Challenger bank Monzo’s two million+ customers will be delighted to hear about the bank’s new feature, ‘Get Paid Early’.
Using the new feature, if you receive a salary payment via BACS credit (which 90 per cent of the UK population do), the payment will come into a customer’s account at 4pm the day before they get paid, instead of at midnight. Monzo is able to offer it because it can be confident the money will actually arrive into your account because it can see the money coming into the system.
All banks have access to this information so could technically advance the money at this point as well, however, they choose not to.
The new feature is rolling out today and is opt-in so you don’t have to take advantage of it if you don’t want to. But with many Brits relying on credit cards and overdrafts to get through the month, it’s at least a way to help people breathe easier a day earlier. It’s also a savvy move by Monzo to encourage more customers to use its current account as their sole bank account by getting their salary paid in. As the bank launched its signature hot coral cards as prepaid Mastercards, many people came to Monzo by using it as a secondary account. The challenger officially shut down its prepaid programme last April, moving everyone over to a current account.