Current Account in other currencies

[giorgos]

Hello All,

When current accounts are launched, what would you think of the following idea

A person can hold multiple accounts, in different currencies [USD / EUR / GBP / etc ]

and from the APP they can link the debit card to the account they want. This way when someone is on holiday (in a country of that currency) they can use the particular account for their transactions.

Currently Citibank UK is offering this functionality, but require a lump sum to be deposited prior to open a current account.

Thanks
George

[alexs]

I can see why this would be useful for users who receive payments in foreign currencies or might want to speculate on currency fluctuations.

But since Monzo offers users the MasterCard wholesale rate for currency conversion with no fees (even hidden fees ), I’m not sure how this would benefit travelers to be honest. Am I missing something here?

On the plus side, we know that Monzo are testing EUR & USD accounts (in preparation for their international expansion) so as long as residents from other countries can open those, it looks like you’ll get your wish anyway

Would you do your banking with a tech startup? – The Guardian

Monzo is “testing US dollar and Euro cards right now”

[Avishai]

I’m not sure how this would benefit travelers to be honest. Am I missing something here?

I wouldn’t mind if Monzo had it. I could use it to exchange money months before my upcoming trip, if I’m expecting negative currency fluctuations (negative for me). I understand it would be my risk, but one I’m willing to make if I educate myself.
Also, Polish zloty tends to jump a lot, so I could buy Polish zloty for future home trips, when I see slightly better rates and keep them there until I need them.

That’s only functional edge that Revolut has over Monzo for me. Unfortunately, Revolut only offers gbp, usd and eur as far as I’m aware. If Moneycorp’s rates were any better, I’d order cash upfront to pick up at the airport. But as I just checked, here are rates:

• Moneycorp:1140 eur = 1005.29 gbp
• Monzo (Mastercard calculator): 1140 eur = 984.38 gbp
• Revolut says 1140 eur = 984-985 gbp (it’s changing every few seconds)

As of right now, Revolut would allow me to keep 1140 eur purchased with today’s rates until my trip, Monzo cannot do this (hopefully yet!).

[alexs]

Ok so you fall into this group

might want to speculate on currency fluctuations

Just to pick up on the Revolut FX rates, the feedback here (& in the subsequent posts) is that sometimes you end up with a better rate from them & sometimes you get a better rate from Monzo…

Since you won’t know which rate will be better ahead of time (the FX market could move against you after all - & most FX traders get this wrong), I’m not sure how much benefit the Revolut account in a foreign currency is really giving you as a traveller?

[Avishai]

Well, okay, it is speculating, but not for the sake of speculating, just to save on travel. It’s also a saving pot in a way - you put money as EUR and it’s there until you spend it. You won’t take money out because it will cost you to get GBP back.

As part of holiday prep, I research currency. For 3 trips (out of 4, I’m only looking at higher spend trips, not 3 days in Prague), I would save money if I exchanged it at the time when I was checking. When you are planning 4 weeks, it can really add up.

I’m not sure how much benefit the Revolut account in a foreign currency is really giving you as a traveller?

As a whole, Revolut doesn’t give me anything better than Monzo apart from prepurchasing currency. With Revolut I COULD buy EUR now, while Monzo won’t give me this option. That’s only difference - it allows me to risk on currency exchange and potentially save money. If Monzo would offer this, I would definitely consider going from assumptions to trying it out for real. I don’t think it’s enough to make me want to get in bed with Revolut.

To be really objective, I was usually looking at crappy rates, that was before I met Monzo and got educated by fellow Monzonauts . It seemed I could really save a lot more money, because buy/sell difference was more substantial. I’m going to re-evalutate if I still fancy this idea after trip to Morocco (end of April), EUR rates are in the previous post.

[Sheela]

I get paid in USD and spend internationally. To use monzo now, I have to topup GBP account from.an USD account and spend in euro’s , so I get charged exchange rate twice. It would be great if I have 2 topup wallets GBP and USD . Then I use GBP for all UK related expense as I have limited resources and USD for all international expense

[alexs]

I can definitely see how this would be useful it’s been suggested a few times before so I’ve moved your post here, as it looks like we won’t see this functionality until after the current accounts launch.

Naji’s comment is the most recent comment from Monzo on this idea -

Click the to view the full post, including Tom (Monzo’s CEO’s) comment on this.

Foreign Currency

Currency pots like this aren't aren't in our immediate plans. It's a nice idea, and something I imagine our users may explore further using the API in the future, as Tom mentioned here

[iansilversides]

may want to read this thread with a similar ‘problem’

Fee Free for US TD Bank Visa Debit customers

I have American family joining me on a European trip this summer and they wanted a simple way of us being able to split bills etc. I asked a few questions here at Monozo and TD Bank (10th Largest in US) and after a couple of trials I can confirm that any monies sent to my Monzo card (through Monzo.me/username) from their TD Bank Visa Debit card was fee free and instant.

