Does the CA offer any incentives to students. I remember the prepaid card offered a signup fast track but what of the CA?
Does the CA offer a fast track signup for students?
Does the CA offer an interest free overdraft? This is I think the number one selling point of student accounts. Once you strip away the gimmicks like railcards the really useful feature of a student account is the free overdraft.
Any plans for Monzo to offer this? Any timetables?
I can’t remember where (or when) but it was said that Monzo can’t compete right now with the big high street banks on student incentives such as interest free overdrafts right now. Not sure if there are any other perks though.
The legacy banks offer student accounts at a loss to then scam the customer later on and make their money back (and more). Monzo isn’t that unethical and their main source of profit is overdrafts so it will make zero sense for them to offer this given that they’ll pretty much never be able to make up their loss of offering let’s say 1 year of free overdrafts.
Not to mention the other sources of income for Monzo like partnerships wouldn’t work that much for students with low disposable income.
Those student overdrafts are such a trap. I knew people on the course I did that had 15k overdrafts… they wouldn’t pass any basic income check as an adult to borrow that much but they were handed out interest free just by going to the counter and asking for it. I ended up with a 4k overdraft myself.
The day you leave college… suddenly you have a large debt and it’s not interest free any more… and the bank wants their money back…
I’d prefer it if Monzo didn’t get involved in that. Incentives like money off textbooks and/or beer, sure.
Personally, as a student using the Monzo CA at the moment, I’d say the major perk for me is the ability to budget accurately by seeing my spending patterns instantly. I take your point about there not being any high street bank-esque incentives, but I think that improving the way in which students budget has been a big sticking point for me, and for a lot of my mates who’ve taken on Monzo accounts too.
As all the people above have said as well, the student bank account perks tend to be a little bit of a black hole sometimes too… So maybe it’s okay for them to stick with pure banking genius for now!
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