A pre-paid card with real-time app to keep track of spending is just one reason travellers are turning to Monzo as their currency card of choice. The other is their fair pricing for use abroad.
What is the Monzo App?
Monzo is a new type of bank that has an app to promote mindful budgeting. The app is able to update the minute you have made a purchase, so you always have a real-time balance to work with. It also breaks down your spending into:
- Groceries
- Transport
- Eating out
- Cash
- Bills
- Entertainment
- Holidays
- Shopping
- Expenses
What else does the Monzo app do?
- Instant payment notifications
- Built-in monthly spending analysis
- Freeze your Monzo Card instantly if you lose it, defrost it when you find it
- Intelligent insights into your spending habits
- Send money instantly to friends and family
- Easy top up with Apple Pay or another debit card
- Use your card abroad as you would at home. There are no fees and you get the wholesale MasterCard® exchange rate – until changes on 18th December
Why is the Monzo app good for travellers?
Firstly it is great for keeping track of spending, or keeping to a budget, secondly, it has favourable fees that have been ethically decided. Oh, and you can use it as your main spending card in the UK too.
As of mid December, card payments abroad will be free, and cash withdrawals will be free for the first £200 drawn per month in one hit. After that there will be a 3% charge for ATM withdrawals. This figure has been collectively decided by Monzo users, and is based on offering cardholders a good deal wherever they are in the world.
What do other banks charge for using an ATM?
As with all things to do with money, it isn’t easy to say! Monzo shared their results here, but it seems other banks charges were ranging between 3.05% and 5.26% on a €100 withdrawal in Berlin and $100 in San Francisco.
What do the app reviews say?
People are loving it, especially those who travel. However, some users are less than happy about the new fees being introduced for ATM withdrawals abroad as Monzo was initially promoted by some as a fee-free pre-paid currency card.
