If you bank with Monzo — your Christmas might be about to get a whole lot merrier.
Being such a highly competitive industry, banks are constantly having to find new ways to stand out, from switching bonuses to hefty rewards for loyal customers.
And now, Monzo is getting in on the action by with a UK-first initiative called ‘Double Payday.’
Starting from December 8, the online bank is offering to match the salary of 10 account holders every month — with everyone who has their wage paid directly into Monzo automatically entered into the draw.
So, if you normally earn £2,000 a month, you could end up with a £4,000 balance, all without lifting a finger.
Maybe Santa is real?
Commenting on the scheme’s launch, Richard Cadman, Senior Product Director at Monzo, said: ‘We know how much our customers love getting paid early with Monzo, and we’re doing payday the Monzo way, taking that feeling to the next level.
‘With Double Payday, we’re giving customers the chance to literally double their salary every month — just in time for the festive season.’
It’s the latest strategy from Monzo aimed at improving the payday experience, adding to its ‘Paid Early’ feature, which gives users the option to be paid at 4pm the day before any Bacs (Bankers Automated Clearing Service) payment of up to £20,000 is due.
The bank, which operates solely online, recently surpassed 13 million customers, pushing ahead in front of competitor Starling Bank. However, main rival Revolut is still top dog, boasting an impressive 50 million.
Who’s eligible for Monzo Double Payday?
If you’re set on being one of the 10 lucky Monzo users to have their money matched, you need to first make sure that your monthly or weekly salary is paid directly into Monzo by your employer using Bacs.
You must also ensure you receive your salary in the account by the last day of the calendar month, in order to be eligible for the following month’s draw.
There’s no need to sign up though, as all Monzo users (aside from those who work for the companies on the Double Payday exclusions list) are automatically entered into the race, with 10 winners picked at random on the first working day of each month.
The draw does have a winning payment cap of £10,000, but all weekly and monthly salary payments between £300 and £20,000 count.
And if you are one of the lucky ones selected, the money will be automatically deposited into your account on your normal payday.
Is Monzo safe to put your salary into?
Despite continued popularity, Monzo has faced its fair share of negative press over the past few years.
After it was found to have breached anti-money laundering regulations and accepted new accounts from ‘high-risk’ customers, the bank was slapped with a £21 million FCA fine in July.
Check out Metro’s weekly column: Where to Invest
If you’ve opened a cash Isa in recent years but not looked at how much it is paying, chances are you could switch your money and get a better deal, Metro’s personal finance expert Rosie Murray-West explains…
High-paying accounts tend to see a dramatic drop in interest rates after a year, with old ISA accounts from high street banks now paying as little as one per cent interest.
Fortunately, you don’t have to leave your savings languishing in these poor-paying accounts; you can switch them to providers offering far higher rates without losing the tax-free status of your money or eating into this year’s Isa allowance.
It is important, however, that you use the correct process when moving accounts.
Click here to read your very own step-by-step guide to getting it right.
Several people have also shared stories on social media about their accounts being randomly locked or experiencing difficulties chasing fraudulent payments.
Over on Reddit, @NotAMusicLawyer claimed they lost access to their account without any explanation, and although the issue was eventually fixed, they wrote: ‘There was a time I’d have trusted Monzo with bigger financial things like a mortgage or even my pension, but that trust has definitely taken a hit.’
It’s important to note, however, that Monzo is a fully regulated UK bank, authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA).
Moreover, Monzo deposits are protected by the Financial Services Compensation Scheme (FSCS) up to a value of £120,000 per person, while a range of security features – including daily limits, biometric logins, and card freezing – help keep your cash safe from fraud.
Do you have a story to share?
Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.
