Monzo has revolutionised the way in which British people do their banking. Monzo was created in 2015; it is an app based bank that simplifies your finances and enables you to visualise where you are spending your money. As a student in London, I see more and more people using Monzo every day. In fact, every week 20,000 new people sign up. So, what are the benefits of using your Monzo card abroad?
When you travel with your Monzo card, you are not charged any fees when you pay by card. In some cases, it may be more beneficial to pay with your Monzo card when spending abroad, as opposed to paying by cash, as they don’t mark-up the exchange rate, which will prevent extra charges for you.
Most people sign up to Monzo to manage their finances because they categorise your payments for you. Therefore, you will be able to see exactly how much you are spending on each category when you are abroad. If you are someone who likes to travel on a budget, then having this information may come in handy when budgeting for your next trip. For example, you may notice that you have spent a considerable amount ‘Eating Out’ compared to your ‘Grocery’ shop. This may encourage you to be more savvy on your next trip as you will make more informed choices.
Withdrawing Cash Abroad
When taking cash out abroad, you can withdraw up to £200 every 30 days for free. This is definitely useful for emergencies, however after these 30 days are up, Monzo adds a 3% charge to any money you take out. I know of people who have been caught out by this so it is important to know. This charge is to simply cover Monzo’s costs and the company does not profit from it.
Here at Compare Holiday Money, we recommend that you use our website to find the best currency exchange rates, which will help you avoid charges like these.
Using Foreign ATMs
Some ATMs will charge you for taking out cash. However, this does not benefit Monzo. It is always recommended that you use a free cash machine to avoid this additional cost.
Monzo has disabled access to magnetic stripe ATMs and terminals for security reasons. You have the ability to turn them temporarily back on which you can do from the ‘manage card’ page.
Does Monzo work at every destination?
You Monzo card is valid anywhere that accepts MasterCard. Some countries are more compatible with Monzo than others. You can check your destination from the app, and it will provide you with reports regarding specific destinations.
Monzo recommends that you take a spare card with you. If you lose your Monzo card, you can freeze the account from your phone, and they will send a replacement to anywhere in the world. If you lose your phone, you can access your Monzo account from a computer – there you will be able to freeze your card and keep track of your spending.