Does paying in our salary 000's really help Monzo

When we pay in our salary, taking our balance up by the '000s, do Monzo benefit directly from this significant increase in balance?

As opposed to us paying in say a smaller weekly top up that adds up to the same amount over the month?

I’m curious if or how Monzo is able to leverage greater levels of deposits per account on its balance sheet. Do Monzo invest at all? Does the added capital create better metrics per account enabling cheaper background banking services perhaps? Other positives?

Note: I’m assuming for a moment that a weekly top up would always be via BACs, would equate to your whole wage, and you never hit your overdraft. So you’re not otherwise saving monzo any debit card top up fees etc.


That’s a perfect question for this week’s Q&A.


Hi @alexlord_y2k , Hope you don’t mind but I’ve gone ahead and copied your question into the thread mentioned above as they are answering the questions later today and it would be nice to get a response for you :slight_smile:

Link below to the copy:

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Sorry, never did get an answer come through.

Wonder if anyone can shed any light?


It’s likely due to people paying in their salary being less likely to rely on things like too-ups, which saves them money.

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I’ll see if I can get this in the Q&A with Tom tonight.

The very short answer is that it’s all about main account usage, by paying your income into Monzo, you’re extremely more likely to actually use us long term as your primary account. This helps us in more small ways than I can list here, including the tiny amounts of interchange fees we get when you use your card.


Right, it sounds more behavioural than a material benefit to monzo.

Albeit I assume our credit balance allow for some marginal gain in Monzos business model.

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