[drthanwho]

I was wondering if the idea of having an additional account (same idea as a savings account) but instead being on a different currency, such as Euro, on top of the main account could be a possibility. I think it would benefit people who travel abroad quite often.

[Jkb114]

With fee free conversations and perfect exchange rates I personally don’t see the need for this but I know it has been discussed before.

[awn]

Yep, this. I suppose in travel mode the app could display a second approximate balance in the local currency, but I don’t think having a special account just for that is necessary.

Of course once the virtual pots have been added you could do this yourself.

[Chazf1]

I think virtual accounts available in other currencies would be very useful, and highly desirable.
You could buy currencies up front (avoiding market fluctuations) and have a fixed foreign currency balance to budget for any trip. This offers a new flexible way to manage travel money, having a balance in a chosen currency, with the ability to buy more currency or just use sterling and convert at time of purchase.
Choice is what is important, some won’t see the need for this others will love it.

[Binco]

Monese has just launched the euro version for 5,90€ month you get:
Your European IBAN account
Contactless Mastercard debit card
Receive salary or other payments
Global card purchases
Global bank transfers
Instant Monese payments
Mobile transaction notifications
In-app balance checks
Banking account statements
In-app card management
ATM PIN change (UK only)
In store cashback (UK only)
Account help and support
Three free ATM withdrawals globally.

When Monzo will do the same expansion whit the same features but naturally free as Monzo now is ?

Pricing - 5x cheaper than banks* | Monese

[alexs]

When Monzo will do the same expansion whit the same features but naturally free as Monzo now is ?

The short answer is we don’t know yet. Monzo has been focused on launching the current accounts before they start adding functionality like this. We do know that they’ve tested accounts that hold Euros though & they plan to expand into Europe so this is on the way

---

I’ve moved your post here to keep all of this discussion about this functionality in one place.

[Sburley]

One interesting thing if Monzo offered EURO accounts… they would have to offer free of charge SEPA transfers

[emardell]

I tend to use FairFX to ‘fix’ a good rate as markets fluctuate ready for travel and holidays later in year. I appreciate Monzo as a great instant rate if I’ve not planned in advance, or need some extra (usual!) but a previous great rate is always going to be better.

It would be great if we could put into a pot (separate fund requested elsewhere) pre-purchased foreign currency to then draw from if call for that cash comes in.

I could dump FairFX then and focus on Monzo for all transactions. I do however appreciate you need to make money so I’m not sure how FairFX take their cut (assume on exchange rate) and if you would need to do same rather than interbank rate to fund this…still a benefit for the user locking in a better rate at that time.

Ed.

[jzw95]

How do you know the rate you’re ‘fixing’ is a good one? If you fix yourself into a certain rate for a holiday in three months, and the pound gets stronger over those three months, you’ve fixed yourself into a bad rate. It seems to me you’re as likely as not to lose out doing this.

At the moment, FairFX will give you €1,110 for £1,000. This much in euros would only cost you £976 on Monzo today (or to put it another way, you would get €1,137 for £1,000). If the pound’s value doesn’t change in three months, you’ve essentially lost €27 using FairFX. If the pound’s value increases, you will lose much more. If the pound’s value decreases, you’ve done well.

So there is a chance that you get more foreign currency by ‘fixing’ it now, but there’s also a (greater) chance that you lose out.

[alexs]

How do you know the rate you’re ‘fixing’ is a good one? If you fix yourself into a certain rate for a holiday in three months, and the pound gets stronger over those three months, you’ve fixed yourself into a bad rate. It seems to me you’re as likely as not to lose out doing this.

Good point, most people get this wrong.

Those FairFX charges are pretty shocking

The only reason I can understand people wanting to purchase currencies months in advance is if they’re really short of money & they want to make sure that they have enough money to spend on their holiday. But otherwise, it doesn’t seem worth the hassle to me

Martin Lewis gives a good roundup of your options here -

[emardell]

I think you guys are arguing the reasons without looking at fact that people do want it and can also be successful with it.

I ‘invested’ a significant amount pre brexit vote as I felt the country would opt out. Paid for large chunk of a foreign holiday. Also there are times when you can see in a flood of bad rates that you get political news that gives you a decent rate.

I agree its a gamble but if you have larger chunks to pay, often worth it if you’re careful.

There are also times moving larger amounts to pay that you want to be locked in at a price rather than risk it going higher. Cars and houses etc. Companies have successful businesses filling this need and no reason why Monzo couldnt benefit too.

[MIROW]

it is not just people short of money. people with regular outgoings such as rent or mortgage abroad may wish to fix a rate. a sudden change of exchange rates can mean to them a hundred pounds difference in their monthly payment from one quarter to the next