48 times at UberEats and made 43 purchases at the Post Office said on Twitter.
'Deliveroo is the real MVP of 2020', said another.
But the figures provided to This is Money also suggested its customers were equally as keen on saving as spending, with one customer on Twitter revealing they had saved more than £1,100 in rounded up spare change in 2020.
Customers of the app-based bank saved into 5million 'pots' in 2020, which let users separate out money from their main bank account, half of which were created with specific 'goals' in mind.
These included rainy day funds and saving toward weddings, holidays and house deposits, while a Facebook group detailing the habits of some customers, the 'Monzo Saving Squad', has more than 14,000 members in it.
Customers of the bank who spoke to This is Money told us how the bank's budgeting features had helped them clear £20,000 of debt and afford a house, stop spending money they didn't have and finally save enough money to pay their car insurance bill in one go without needing a credit card.
Monzo's pots, which can be locked or hidden from view to discourage customers from dipping in, were home to some of the nearly £1.4billion of customer deposits held by the bank at the end of last February, according to its latest financial results released in July, which warned the pandemic had 'significantly impacted' its revenue.
Those figures suggested the bank was more popular as a budgeting tool than it was as a full current account, with £1.4billion working out at around £357 per customer at the time.
However, the increase in rounded up spare change, coupled with Britain saving record amounts of money last year, suggests this number could well have risen.
Monzo also revealed £1.2billion was saved into savings accounts customers were able to set up with partner banks, from which Monzo earns commission.
Founder and former chief executive Tom Blomfield previously suggested this marketplace model, with customers also able to switch energy bills in its app, could eventually account for four fifths of the bank's income.
Some of the banks Monzo has a tie-up with include Paragon Bank, Shawbrook Bank, Charter Savings Bank, Investec Bank and Oaknorth.
However, those Monzo customers who have stashed away that £1.2billion can earn more by going to the banks directly, as This is Money has previously reported.
The best and currently the only easy-access account available through Monzo's savings pots is offered by Paragon Bank and pays 0.15 per cent, but the bank offers 0.25 per cent to savers if they go directly, with a tax-free Isa also available paying the same rate.
And the best fixed-rate is offered by Charter Savings Bank, paying 0.45 per cent.
However, savers can earn 0.61 per cent on a one-year fixed-rate Isa by going to the bank itself, while it also offers an easy-access account paying just 0.05 percentage points less.