Is Monzo safe?

Shakin_Steve

I keep around £1000 in my Monzo account, purely for.............well, you all know what for.

colsten

I don't. Enlighten me please.

Shakin_Steve

In case I get caught short.

Mart7379

Ok so it seems Hsbc are also a bank to avoid. 

Suppose they are all the same. Just boils down to who someone trusts more than the others? 

Thrugelmir

Mart7379 said:

Ok so it seems Hsbc are also a bank to avoid. 

HSBC have the financial clout to survive. New banks have a challenge in gaining sufficient balance sheet size and profitability. 

colsten

Shakin_Steve said:

In case I get caught short.

Why not earn 2% on your 'in case' money?

colsten

Thrugelmir said:

Mart7379 said:

Ok so it seems Hsbc are also a bank to avoid. 

HSBC have the financial clout to survive. New banks have a challenge in gaining sufficient balance sheet size and profitability. 

Granted, the risk of Monzo folding appears higher than the risk of HSBC ding the same. Though it doesn't really matter with FSCS. The severity of the inconvenience if it happens depends on how much money you have in there, and how many DDs and SOs you'd have to switch. But who would use Monzo for their DDs when you can get cashback at Santander? And who would have lots of money in Monzo? Probably only fully-subscribed die-hard Monzo cultists.

Shakin_Steve

colsten said:

Shakin_Steve said:

In case I get caught short.

Why not earn 2% on your 'in case' money?

I know that makes perfect sense, Colsten, but I have lost heart in the whole project. The time I spent checking accounts and moving money around was worth it at 4 or 5%, but much less so now. I guess some are committed, I find myself less so these days.

gsmh

colsten said:

Why not earn 2% on your 'in case' money?

While the rate is so low I use a virtual pot in my budgeting app to keep my 'in case' money separate from my spending. 2% on £1K is not worth it when I would have to sell my soul and bank with a company proud of its association with the bearded spaceman. I will happily forgo £20 to keep my soul and retain my dignity.

gsmh

colsten said:

But who would use Monzo for their DDs when you can get cashback at Santander?

Clearly not you. When I was a young man I made sure my pension was going to be good and in older age I have no need to scrabble around for perks and freebies here, there and everywhere.