Incentive to switch


#1

I’m going to switch my account to Monzo shortly. I was going to switch to another bank as I would get quite a bit of cash back but I’d rather have decent customer service. Was wondering if Monzo had though of offering some incentive to switch? I can understand why the probably don’t but wondered what others thought?


(Andre Borie) #2

The usual answer when someone asks for legacy features in Monzo applies:

Who’s gonna be paying for it?

The reason legacy banks get away with it is because they scam you (or someone else) somewhere else (declined DD fees, foreign card payment fees, etc).


(Excited about Christmas) #3

Sounds like you’ve already decided that service is worth more than cash (which I agree with), so why would Monzo need to pay you on top? The service is the incentive.

Would be fun to know how many customers HSBC have bought for £200, only for them to move on when they get the cash, having seen how easy CASS is!


#4

Hi I totally agree. I wasn’t asking for or saying I wanted Monzo to offer cash back. I was asking for peoples thoughts on it.


(Eve) #5

Are you referring to switch bonuses or cashback? I guess cashback could possibly come at a later time with a Marketplace integration but I can’t really see Monzo offering current account switching bonuses. For one, you don’t necessarily retain customers that way, and at the moment they’re still operating at a loss- they wouldn’t be able to afford it :sweat_smile:


(Jack) #6

I’ve done this with few legacy banks :grin: stopped now though since the accounts offering this have run dry.
Closed my burner account down into Monzo via CASS recently.


#7

I’ve used switching incentives before and always found the custom service was poor. Personally I’m glad Monzo doesn’t offer them. As I said in my post I’d rather have decent customer service but wondered what others thought. Slightly concerned that you mentioned ‘running at a loss’. Still safe to switch?


(Andre Borie) #8

you mentioned ‘running at a loss’. Still safe to switch?

Your money is protected by FSCS so no worries even if they do run out of runway eventually.


(Phil) #9

I’ve still got one or two accounts for when the incentives start up again from the high street banks. However, the only incentive I need to switch [to Monzo] is a beautiful app, great customer service, interesting blog posts and events, and beautiful transparency.


#10

Er…I did that… And with Halifax,First Direct, Nationwide…


#11

I’ve done it with the Halifax and Coop. Bad experience with both. Was going to switch to M&S. Took a month to get me account set up. Card arrived fifteen days ago. Cant use it as I can’t access my account on line even though I’m already registered as I’ve another card with them as I need to upgrade to an internet pack. Customer service is hopeless.


#12

You could always make the switch to monzo, the open a second current account with another big bank. Then set up 2-3 direct debits to some charities of your choice (usually the minimum needed to qualify for the signing up bonus) from that second bank, you can then standing order £1000 (or whatever the min monthly contribution for the first month) to the big bank account from your monzo account once you’ve got your wage. This can then be either sent back in full or over the course of a couple days to your monzo account via standing orders.

You then repeat this with all the big banks until you’ve taken all their signing up bonuses and close the final account. All you usually have to do is qualify is put in a specific amount of money for one month and have a certain number of direct debits coming out.

Can be a bit of a pain but if you spend 6 months doing it you can make a fair amount from the singing up bonuses, just make sure you get the ones with the best offers first and read the small print.


#13

Good idea. Will look into it. Bit concerned that this paying in then out may contravene some rule.


(Andy) #14

If it’s the RBS one then you can transfer the same £500 in and out 3 times to be eligible. As long as the total paid in is £1500 by 24/08 it can be in any amounts


(Eve) #15

All startups start at a loss initially. That’s why they rely on investors, etc. initially to sustain the overheads and running of the company. They then aim to close the gap and become profitable within x years (their own target). The CEO/ other staff have spoken about how they plan to do this on multiple occasions, so there’s definitely a plan in place!

Don’t worry about losing your money though, if the unimaginable happens and Monzo goes down you’re protected by FSCS up to £85,000 since it has a banking licence :slight_smile:


#16

It’s with Marks but I don’t know if I can be bothered with all the hassle. Think if I switched I could use Monzo as my day to day card and leave that one for bills. Wanted to switch fully to Monzo but like most people a bit of extra cash is always welcome.


(Excited about Christmas) #17

Exactly!


(Kevyn) #18

Amazon has run at a loss for years. You can’t say they are not successful. Lots of start ups work at a loss before they make profits.


#19

…and this has nothing to do with taxes?

They are the most successful online business. They are also successful at avoiding paying taxes and acting irresponsibly towards their workforce.

Edit: sorry for being off topic but Amazon makes me lose my cool sometimes :wink: Apologies for using part of your comment @Chapuys to make my point


#20

I agree was just checking.