Find yourself living paycheck to paycheck every month? The app-only bank Monzo has launched a feature that allows you to get your hands on your salary a day early, at no extra hassles to you.
What's Get Paid Early?
Monzo announced on 21st August that they've built a new feature called 'Get Paid Early'. This feature allows you to access your salary or student loan a day before you are due to get paid. Monzo says 'There's no cost or hassle. Just more time with your money.'
How does Get Paid Early work?
Monzo pays you your salary early by advancing the payment into your account. It is able to do this because most salaries are paid via BACS (Bank Automated Clearing System), and this allows Monzo to advance your salary to you as it can pretty much confirm the money is going to arrive from your employer.
Monzo says that the BACS system is 'outdated' so they wanted to 'speed things up'. It advises that most banks could choose to do the same, but they just don't want to, which Monzo did not think was fair.
How can I use Get Paid Early?
To be eligible for Get Paid Early you need to:
- Be a Monzo customer
- Have your salary paid into your Monzo account via BACS
How can I have my salary paid directly into my Monzo account?
If you do not yet have your salary paid directly into your Monzo account you can do so by opening the app and selecting 'Add Money' and select 'Add Salary'.
You then have the option to add your salary manually or move everything over to Monzo, via the current account switching service, which includes Direct Debits, standing orders and bills.