I would only deposit cash into my account if it’s a considerable amount. Anything less, I would hold onto and spend day to day on groceries, drinks, stick into birthday cards, cash only barbers etc. No problem for me to pay small fee.
(Won’t apply to everyone as some people like to spend everything on card).
I agree somewhat with this too.
But the bank has uncertainty with how widely a feature, and thus the cost, will be before it’s launched something like this.
It’s mitigating risk that the bank may not be able to afford.
And it’s easier to pass on the cost, review the data in a year and say “hey, cash deposits are infrequent, we could probably afford to absorb the cost” than launch a feature for free (I’m looking at you international ATM withdrawals) and then realise it’s unsustainable and introduce a charge and be called for bait and switch.
Monzo mitigated the same risk with savings pots. They introduced a minimum, and over time I assume that minimum will be lowered as the data, and risk becomes clearer.
Re your point with other costs - it isn’t the same. Monzo has the data already for cost of support, cost of card replacements etc. They had those features when there was 100 users. This is a new feature that could be very expensive for them.
They can’t know if they turn this on, for free, that 75% of people start depositing 2x month. They can guess but not really know. And why would you potentially jeopardise your business on that? Monzo have being growing incredibly without any facility to deposit cash. Now they’ve introduce an optional feature to deposit, even with a charge, it has made the product more valuable. So this is the right move, whether people like it or not.
How dare someone charge for a service! I would like to speak to a manager! 
Not liking to use cash doesn’t make you a weirdo, I’m almost entirely cash-free myself now. The difference is I have a physical coin jar I dump spare change (I only have notes when I’ve withdrawn them for a specific purpose) into and I either dip into it as required, or bank it infrequently when its mounted up significantly.
I never bother banking insignificant amounts of cash, if nothing else because the time taken out of my day to go to a bank is a factor, and it’s much less time to bank larger amounts less often than smaller amounts more often.
Maybe it’s easier for, which is fine if it works for you. But I strongly suspect that if you wanted to bank directly into Monzo, what you’d find is you go for the ‘larger amounts, less often’ option over the one which will cost you more than £100 a year!
See the problem with this for me is i usually get cash in exchange for me buying things for other people and things like that.
If i use cash then it renders my budgeting and summary useless for that month because its harder to attribute the penny spends when dealing with cash
Didn’t Monzo recently (perhaps a little controversially) turn off card top-ups, because they weren’t prepared to charge a fee for it?
This seems… inconsistent?
6 posts were split to a new topic: Removed Posts 07/11/18
I agree
My only experience with paypoint is with collect plus. The people behind the till seem so slow with it and it’s at my local co op so I always feel like I’m holding people up who are there to buy food…
I usually pick my parcels late at night to avoid people.
There are few PayPoint locations near me where I’d be comfortable depositing cash to my bank account. That is definitely in contrast to bank or Post Office branches.
As in you click on a post about a new feature and people are discussing it? I’d hardly say anyone is getting riled up.
Monzo saves me a few quid a month due to the lack of currency conversion fees (damned Domain registrars charging in USD), makes visiting my folks in France unbelievably simple (and charge free), has saved my backside on more occasions than I’d like to admit by not charging for bounced Direct Debits and when the need surfaces, levies a clear and reasonable fee for an overdraft.
I rarely pay cash in, but I’ll swallow a quid charge when I do - at least I’ll kind of understand why it happened!
Will be curious to see what kind of limit there will be on deposits (with PayPoint or whoever). Believe Post Office is capped at £250.
Can I just clarify something here - #FullMonzo means you use Monzo as your main bank account. Not your only bank account. We’ve never asked that people close other accounts (although, this is a side-effect of CASS, but that’s simply how the system works in order for them to provide redirect guarantees etc).
Choosing to keep open another bank account for any reason - including making cash deposits at branches for free - does not prevent someone from being #FullMonzo.
Our business model is predicated on the fact that we actually want you to have relationships with other banks who provide other services. Whether that’s working with Investec on the Savings Pots, or partnering with mortgage providers etc. We believe that we can offer the best experience for you being in control of these things.
