Would you like to get paid a day early? Monzo unveils 'Paid Early' novelty feature

20 August 2019

The fintech banking app says it has found a way to speed up payment of its customers' salaries

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Salaries and student loans are typically paid into bank accounts by employers or the government via a system called the Bank Automated Clearing System (Bacs). 

Monzo calls the Bacs system "outdated". It says that it typically takes three days from the day your employer pays your salary to arrive in your bank account. 

However, Monzo says most banks can "see" the payment coming through by 4pm the day before the money is due to arrive.

It says: "All banks could technically advance you the money at this point. Most banks choose not to, but we thought it was fair to give you the choice to get your money sooner." 

Monzo says its Paid Early function will help workers see their salaries a day earlier each month.

To use it, you'll have to have your salary paid into a Monzo account each month and it will have to be paid via Bacs (most are, but check with your employer if you're unsure). 

Is it worth it?

This latest novelty functionality is another in a long line of features that Monzo touts. While many of these features are no longer unique to the challenger bank, Moneywise is unaware of any other bank that does this.

However, the benefit of getting paid a day early are unclear. Month to month all it does is move your pay day by one day as you will always have to wait the same amount of time for next month's wage to arrive. 

Instead, this seems to be a novelty feature to encourage people to pay their salaries into their Monzo accounts.

Moneywise has reported recently on the struggle many challenger banking apps face to get people to fully switch their current account services, instead of using them as a secondary account. 

If you find yourself struggling month to month to get by with your current paycheck, you should consider if you're doing everything to budget your money. 

You can find out more about budgeting with our guide on how to make a budget. Plus, check out our great list of weird and wonderful budgeting tips and ideas too. 

Comments

Earlier Pay day

Well that would reduce their overdraft fee by one day but next month they will be back to the same situation and want it another day earlier. People need to learn to only spend what you have, don't use credit unless you pay it off each month and have enough to cover any credit in a separate rainy day account to clear it, and debt should stay with a person until paid, no easy get out systems.

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