Direct Debit cashback - future Current Account


(Calum Fletcher) #1

Hi guys, I’ve been using Monzo a few weeks now and am getting on with it really well. So, i’ve mostly been using my monzo for everyday transactions (groceries, petrol etc) which is great. However, all my bills still come out of my main Natwest account.

Now, I know that Monzo are working hard on releasing a proper current account but with Natwest Rewards, I get cashback on all my household bills which does end up adding up to quite a bit. I’d love to switch over to Monzo fully when they release their account but obviously, the cashback is something I would lose If i were to switch over.

I guess long story short - does Monzo ever plan to release any sort of similar cashback system such as this for household bills when they have released their current account? Could be another tempting proposition for people to join if you could! Otherwise I guess i will have to keep these coming out of my main account making it a bit more difficult to budget these better with my Monzo spending :frowning:

Anyway, keep up the good work! :slight_smile:


Premium current account
#2

They are currently only planning to offer free accounts therefore these will not come with such features. They do not plan to charge a monthly fee and therefore will not be providing packaged accounts including cashback, phone insurance, travel insurance, etc.


#3

You can have a free account still with some element of cashback/reward.

Co-operative Bank up to £5.50 a month for direct debit payments and some debit card usage. TSB 5% cashback on your first £100 of contactless spend each month. Halifax £3 if you pay in £750 and have two direct debits. Tesco Bank Clubcard points on your spend. M&S Bank £5 voucher if you deposit £1000 each month.

These are all with their free accounts and excluding any banks offering higher interest rates or fee-free overdrafts for temporary periods.

Then on top of that you have the packaged accounts which cost extra. Some with features like insurance and others with cashback.

Now maybe they’re just doing it so you’ll get their credit card/other product too. But it’s worth asking the question, since this is the competition and the banks you’re trying to lure people from.


(Josh Bray) #4

They are all accounts that are funded by large fees and other financial products unfortunately. Since monzo doesn’t have any plans to offer anything other than current accounts ATM it’s very unlikely they’ll offer any sort of cashback


#5

Many of these banks will use income from things like their excessive overdraft charges to help pay for this yet Monzo hope to provide overdrafts at more reasonable cost so using financially struggling customers to subsidize the more well off customers is not Monzo’s plan. Many of the banks you mention have either been around for a long time or had millions pumped in by the taxpayer, as Monzo is a new bank it does not have the benefit of having built up large reserves from a big customer base and still needs to meet regulatory liquidity ratios etc. If you are looking for cashback etc then a legacy bank is probably your best bet. While cashback can come on free accounts the original example was NatWest Rewards who I thought charged £3!?


(Calum Fletcher) #6

Hi Mirow,

I didn’t actually say anything about it being a free account, that was someone who replied.

I merely was stating my Natwest account gives me cashback for household bills (3%) with Direct Debits. Yes, they do charge £3 a month for this, but the cashback you get from it outweighs the charge if you have enough direct debits.

It was only a question anyway guys. It looks like Monzo wouldn’t have any plans to by the looks of things.

Thanks anyway


#7

Hi @fletch_uk thanks for your reply pointing out the comment about free accounts was by another user (@JPiz) rather than you. Have a great day


#8

There have also been comments on cashback and other gimicks on other threads


#9

Some have commented on the benefits of better rates and charges on card transactions and IMHO this is more important than cashback


#10

As you are interested in cashback you may also be interested to read the comments in Bonus/Benefits from banks


( surohpotsirhC) #11

Better rates and charges on card transactions is a more realistic benefit than cashback in my opinion. In theory Monzo could do a counter that shows how much you’ve saved vs. average charges by the other banks.
Possibly a bit crass for them.


(Ben) #12

Just my thoughts.


( surohpotsirhC) #13

Good thoughts they are too. :thumbsup:


(Calum Fletcher) #14

Wow, sensing some hostility on this thread. This was a genuine question and i am new here so hadn’t seen the other threads. Guess it will be the first and last time I will be posting.

Was only really after a yes, this is a possibility or a no, there is no chance of this happening. If there is anyone out there like me though utilizing direct debit cashback for household bills, this will stop them fully committing to Monzo when they launch their account, a thought perhaps. Thanks anyway.

Keep up the good work Monzo :+1:t2:


#15

No hostility as far as I can see and don’t think our regular users would ever intend that. This is a great community with much interaction and as a result different opinions, but they are all respected. When any personal animosity ever takes place it is always dealt with


(Alex Sherwood) #16

I’m sorry it’s felt like that, as someone who reads most posts in the community, I don’t think there is any hostility here, it’s just that users want to share their thoughts & they’re being direct.

Unfortunately, it looks like Monzo don’t have any plans to build the sort of service you’re looking for right now which is why the answers might seem negative - “not happening”. But it’s certainly not an unreasonable question.

Out of interest, what % cashback are you earning on your bill payments & (if you don’t mind sharing), roughly how much do you pay each month?


(Ben) #17

Sorry Fletch, as I feel this is aimed at me which is fine. I think the amount you would get back as cashback you will actually save by using the budgeting features that come with Monzo. Please don’t be put off by me, we love the community and hope to see you be a part of it.

I’ll see you at the bar, the first beer is on me :beers:


(Tom Warren) #18

Don’t forget when the marketplace is implemented! Granted money can be saved searching for yourself, but the fact that Monzo may get companies coming to them with exclusive deals. Win win :trophy:


(Alex Sherwood) #19

@jshrager is a fan of this idea too :slight_smile:


(system) #20

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