Monzo Vs Lloyds or both?

Got myself a Lloyds Bank account and been with them since 1994 or something near that date.
Recently opened a Monzo account, and whilst I haven't activated the card yet, I've only used it to create a savings pot for one of the "debit wannabe challenges".

Never really had anything with my bank bar an overdraft which was paid off in full during Covid as it was costing £££ in interest.  Probably can't get any products with them as well as they use Transunion and their records aren't that favourable compared to Experian etc. (but would be clear some time next year)
No interest in another overdraft, so that's off the table with any bank.

Anyway, I'm considering moving day to day banking over to Monzo and they have a few features that would work for me.
Not sure if they are any better fee wise when using a card abroad?  Go abroad a few times a year and the little bits and pieces Lloyds charge do add up (have a Revolt card as well, but only used that once online as I just cannot get it to work in shops)

I could either:
Close the Lloyds account and bank solely with Monzo.
Keep Lloyds open with my pay going in, and use that solely for any direct debits / general bills and move some money each month to Monzo for shopping, saving etc.

I'm not sure if closing the Lloyds account would be a good thing credit report (or if say going through a broker if looking at mortgages etc.) wise.  Maybe having a long standing account would be seen better than some online bank opened two months?


  • FredTrump
    FredTrump Posts: 314
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    Keep both as never wise to rely on a sole provider plus Lloyds give access to their branches and the Post Office unlike Monzo. 
  • Neil49
    Neil49 Posts: 3,023
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    I would never rely on just one bank account. If you have a problem with a fraudulent transaction and your account is compromised in any way you are well and truly stuffed. 

    I have had a Lloyds account for years but it is only used for the receipt of my pension and the paying of monthly bills. The debit card is never used and sits in a drawer. This reduces the risk of the account being compromised in any way. 

    I transfer funds to my Monzo account for day to day transactions but keep the balance low. If the card is stolen or cloned the loss is limited and I can cancel the card in seconds via the app. 

    Monzo is very good overseas (much better than Lloyds) and the app updates any transactions in seconds. 
  • Kerreh
    Kerreh Posts: 86
    First Anniversary Name Dropper Combo Breaker First Post
    edited 29 January at 4:27PM
    I could either:
    Keep Lloyds open with my pay going in, and use that solely for any direct debits / general bills and move some money each month to Monzo for shopping, saving etc.
    This is exactly what I have done; pay goes in/DDs go out of LLoyds, I transfer x amount across each month to Monzo for pots (sinking funds) and spends (groceries/fuel). Same as @Neil49 I don't use the Lloyds debit card.

    I think I keep Lloyds partly due to (misplaced?) loyalty and the fact that they still have physical bases (well... currently!) and I'm not ready to go completely virtual for my banking.
    Aim 1:12mth Emergency Fund -> £8555.67/£16152 (53%) Aim 2: Car kicks the bucket Fund -> £9475/£17000 (56%)
  • Rob5342
    Rob5342 Posts: 1,341
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    edited 29 January at 4:49PM
    I think Monzo and Starling are brilliant and put the banks that have been in the business for hundreds of years to shame. Personally I would move all your banking to Monzo and keep Lloyds as a backup. Actually that is what I have done but with Halifax instead.
  • 400ixl
    400ixl Posts: 2,628
    First Anniversary First Post Name Dropper
    Personally, have 2 current accounts, so keep both. I would ditch the Revolut card (really not a reputable company to be trusting money with).

    Travel wise, the Mono card will give you some element of benefit (good exchange rate for card purchases, and some no fee cash machine access (ATM supplier may charge)). I would supplement that with a good travel credit card for that bit more protection.

    I would move the main transacting to Monzo (although personally prefer Starling).

    Another additional option could be Chase for their cashback offering and reasonable interest rates on savings accounts. And if you travel to the US that will give you free ATM access. 
  • macy08
    macy08 Posts: 56
    Name Dropper First Post First Anniversary
    If Lloyds is your longest current account I would not close it. Keeping it open, even if you do not use it regularly, would help your credit history (rating).
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