This isn’t meant to sound like a naive post - but I guess it does.
In the email and post about ATM fees, there are references to customers who use their card for foreign travel only, and not in the UK. “but don’t keep the card once they’re back in the UK”. I admit to using the card - so far - only abroad and a couple of times in the UK - though I won’t discard it.
“and people signing up specifically to use the Monzo card abroad…” yes that’s me and son too, power of research and word of mouth in unintended way?
So where does the card fit in terms of how it should be used ?
I have a bank debit card - small purchases in local retailers.
Credit card with cash bak - big items, and even small items.
So - and this is directed at Monzo folk - where ideally could or should I use my coral card to keep the model you have sustainable? Small ish purchases in local shops, I guess. As well as abroad obviously.
I used my pre-paid card for all my spending, groceries, clothes shopping, booking flights. It was pretty much everything that didn’t need to come out of my account by means of direct debit.
You’ll soon be invited to switch over to a current account which offers all the same functionality but you get a proper debit card. You can use it int the same way - top it up with just spending money, or you can move more/all of your money into it, get your salary paid in if you want, set up your direct debits to come out. Being a full bank is what Monzo is aiming to do, rather than just help you avoid fees outside of the country.
Monzo is going to offer a full current account which if you like could be your everyday bank account with all the CA benefits plus lower or clear charges, unlike traditional banks.
Lots of people use their Monzo prepay card to keep an eye on their spending because Monzo app shows you very clearly where your money is going in real time.
It’s not about sustainability but about purpose and the purpose of the cards was to aid Monzo in developing the back-end systems needed for a Current Account (back when Monzo didn’t have a banking license).
The license is now there and the Current Account is being tested so the prepaid card has done it’s job and will be retired (unless plans change).
not sure there is an answer to “how it should be used”
this is how Ive grown into using it -
Initially I was given a Monzo card because I was going on Holiday and it was free FX , I used it on holiday and liked the instant notifications of spends, and how I could keep track of how much I was spending enjoying the holiday- but since then Ive continued using it - almost 2 years now.
I used to go through all my bank statements from lloyds , for what seems like an eternity in my personal time - probably monthly - to see roughly - if I could remember what I bought against the code on the statement - where I was spending my money , now its just a tap of a couple of buttons on the app to see how much I spend on most of my outgoings , I know exactly how much Im spending monthly , quarterly and yearly., and if Im on budget ( insert salary there ) , underspending or overspending , if Im overspending I can quickly reign back on my discretionary spend. Fortunately Im retired and have a reasonable amount of savings , but I do want to know where, when and what Im spending on without slaving over my Lloyds statements
) , underspending or overspending , if Im overspending I can quickly reign back on my discretionary spend. Fortunately Im retired and have a reasonable amount of savings , but I do want to know where, when and what Im spending on without slaving over my Lloyds statements