Sorry Martyn - we won’t be keeping the prepaid card past the end of this year. It adds too much operational complexity for very little benefit and the program costs a lot to run.
There’s absolutely nothing to stop you from treating the current account in the same way as a prepaid card though - ie, not having your salary paid into it, not having any direct debits, and transferring over money from another current account for spending.
Well, there are no requirements to have monzo current account opened. In reality, all minuses of prepaid card go away, like downtimes caused by third party companies, prepaid card sometimes rejected and lack of FSCS cover and you get some bonuses like bank transfers (which you may or may not use, up to you).
What aspect of current account could stop you from using Monzo’s current account in the same way that you use prepaid card now? Even tops ups will remain as functionality, if I remember correctly. So you can have your current account in ‘boring’ bank with your income, and current account with Monzo for spending, same thing really, right?
Having more than one card, virtual cards and spare backups had been discussed in various topics though - but all of them in context of having them on current account eventually.
I’m on that other side , prepaid card cannot go away fast enough, because debit card and current account is so much more functional, not to mention doing all processing in house (I trust Monzo to do a better job than third party companies in terms of bugs and downtimes).
I use my current accounts like this at the moment:
My salary goes into one account, all bills by direct debit go out of this account.
There’s a standing order the day after pay day into me and my wife’s joint spending account.
We top up Monzo from the spending account each month and do most of the spending on that.
Having a Monzo current account will replace our spending account, not the salary and bills account. Separating spending from fixed bills makes it a LOT easier to budget, and not overspend each month.
It also means I can leave that debit card at home and never use it online or in shops. Which means if someone steals my spending card for any reason, my mortgage and bills carry on getting paid just the same. I’d recommend the same approach to anyone, it’s easy to set up and will save you a lot of hassle.
It will be a migration over time, you do not have to immediately accept the offer but we will progressively push it more and more until that currently undetermined cutoff date. You will receive plenty of notice.
Absolutely agree, but not only for budgeting. I love the Monzo card for travelling, load up with your set budget then you get the best MasterCard exchange rate that beats most of the cash exchange rates, which I am never organised to pre arrange anyway!!
I have a lot of plans for this with API integrations, and two of them are:
“spend the penny” saving pots
Direct Debit ring-fencing
The latter is something I want to do automatically; a direct-debit mandate is visible (and I hope will be via the API), so you can automatically ring-fence all of your direct debits on payday . I feel like (or rather, hope) Monzo will implement a few of these ideas themselves
Perhaps it is, but said features do not exist yet (and I don’t even have the Monzo current account yet). I will reevaluate periodically obviously.
Also, I trust Monzo, but I’m also not going to throw all my eggs in one basket immediately. Not being able to pay my mortgage is a big deal and one I like being protected against (I also have an overdraft in my salary account which I don’t use much, as a safety net).
It feels fine to use two accounts for awhile, given the comments in the forum about quite a few companies not accepting the Monzo sort code yet also. It’s a new bank - there will be teething problems.
I think banks like Monzo are probably in the future, but I don’t think you get to call old banks “legacy banks” until you have beaten them in the market for customers. Monzo only have a tiny market share right now. Though I expect it will get better, most people I know still bank with the same bank they did as a child!
I really like the idea of ring fencing dd’s on payday to ensure the important bill get paid 1st. My current bank has an annoying habit of paying the lesser bills 1st and my mortgage last and if I am 2p out for the mortgage money it doesn’t get paid. So they’ll pay the tv license of £13 over the mortgage of £800 even if I have £799.98 very frustrating as you can imagine
I think that the most important feature of the prepaid card that helps with budgeting is that it is impossible to go overdrawn, You can’t just spluge on an expensive item, without having to consciously top up your card. I’ll be pleased to have some of the other functions of the current account, (multiple card holders will be a real boon) as long as the no-overdraft option is retained.
Sorry if that’s been covered before elsewhere, I didn’t see it in this thread.
It’ll be impossible to go overdrawn on the debit cards too, unless you’ve requested an overdraft or it’s due to an offline transaction / delayed payment, which also applies to the prepaid cards.
Monzo will even bounce Direct Debits & stop Standing Orders, if you balance is 0 without charging you. Obviously you’ll have the tools that you need in order to make sure that you set aside enough money for those payments in advance though.