This idea would is more from a business perspective. Monzo could set up a ‘Top me up’ section which allowed you to apply for small loans of up to £100 and be charged a small premium which grows is repayment isn’t made in time. Great way of bringing everything into the one place for some customers and helping them, as well as getting the most out them. Not a feature I would personally use, but may be of interest as small loans are a growing thing.
Given that Current Accounts will be replacing cards in the near future, is this radically different from an overdrafts? For the values involved, I suspect Monzo won’t want too many offerings confusing each other.
For a prepaid card scheme it would be an interesting value option, however.
You are correct. Once the current accounts come into place it will be exactly like an overdraft. However, aren’t they keeping the prepaid cards for some customers? I’m perfectly happy with my current accounts, but planned to continue using my Monzo card as a budgeting technique and topping onto it what I have to spend each month.
No. Prepaid cards will cease at the end of the year and no longer be issued
Nothing stops you using a current account in the same manner as a prepaid card but they will become current accounts, partly because that’s always been the Monzo plan and partly because I think they’re cheaper to run than the cards are.