What does Monzo offer that Revolut doesn't since they introduced the 3% Cash Withdrawals Fee?

In what sense backed? Lloyds invest in Revolut?

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Revolut received £1.5 million in venture capital funding from a consortium which included Balderton Capital, Seedcamp, and Venrex Investment Management. There is no indication of any involvement with Lloyds Bank other than as Revolut are NOT a registered bank and NOT covered by FCSC protection their card holders funds may be paid into a Lloyds Bank account by Revolut

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I don’t think so. As far as I know Revolut’s ringfenced account in which they deposit client money is with Lloyds. Calling that backing seems incorrect. Essentially Revolut has an account with Lloyds.

Edit. Oops, @anon44204028 beat me to it…

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I find it weird then that Revolut advertise it as a “Current Account” then?

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Do they, tough? The only thing I see on their website is

Revolut. Beyond Banking
The only account for your global lifestyle.

I am sure Monzo don’t need any backing from another financial institution. Monzo have a full banking licence and are operating like other UK banks regulated by FCA & PRA and backed by FSCS protection.

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Yes They Do;

http://news.revolut.com/post/156938742072/introducing-revolut-current-accounts

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That’s really interesting. I thought only those with banking license can offer current accounts?

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They say they are regulated by the FCA, there are different levels of regulation but my understanding is you can only offer a current account if it is actually a Current Account…

You can offer current accounts if you are not a bank but can’t call yourself a bank. You do need to be registered with FCA PRA or foreign equivalents such as Bank of Ireland regulators.

Examples include e-money institutions like Monese.

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when you open a bank account with them under IBAN and BIC the Bank field is set to Lloyds. my assumption is some sort of deal for bank accounts?

in all honesty i have no clue how this works. i dont mind if monzo is backed by a bank or not as long as my money is protected

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Your money is NOT protected with revolut. They are required to ringfence the client money, but if a rogue employee runs off with it and revolut go bust, you are SOL - there will be no government dept stepping in to refund you.

With Monzo, you are protected up to the FSCS limit (85k at the moment, but it varies as it is currently set by the EU at 100k euros or equivalent). Whatever goes wrong with Monzo, you will get your money back up to that limit.

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Does this apply to Monzo pre-pay ?

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Nope. Only current accounts.

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17 posts were merged into an existing topic: 3% ATM fee abroad!

It isn’t £6.99. It is £72 per year (paid upfront) or 12 monthly payments of £6.99 (or £83.88).

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Is my money safe?

"Client funds are stored under a segregated account at Lloyd’s or Barclays, depending on the type of account you hold. As an FCA authorised institution, your funds are safeguarded as per FCA requirements, the Electronic Money Regulations 2011 and the Payment Services Regulations 2009. In the event of an insolvency, you will be able to claim your funds from this segregated account and your claim will be paid above all other creditors.

All your card transactions are processed by the Mastercard network and are protected by Mastercard rules."

That was taken from Revolut website

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if that is what it says on their website it is wrong

Lloyd’s is the insurance corporation
Lloyds is the bank

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I doubt it, they aren’t gonna put it on their website if it’s not true