Getpaid early feature Monzo

Reading some of the posts from the other side on the get paid early feature, I’m getting the impression that some people are now coming to genuinely rely on getting paid early. I’ve had a look on their search and there’s at least a dozen separate threads on the subject which make intereresting reading.

Does anyone else find this reliance a bit disturbing? I absolutely realise that personal finances are entirely the responsibility and ownership of the individual, but surely this feature might be construed as facilitating a poor attitude to money management? Or perhaps I’m just looking at this at the wrong angle?

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It’s inevitable. When you’re going payslip to payslip and you have the option to get it a day early all that seems to end up happening is you spend all your money sooner. You quickly end up needing the money a day earlier.

I’ve never liked that feature. I’ve never seen how it’s ever been useful except to put people in a position of depending on it.

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I don’t understand the feature, to be honest

It’s a day early, but next month even if a day early is still a month away

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I think it’s a nice feature. I wouldn’t use it personally but I know people who struggle month to month and if it helps them, then I’m all for it.

Have to say that if you actually think about it, it actually feels quite predatory (similar to the daily fees for their old personal loans before it got banned by the FCA).

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And therein lies the issue with the feature I think. We’ll have to agree to disagree on this I fear. Those already ‘struggling’ coming to rely on a feature which in my personal opinion, really has no place in trying to achieve personal financial responsibility. I’d even go as far as to say, I think this type of feature should be banned altogether. Strong opinion I accept, but I honestly think there’s no place for features like this because I fear the most vulnerable will as is often the case, end up struggling even more. I hope that Starling Bank never introduce this.

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I don’t understand how getting paid early is predatory (when there seem to be no fees paid for the privilege). The only person who benefits is the customer. An overdraft or a loan or other credit facility could be, but this is simply giving people access to their money ahead of the time they would normally receive it?

I can see the upside to this, especially if you are able to get your money on a Friday rather than a Monday, although I have never used the service (my wages are not paid into my Monzo account, although I do use it for a few items).

I actually do agree that reliance on this is a bad thing. Occasional use to cover a difficult time is one thing, but if a customer uses it every week/fortnight/month, then Monzo should have some mechanism to identify and help customers to access money management facilities or something. Much like the loss of an oft-used overdraft, it would be devastating if this facility were withdrawn in the future and people are reliant on it.

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The real problem for those who rely on the feature, comes at Christmas. If they get paid 3 or 4 days early, then the next pay date (which is already 31 days away), is going to be an extra 3 or 4 days away.

It a fun feature to have (and other banks also do this, so Monzo have been very good at marketing the feature), but could cause some grief for anyone relying on it.

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I think the key word that crops up here, is reliance. It can’t be ignored that people are starting to rely on the feature, much like overdrafts are relied upon by many (not myself thankfully).

I just think it’s a very slippery slope for some folks to rely on the feature without thinking through the consequences of what they might ultimately without realising it, sleep walk into a situation they eventually cannot control.

I agree that perhaps it would be more responsible for banks to identify customers who are making frequent use of the feature, to step in and take control by suspending or withdrawing the feature for the sake of the individual concerned. That comes across as nannying, but unfortunately some folks need to be protected from themselves. Sadly there will be customers who end up in the dizzying spiral of early pay day, and that may in itself have devastating financial consequences.

This is why I approve of and encourage envelope budgeting; have your money set aside and suddenly that extra day you get it earlier just means that you can budget ahead faster, the money isn’t being relied on !

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Exactly. If you use this feature every month, then the only time that you actually benefit from it is the first time you use it. After that, it’s a month between each payday.

Very true. In trying to help themselves one month, they could well be making it worse for themselves the next month.

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And can’t switch away to another bank.

As I understand it, this feature only works because BACS operates on a three-day cycle. Your employer’s bank sends the money three (or however many) days in advance, ready for it to hit your account on the correct payday. Because the money has already been sent, Monzo can see that it’s due to credit your account tomorrow, so they let you have it early.

If BACS ever update their systems to send everything by Faster Payments instead, then this Monzo feature will no longer work because your wages would be sent and received on the same day.

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Depends where you work. For many, not all months are equal.

When I worked at a local authority, the pay cycle was ‘Third Thursday’. For us, this meant that there were four week months and five week months.

I was pretty young when I worked there and there were definitely some weekends where I would have loved to get at my cash a little early.

True, some people are still paid like that, but in that case I think you’d need to manage your finances better than simply getting your money a day early some months.

While I don’t have an account with Monzo, if I did and if my salary was being paid in to said account, I would definitely avail myself of this facility every month. If only to onwardly transfer my salary to an interest earning account. I would much rather the money be sitting in my account than sitting earning interest elaewhere. Over a weekend you’d earn interest for two more days.

Now controversially it’s clear many of the comments here aren’t from people trying to make ends meet on benefits, earning minimum wage, or struggling in any way. We might also have some life experience that we weren’t taught at school. We’re all different, and we should appreciate we don’t all live a very comfortable lifestyle with high credit card limits, investments accounts, and decent regular salaries.

I would prefer this to be an inclusive place so lurkers can learn about products and features, feeling free to ask questions, and not risk being judged and berated over their predicament or lack of financial prowess.

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I like the feature used it once to test it but that’s all.
Saves all of 9 hours in reality so I don’t really see the benefit.
Possibly over a weekend or bank holiday it might have some benefits but then you have over spent in some ways.

I think the feature its brilliant and it helps people who were going to be paid on Monday get the money on Friday which can help avoid overdrafts use so its a big positive for those in need.
Yeah yeah everyone should budget blah blah and never run out of money but things happen and its all very well to preach like its easy until you actually have little money left at the end.

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You should definitely get a Monzo account, then. You could have about £0.50 extra to spend per month (if your monthly salary is about £5,000 and you can get 2% interest). Although Santander deposit BACS payments early, too.

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I’m probably just cynical, but surely, getting paid early as a feature from any bank, is merely yet another marketing lure to attract customers?

As for utilising the feature to move one’s salary into an interest account for a couple of days just to earn a bit of interest, well unless you’re on a professional footballer’s weekly salary, in these times of virtually zero interest, it’s hardly going to make a significant contribution to anyone on a ‘normal’ salary.

My reasoning for starting the discussion on this topic in the first place was because I know exactly (albeit just about 3 decades ago!) what it’s like to be absolutely on the bones of your arse money wise. Been there, seen it, got the T-shirt. Never ever in my life do I want a knock at the door from bailiffs wanting immediate payment for Poll Tax that you just can’t pay. Thankfully, I managed to turn things around. I just think something like the getting paid early feature could compound the financial problems of those less fortunate.

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