Monzo Accounts

[Bookworming]

Just to say they are bloody brilliant!

Sorts your salary to how ever many "pots" you need..

So for example

Direct debits
Christmas
Holidays
Spends
Grandchildren

And let's you set "budgets" for shopping, entertainment etc.

You can lock accounts to make sure you don't spend from theM

So much easier than having to move between accounts, it's all done for you, with one click.

Love it!

But it doesn't have a cheque book, just in case you need one.

@kitschplease

I'd like to think monzo's marketing team were a bit slicker (no offence, OP).

I'm also a massive fan, and the pots have made managing money a great deal easier for me. I do wish they paid interest though (even the teeny amount that other banks do), so use them for regular expenses/sinking funds like haircuts or kids clothes rather than for long term savings.

@kitschplease I can set up interest earning pots, it's not much but I'm saving for something large and have earned about a tenner, not much I know but better rhan nothing. Do you not get that option on the summary page bit?

This sounds great - if I've understood it right!

So I could have 'pots' for say petrol, food shopping etc then when I go shopping do you spend out of that pot? But with one card?

@Happyinheels

This sounds great - if I've understood it right!

So I could have 'pots' for say petrol, food shopping etc then when I go shopping do you spend out of that pot? But with one card?

You spend out of your current account but just use the app to instantly transfer it from any pot into your current account. We used to have a spreadsheet to budget petrol, food etc but it's so much easier having pots to just transfer back and forth.

Not quite @Happyinheels, the pots are more for savings and direct debits.

So

I have

Savings (just cash for emergency fund)
Christmas
Holidays

Direct debits

So each month (hypothetical figures)

£2,000 income

£300 savings
£100 Christmas
£150 holidays

£1000 direct debits (when a direct debit is set up, you point it to the pot to pay them)

What's left is my spends.

You can put limits on, but it won't stop you spending at those limits, it will just tell you.

For example eating out you set it at £100 and each time you spend eating out money (it will guess that kfc is eating for example, or you can tell it that a particular transaction is eating out), it will say you e used 10% of your limit.

As someone said you can also see how much you've spent over time in one place, like you've spent £200 with deliveroo or £300 with Sainsbury's.

HTH

Thank you for those replies, yes they both make perfect sense.

I love the concept - when I first got married, 20 years ago, money was incredibly tight and so we literally drew our money out for the month for things like food and petrol, kept it in envelopes and spent accordingly. As time went on we progressed to a spreadsheet with 'pots.' We had pots for all sorts so we were never short.
20 years on, I am self employed and a single parent with 2 teens and I think budgeting would be a really valuable habit to take back up! This sounds like it could be just what I need.

I have a Revolut card for nights out and holiday money - v good

@Happyinheels

Thank you for those replies, yes they both make perfect sense.

I love the concept - when I first got married, 20 years ago, money was incredibly tight and so we literally drew our money out for the month for things like food and petrol, kept it in envelopes and spent accordingly. As time went on we progressed to a spreadsheet with 'pots.' We had pots for all sorts so we were never short.
20 years on, I am self employed and a single parent with 2 teens and I think budgeting would be a really valuable habit to take back up! This sounds like it could be just what I need.

Yes it's pretty much an envelope alternative! Some people just use pots for general things as above with savings, direct debits etc and use the tools for setting budgets to limit spending in certain areas rather than have specific pots.

I find pots better as I automatically set up transfers after payday into my pots so it's no longer in my current account as a "backup". I have pots for birthdays, holidays, cars, diesel, emergency fund, home improvement/repairs, occasions (and a few more..!) and then I also set budgets in the categories available, which include groceries, bills, eating out entertainment, charity, family, personal care etc.

Monzo categorises your purchases but you can change them if they don't quite fit if you really care. So a spend in Boots may come under Personal Care but you may have actually just bought a meal deal so might want to change it to eating out.

The Monzo forums and numerous Facebook groups are good for more info.

@Happyinheels It's great for budgeting, I feel so much more organised. It's worth a go and if it's not for you just close the account. I still have Santander as my main bank but for everyday living I use monzo.

I've tried to download it but it's saying it can't verify my identity. I've tried to do the video about 10 times now!

Oh no @Happyinheels it was so easy for me! Have you done the photo of your passport?

@Bookworming yes I've taken the photo of my passport and then I did the video. I've redone it quite a few times and it keeps saying that it can't verify my ID.

You spend out of your current account but just use the app to instantly transfer it from any pot into your current account.

If you use IFTTT you can automate it (I used to have a Travel pot that all my contactless payments on the Tube automatically came from) but that may be a nerdy step too far for most

Hi! So I've managed to do open a Monzo Account at last! Just waiting for my card to arrive.
I was exploring the app and I've set up 2 pots so far - 1 for 'food' and 1 for 'petrol.' I really want to stop spending so much on groceries! I transferred £5.00 into each pot to just get an idea of how to do it (and also before I transfer a higher amount of money!). So the Current Account is empty. Imagine I'm at the shop and I'm going to pay for my food shopping - I can't spend from the pot, is that right? I'd have to transfer the money from the pot to the current account while I'm stood at the till? Or have I really over complicated that?!