I’ve been keeping an eye on an interesting issue with foreign currency. When withdrawing currency it takes a day or two for the rate to settle, and your 100€ can change from being £92.20 to £92.31 (completely made up numbers used as an example )
Starling seems to be near enough spot on every time, it will change by a few pence at most. Monzo however, was advertising a penny more; 1.12€ instead of Starling’s 1.11€, suggesting you get a better rate with Monzo but then by the time it settled it would settle at 1.11€ meaning instead of a couple of pence, the rate was often changing by 30 or 40 pence compared to Starling’s single digit change.
Yesterday I did withdrawals from both, both said 1.11€ to £1,
Once I’ve taken the cash out I always move the money out of Monzo back to Starling leaving a zero balance, so if the currency changes against the pound I slip into an unauthorised overdraft for a few hours until I move a few pence back. This morning I woke up to this:
I took considerably more out of the Starling account and yet the currency fluctuation on almost £300 was 9p. With Monzo it was 23p on less than £50. Given they both use the Mastercard rate, I can’t understand why there was such a large difference, and often seems to be?