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Monzo savers are being short-changed more than a fifth of their interest

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Monzo has added new partner deals since April Credit: Monzo

Monzo customers are losing more than a fifth of their interest earnings by opening a savings account using the bank’s app.

The digital bank offers its loyal users savings deals through tie-ups with partner banks, but in each case the rates on offer are significantly lower than the customer could get by going direct to the third-party firm.

This discrepancy was first revealed by Telegraph Money in April, and since then Monzo has added several new partner deals. In each case users will still be left out of pocket by opening these accounts through its app.

A user taking out an easy-access saver with Shawbrook Bank would earn 1.43pc by going direct compared to 1.12pc through Monzo. This is equivalent to a 22pc loss and also applies to those saving in Shawbrook's easy-access Isa.

Investec offers 1.6pc to savers opening its one-year account directly while Monzo customers will earn 1.55pc – a shortfall of 3pc.

While both of these accounts have lower minimum balance requirements through Monzo, that is not always the case. With the OakNorth easy-access saver, customers must meet a higher pay-in threshold and still are rewarded with a significantly lower rate.

Those going direct to OakNorth will achieve 1.2pc versus 1pc through Monzo, a loss of 17pc. They must also deposit at least £500, compared to £1 for direct customers.

Monzo argued that the majority of easy-access savings accounts on the market currently pay less than 1pc in interest. It said that the price of convenience, thanks to not dealing with multiple banks, was one its customers felt worth paying.

A spokesman said: “Not knowing about the good deals that are out there, and the hassle of dealing with multiple banks and building societies, is what holds people back from getting more from their savings.

“Your Monzo bank account gets you higher interest rates with just a few taps and our app is transparent in saying you could get higher rates by going direct."

The bank predicted that rates would increase as more banks started to offer savings accounts through its marketplace.

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