Monzo could now pay off your council tax

Monzo has added council tax to its Billsback prize draw, meaning the bank could now settle a winning customer’s monthly council tax bill.

The addition is part of a wider update to Billsback terms confirmed by the digital bank this week. Over 700 providers are now eligible for the monthly draw, with council tax joining energy, water, broadband and mobile bills already covered.

Monzo will continue to pay back more than 1,000 bills each month, and the frequency of the prize draw itself remains unchanged.

Monzo has also revised how it calculates customer odds of winning. Probabilities will now be worked out twice a month, on the 1st and the 15th, with each calculation looking back across the previous 30 days.

Previously the bank ran a single calculation at the start of each month. A new in-app form lets customers suggest providers for inclusion in future, though Monzo has not committed to acting on every request.

Council tax sits outside the products most banking apps build features around. Most English councils raise the bill each April up to the 4.99% cap without needing a local referendum, putting it among the largest recurring outgoings on a UK household budget alongside rent or mortgage.

Bringing it inside Billsback gives Monzo coverage of a payment customers have little ability to shop around on.

Monzo has separately confirmed that every customer can now add one connected bank account or credit card to their app for free.

The feature was previously reserved for paying subscribers and brings basic external account aggregation in line with rival apps from Revolut and Starling. Customers on the Max plan keep their existing benefits, including multiple connected accounts and budgeting tools.

Customers need the latest version of the Monzo app to access the free connected accounts tier.

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