Monzo introduces cashback feature
Monzo launches cashback feature just in time for Christmas.
You can now earn cashback using your Monzo debit card, online and in-store. Monzo’s new feature offers between 2% and 10% cashback at selected brands. It’s just up to you to pick which offers you want to take advantage of.
How does Monzo cashback work?
Monzo isn’t offering blanket cashback on all spending. Instead, the amount of cashback you earn will depend on which brands you’ve picked.
Within the app, you’ll need to pick your offers and tap to activate before you spend. Then, the next time you use your card with that brand, you’ll earn between 2% and 10% in cashback depending on the retailer.
You’ll be able to view how much you’ve earned instantly and the money will hit your account around 3 to 4 days later.
Where can you earn cashback?
The key thing to understand is that Monzo’s cashback offers will change each month. However, you can set up notifications in your Monzo app so that you’re told when new cashback offers are available. The offers that you will see are tailored to you and your shopping habits.
At the time of writing, Monzo customers can earn cashback with well-known brands such as Asda, Disney+, Gousto and National Express.
Is Monzo’s cashback any good?
Monzo’s cashback offer is interesting. It has chosen to follow the same approach that the likes of Revolut and Lloyds Bank have taken, where you earn different levels of cashback with different brands. This means that it depends on whether you already shop at those brands, as to how much cashback you’ll earn.
When you compare this with Chase, which offers new customers 1% cashback on all spending (up to £15 a month), it doesn’t carry quite the same punch.
Other digital banks also offer more in the way of interest than Monzo. Starling is currently offering 3.25% AER on balances up to £5,000. Meanwhile, Kroo Bank offers 4.35% AER on balances up to £500,000.
However, Monzo repeatedly scores well in terms of customer satisfaction, both in Finder’s own customer satisfaction awards and in the Ipsos personal banking service quality survey. So while its cashback offer may not be top of the market, there are other things to consider. If you’re looking for a new bank account, check out our guide to the best bank accounts in the UK.