Monzo bids to cut costs with new fees for ATM withdrawals and lost cards
Monzo is to charge free users with a three percent charge for ATM withdrawals amounting to over £250 per month and a £5 fee for replacing lost cards.
Monzo has won over 4.4 million current account holders since its launch in 2015, , however the firm has been battered by the Covid-19 pandemic, reporting a £113.8 million loss last year and issuing a blunt warning about its ability to continue as a going concern.
Monzo says the new charge sheet will not apply to customers who do most of their banking with the company or avail themselves of its £5 a month premium service Monzo Plus.
“That’s why we’re asking people who take out lots of cash with us, but could do that for free with their other bank, to contribute towards those costs.
“It’s a similar story with card replacements. Most Monzo customers have never ordered a replacement card, but 1% of Monzo customers order more than one card each year, making up 35% of our total card replacement costs.
The changes have generated a negative response from some users.