Go Away Go Henry


(Trevor Mitchell) #1

I’m appauled that they feel £2.50 per child per month is good value for money.

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(Jonathon) #2

Is this the app you are referring to: www.gohenry.co.uk

From a brief look, are you meaning the £2.99 a month fee? What isn’t value from that amount?


(Trevor Mitchell) #3

Certainly for the small amount of pocket money my kids get this equates to over a 10% handling fee, how can I teach my kids the value of money if I myself am prepared to waste it in this way.


(Trevor Mitchell) #4

£2.99… That’s even worse than I though initially… :frowning:


#5

What is the alternative if you want your child to have access to a contactless card, and a “banking” app?


(Jonathon) #6

In my mind it’s a fairly cheap fee, given the amount I spend on coffee per day alone.

The kids wouldn’t see the fee though, so it shouldn’t affect them, no?


(Trevor Mitchell) #7

Therein lies the problem, they are taking advantage of the fact that there is not an alternative. If your mortgage rate was greater than 10% you’d soon go elsewhere…

Perhaps I’m on my own on this one… :slight_smile:


(Andre Borie) #8

Any other free prepaid opened in your name. Simple and easy.


(3 Round Investor) #9

Plus top up fees in some instances - I can’t see how this could not be replicated by Monzo


(Jonathon) #10

Monzo is now current accounts only, so I’d hazard a guess they can’t yet be offered to those under 18.


(Trevor Mitchell) #11

Correct… :frowning:


#12

I’ve said it before: Not only against T&C, but opening a financial account for someone else using my name, and/or knowingly providing false information when opening a financial account is most likely fraud. Do not do this!


(Peter Roberts) #13

A lending product isn’t really comparable in this case. It’s not possible to allow a minor to take on debt under UK law I believe and I’m pretty sure it’s illegal to do lots of other potentially nefarious / profitable things like data mining

So all that accepted, how else are they to make money? This may explain the subscription price that seems higher than we’re typically used to dealing with in a UK financial product


#14

I never understand why if an 11 year old can have a contactless debit card from a main highstreet bank then why the same can’t apply to children of at least school age 5+…

All it does is allow the likes of Go Henry to profit from the “unbanked” in a similar way to those that are new to the UK or others that can’t get full bank accounts…


(Gareth) #15

Referring to this screenshot, the normally hidden cost of running a bank account is something you’re now paying for - and you get extra control compared to a standard account.

With a child account, the bank won’t earn much interest, they can’t have an overdraft and the marketplace would have to be sleezy to make money from them (sponsored game app downloads?). So yes, there’s a cost because the child definitely won’t retain the account into adulthood where they might pay fees etc.


(Trevor Mitchell) #16

Indeed, however I know lots of people who are always dancing around a zero balance or getting paid and rapidly making their way back to a zero balance, I have a few friends with overdrafts but I also have some who refuse to go into negative balance simply surviving on what they have, in my mind this is probably costing the banks more than a Childs account as the bank are not able to lend out any of their money and they have DD’s and SO to administer, from this I am saying that a child account could actually be worth more than some adult accounts.


(Trevor Mitchell) #17

And the possibility of gaining an adult member when said child hits the ripe old age of 18… :slight_smile:


#18

I imagine that while this may work for established banks, who will usually have significantly more adult than under age customers whom they can charge for overdrafts etc, this won’t work for a “new” bank who may not have the required ratio of adult/under age customers for many years to come.

The interest income for the bank on kids’ deposits is presumably also quite low, assuming that most under-18s aren’t exactly “high net worth” individuals…


(Trevor Mitchell) #19

Blockquote

#thenewprince. Lol