No your trying to think of a solution that works for you. but doesn’t solve the issue monzo are experiencing
Of course you are…even if that is the case then why word yearly be better? The vast majority of user won’t be having 12 equally spaced out holidays each year.
What about a system where you charge higher i.e. 7% for all transactions, however if you meet certain criteria e.g. for the 3 months after FX you’ve used your Monzo account regually such £1,000 per month worth of transactions then you get refunded the 7%. Using the intrest from the interim to cover the initial cost?
Hmm, no I don’t.
But I don’t think you can blame Monzo for wanting to adjust this so the unpredicted use case doesn’t bankrupt them!
Before I start, I will declare that as of now I am one of the minority that is likely to be benefiting a lot from the lack of ATM withdrawal fees as I am a UK student on my year abroad in Peru and will be here for a further 3 months (having been here for almost 2 already). Peru is annoyingly cash-driven for the most part, but I knew the lack of withdrawal fees would not be sustainable in the long term and was always realistic in expecting this to happen - I have no problem with having to implement a new system.
I voted option 3 as I think it’s the utilitarian option that would be best for the most users, but can see issues with this for many of the reasons highlighted in various replies above (a flat rate would probably benefit me personally the most). Either a reward system or an annual allowance would be best in my eyes: I will happily continue to use my card when I return to the UK, especially if incentive was added with better percentages abroad inside and outside of Europe as I’m likely to travel a lot for work for the future with the direction I’d like to go in life. Spending a set amount (I have seen £1000 mentioned various times) would however run the risk of alienating those on lower incomes. As a student I love Monzo for the ability to be able budget easily but I am unlikely to to be reaching that quota each month. An annual cap would also cater to more people and I’d also bear in mind that a monthly cap is likely to be the reason why some people moved from your competitors to you in the first place.
On that note, you are better off comparing yourselves with banks like Metro, Revolut, etc rather than the ‘big’ banks - we all know that the rates abroad for most banks are useless, hence we’re turning to banks such as yourselves (and your competitors) in the first place.
I like option 1.
If you take into account the better interest rate you receive it still makes it the cheapest way to get foreign cash.
Also i wonder if cash back has any chance here.
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How about allowing people to choose which option suits them on account opening. Appreciate that means you may have to ‘recost’ the options themselves.
(I’ve gone with the 61% - option 3 - myself, at time of keying this!)
Yep - this is a good idea. Small monthly allowances are pretty meaningless unless you just go abroad regularly for a day or two. I think most users will take it over for one or two expensive holidays a year so a fair initial allowance and then enough of a fee to make sure Monzo doesn’t make a net loss would be good.
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All the freeloaders loving option 3 I see 
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I would prefer a yearly limit maybe somewhere around the £1000 mark
I am using Starling in Turkey now to withdraw cash from ATM’s. I have also used Monzo for purchase in shops etc.
For me Starling appears to be the better option.
I will wait and see the outcome though
Perhaps I didn’t explain it as well as I could.
My point is 10 years ago I’d never dream of going to Europe and not taking travel money. For the past 2 years I have not taken travel money anywhere, I’ve only used card and might withdraw a small amount of cash for the occasional purchase when I’m out there. In another 10 years cash will have less place in society than it does now, look at TFL as an example.
Card processors, MC/Visa and consumer demand put pressure on retailers to accept cards, but many people still pay for goods using cash even when they could use a card - at home and abroad.
When abroad if a person spends foreign currency in the same way they might in the UK (always having a few notes on them) then spending it and withdrawing more cash there is no consequence for the individual and each transaction is essential free. However if there was a monthly/yearly cap on cash withdraws abroad a person might be less likely to use cash as they only have access to so much without penalty (a % fee of the withdraw). They then might be more inclined to use cards on more possible payments going forward…
Granted the above relies on merchants accepting cards but on my travels I have not found this an issue, all be it I have only travelled to cities.
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This makes a lot of sense to me.
This is the one! Id rather a yearly limit of say £1000 compared to £200 per month as like its been mentioned £200 cash wouldnt really be enough to do the average user on a weeks holiday would it?
Another point id like to put out about this is I’m a monzo customer here in northern ireland that works in the republic of ireland. I love the monzo card because it is one of if not the only card that allows be to travel between the two as if theyre the one country and not be penalised for it and living my daily life.
Unfortunately it now seems like this is going to impact my life and finances for the worse
What did we do before Monzo. I’m used to obsorbing these charges currently with my usual bank, and my moral compass say keep doing the same. I’m more than happy to obsorb all associated charges with overseas cash withdrawals. I’m happy that Monzo are keeping the MC rate of exchange which we all benefit from.
An Option 4 for me would be to Pay a standard monthly fee of £3 for the account. Whether I use it abroad or not. This would also allow the amazing team Monzo to fund and innovate new features and models to bring to all users. It’s only fair.
Keep up with the good work and thanks for offering me a beta account today.
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If there are people who only use thier card abroad and have no or little UK transactions can you not reverse the allowance idea. Rather than having a £200 allowance free abroad instead set a UK quota such a minimum number of UK transactions a month or minimum spend to qualify you for free transactions abroad otherwise there is a fee.
Customer data you’ve collected should allow you go distinguish the best quota to impose based on customer spending patterns
I’m for option 4 of an annual limit fee free rather than a monthly limit. say around £1500 with then 2% thereafter
If it’s a lower monthly amount it penalised those on one or two holidays a year, especially family holidays where you are more likely to need cash.
Really? It seems to me that this will be the most expensive option for Monzo. Completely free ATM withdrawals abroad for up to £200 per month that they have to cover, whereas the other options cover their costs.
Option 4! - My option would incentivise people to use the card as their main card in the UK.
Solution*** the more you spend in the UK the more allowance you have for ATM withdrawals abroad.
Say someone spends £500+ a month on the card consistently, they can then withdraw more cash at an ATM abroad. Or conversely, if someone spends nothing on the card in the UK, they get a minimum allowance.
Reward loyalty and encourage people to use the card 
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However certain retailers make a charge when you use your card over the counter. The latest one being 3%.
So the choice is so I pay the retailer 3% extra or pay extra for withdrawing cash out of an ATM 