Monzo is partnering with OakNorth to launch a range of savings account products to customers in the UK.

This tie-up between the two digital banking challengers will allow Monzo’s 1.6 million customers to open a Cash ISA and other services via OakNorth’s savings platform. OakNorth has 40,000 savings customers on its digital platform.

Monzo will enable users of its mobile banking services to choose OakNorth’s savings options with rates of up to 1.55 per cent through the Monzo app. An easy-access cash ISA will launch next Monday, while other products will become available in the coming weeks.

Currently, Monzo customers can deposit money in a “normal pot” to set aside small amounts of cash with instant, free access the cash instantly; but doesn’t pay interest.

The OakNorth platform will offer Monzo customers a range of services, including an an easy-access account offering 1 per cent AER; a six-month fixed term account offering 1.36 per cent AER; a 12-month fixed term account offering 1.53 per cent AER; and a personal easy-access cash ISA offering of 1.14 per cent AER.

The move to consolidate Monzo’s services via a fellow digital challenger for a savings offering comes as the UK’s leading FinTechs seek avenues to a growing range of lucrative traditional retail banking options.

Monzo’s shift into savings comes after Goldman Sachs launched Marcus, a digital consumer savings platform with a 1.5 per cent interest rate, in August last year.

Tom Blomfield, co-founder and chief executive of Monzo, 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 maintain an overall view of their personal finances.”

Amir Nooriala, chief operating officer of OakNorth, said: “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 their money in one place.”

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