Any probs with Monzo

Walker5163

Hi all.
I hope you’re all keeping well. 

I’m wanting to switch to Monzo, paying my monthly salary in there and switching some DDs. I have an account open and ready to go. 

I typed Monzo into Facebook and I have seen some negative Monzo related groups.  Many saying Monzo closed the customers account with warning and no reaso- months later they’re still trying to get their money back. 

I find it odd an account would be closed for no reason. But there seems to be a few people saying the same. 

I just wanted to get some feedback on Monzo. Being a ‘fairly’ new bank, and online based, would you recommend? 

I do like the look of it, I like their saving pots and the app interface. 

Any info greatly appreciated. 

Daliah

All banks will block, and in extreme cases, close accounts if they are not satisfied that the transactions on the accounts are legit, if personal accounts are used for business purposes, if there is any link to persons whose accounts got closed,  or if the banks get abuse from account holders. Those affected will invariably say they have done nothing wrong but accounts do not get closed for no reason. There are plenty of "xyz bank are %$£**&! and closed all my accounts and I have done nothing wrong" posts on Facebook and on Trustpilot - - -  but these are a tiny minority of the tens of millions of account holders who happily hold their current account(s) at a bank of their choice.

Monzo and other online-only banks such as Starling and Chase are attractive to some people because they do not carry out Credit File hard searches during the application process. Therefore it is a lot easier to get an account with an online-only bank, and they will attract people who, for one reason or another, are not able to get an account at banks which do carry out hard searches (basically all the rest do). But bottom line is that if you don't have any questionable transactions, a Monzo account is as good as any other bank account.

May I ask what attracts you to Monzo, though? They don't offer a switch bonus, cashback on DDs, cashback on debit card spending, interest on positive balances, or any functionality or feature they do offer that you can't also get at other banks.

Monzo's savings rates are pretty mediocre, too. For example, take their best instant access account at Shawbrook - 1.55%. If you go to Shawbrook directly, you get 1.81%, and if you go to Al Rayan (not offered through Monzo), you get 2.1%. You may be alright paying Monzo to provide you with a concierge service to savings accounts - it's not for me though.

Rob5342

I've used Mozo for my main banking for the last year and I think they are great. The pots make it really easy to budget, I put all my bills money into a bills pot when I get paid, and then each direct debit comes out of the pot. I also have four pots for holding the money for each week of the month, and transfer it out at the start of each week (notionally a week, but it varies between 7 and 8 days). All I have to do is look at the balance to see what I have left for the week, knowing money for bills is waiting in a pot as is money for upcoming weeks. I also like the feed which has transactions, upcoming direct debits and approvals for online payments all together.

jasonwatkins

One thing to bear in mind is that if you close the account yourself for any reason, you'll be banned from re-joining.  

overspender22

jasonwatkins said:

One thing to bear in mind is that if you close the account yourself for any reason, you'll be banned from re-joining.  

Not true, they can be fussy about who rejoins (who knows the criteria) but there have been people who’ve successfully rejoined after closing their account / switching out. 

Skintoap

Just be aware that they have a cash withdrawal limit of £250 in a rolling 30 day period with 3% interest charged if you go over the £250. If you plan to regularly withdraw cash please bear this in mind. 

Neil49

Skintoap said:

Just be aware that they have a cash withdrawal limit of £250 in a rolling 30 day period with 3% interest charged if you go over the £250. If you plan to regularly withdraw cash please bear this in mind. 

This only applies to those accounts that pay in minimal sums of money each month (like me). If you pay in more than £500 per month then atm cash withdrawals are unlimited. Details are on their help page.

I've used Monzo since the prepaid card era but only use it as a secondary account for day to day transactions. The big benefit to me is the instant notification on your phone of any transaction. 

I have to say that I wouldn't use it as my primary bank account though. 

impoverishedtraveller

jasonwatkins said:

One thing to bear in mind is that if you close the account yourself for any reason, you'll be banned from re-joining.  

Absolutely incorrect.

I switched from Monzo to HSBC to get a bonus. When applying to rejoin Monzo, I couldn’t go through the initial account opening process via the app as my Mobile number had been previously used - but after contacting Monzo support (as directed), the issue was solved within 24 hours.

jbrassy

Monzo is great if you're a hipster who wants to show off with a bright orange card.

To be honest, if you're looking to use an app-only bank with lots of neat features, Starling is better. 

k_man

jbrassy said:

Monzo is great if you're a hipster who wants to show off with a bright orange card.

To be honest, if you're looking to use an app-only bank with lots of neat features, Starling is better. 

Can you provide details?
I am not aware of any significant differences between the 2 (or most other banks with app access).

jbrassy

k_man said:

jbrassy said:

Monzo is great if you're a hipster who wants to show off with a bright orange card.

To be honest, if you're looking to use an app-only bank with lots of neat features, Starling is better. 

Can you provide details?
I am not aware of any significant differences between the 2 (or most other banks with app access).

Starling do not charge any fees on overseas spending or ATM withdrawals.

As for Monzo:

"Withdrawals in the European Economic Area (EEA)

If you use Monzo as your main bank account, or have Monzo Plus or Monzo Premium, withdrawals are fee-free. If not, you’ll pay 3% on withdrawals over £250 every 30 days.

The rest of the world (outside the EEA)

You can take out £200 for free every 30 days, and we’ll charge 3% after that. With Plus it’s up to £400 for free every 30 days, and up to £600 with Monzo Premium. After that, we’ll charge 3%."