We believe that creating a mobile-first, intelligent, delightful financial control centre is the future. Cash deposits, and cash payments, as a whole, are down. That trend is unlikely to change. Having web services and integrations, to easily support new ways of banking, is a trend that, conversely, is only going to go up and up (see things like IFTTT for example). Things that you used to do in a branch, like depositing cheques, are becoming a thing of the past due to cheque imaging etc.
There are some things, and cash deposits are one of them, that are, arguably, a benefit of a physical branches. We aren’t disputing that. But that isn’t the business model of Monzo. We aren’t based around traditional features and functions of legacy banks or simply attempting to recreate their feature set, but digitally.
But that’s not a zero sum game. We aren’t sitting here and saying “everything about legacy banking, including physical branches is wrong and outdated and literally everything about mobile-first, app based banking is 100% better.” We’ve never said that.
What we believe is that our model is the future, and that the benefits of it outweigh the negatives, and that over time, the list of benefits will grow and the list of negatives will shrink.
What will remain true is that the list of negatives will probably never go to 0, and certainly not for all people. But for most people, the benefits will continue to outweigh the negatives.
Could we throw a ton of money at a problem like this to make it go away? Sure, theoretically. Maybe the economics of usage will work out. Maybe in the future there will be other income streams for us that make it possible. Perhaps people would be happy to pay the same amount, but in a different way, like a bundle add-on or something like that. But if you get stuck in those hypothetical scenarios too much, you launch nothing. We’re launching this now/soon, in a responsible way for us as a business that doesn’t have the potential to lose us an unsustainable amount of money, or be abused by a small minority of people (a la the international ATM fees) to the point where we have to change something that’s free into something that isn’t… the other way around, however, would be far more acceptable (and although we aren’t committing to it, it’s also not out of the question down the line once we see how this is used).
The point is - this isn’t a perfect solution for everybody, but for some people, the convenience outweights the cost, and if not? You have options.
How do people that deposit a lot of cash get the cash in the first place ?
The last time I deposited was when I sold my sofa, which is over a year ago. I also found out that one of the bills they paid me with was fake 
Perhaps similar to the way that we’re given a £200 (?) allowance for taking cash out abroad, there could be either a set amount of cash that we can deposit free of charge, or a set number of times where a deposit can be made for free?
Since my local legacy bank branch closed, paying cash in is a nightmare and requires a train/bus/long walk (not always a feasible option) which costs me more than £1 in travel fares and time!
Will be interesting to see how this rolls out
See, I’m really not keen on this kind of response. I’ve seen it before on these forums and, in all honesty, it’s one of the things that has turned me off Monzo in the past.
Yes, everyone has options. However, it’s really not a customer-friendly approach to say “like it or lump it”. “Our way or the highway”.
Although I fundamentally disagree with charging people to pay cash into their bank accounts, surely it would have made much more sense to come up with something akin to your solution to foreign ATM withdrawals? A number of deposits each month for free, then a charge on each deposit over and above that limit? This would be fairer for those customers that this will impact the most - people who get a weekly wage packet containing cash, for instance - and would either deter or monetise those that use the service excessively.
£1 fee to pay cash in? I really don’t see this as expensive or a negative.
Look at legacy business current accounts - they in the majority charge a monthly fee.
Will we ever see personal banking have monthly fees? Who knows but I’d pay £1 to deposit cash.
On deposits less that £100, how can you not see this as expensive? Especially for amounts below £50 and anecdotally speaking my cash deposits are generally this small.
Hmm, that wasn’t really my point. I was addressing the false narrative about #FullMonzo meaning we want people to exclusively use us and nothing else, which isn’t the case. It’s not possible for us to be competitive with every single company on every single feature, and neither is that our aim.
Lots of people, for example, are saving with the Marcus Goldman Sachs account which has a higher interest rate than our Interest Pots. However, we’re also seeing a high usage of the Interest Pots too, which means people value the convenience and UX, to the point where they’d forego a higher interest rate. Which, depending on how much you’re saving, could be substantially more money you’re not earning, compared to the cost of cash deposits.
So it’s not really about “like it or lump it” - more that if you feel passionately about this enough to forego the convenience, then there are alternatives for now. In the meantime, we’ll consider our options based on the data, feedback and usage over time, and it’s very possible we’ll revisit once we have some tangible stats to inform us.