- 3% surcharge introduced on overseas withdrawals
- Fees can be avoided
Monzo’s international money transfers system has received an overhaul. Since 2015, it was possible for their customers to make overseas cash withdrawals for free. Now, the same service will cost them 3%.
However, if users decide to upgrade their account within the app free of charge, they will be permitted to take out £200 on a monthly basis without having to pay fees. This goes for any number of transactions, as long as the £200 mark is not surpassed. After that point is reached, the 3% fee applies.
The new rules also affect foreign currency withdrawals from Monzo’s prepaid card.
Monzo decided to make these changes based on their conclusion that free withdrawals were unsustainable. The company started contemplating making some changes and asked around 400,000 users for feedback during the process.
The good news is that holiday spenders will not be required to pay the extra fees, and the same holds true for online transactions.
While Monzo is still appealing for those seeking cheap cash withdrawals, there are some alternatives which also provide money transfers.
Starling, another mobile-friendly bank, doesn’t charge users who are trying to get their cash out abroad. There are no loading fees and you don’t have to pay for the card.
Metro Bank is free to use for both spending and withdrawing money, but only in Europe.
Revolut, Monzo’s competitor, offers limited cash withdrawals at no cost. Similar to the service that Monzo offers, you can withdraw the first £200 for free each month, then a 2% fee applies for each subsequent transaction.
