Monzo launches new credit card that invests as you spend
Key Points
- Monzo has launched a new credit card - Aura - that can automatically invest cashback on purchases.
- The card offers 1% cashback on purchases at grocery stores and 0.5% on everything else.
- This cashback can be automatically invested into a pre-made or customised fund, and users can also choose to opt-out of auto-investing their cashback.
- Aura comes with a new steel card and a range of perks, including Google AI Plus, airport lounge access, and and Apple TV subscription.
UK neobank Monzo has launched a new Aura credit card that automatically invests up to 1% cashback on every purchase.
The new card is priced at £15 per month and is the UK’s first auto-investing credit card, automatically earning up to 1% cashback at participating UK supermarkets and 0.5% on all other pruchases.
The cashback amount can be automatically invested in fee-free Monzo investments, and customers will only be charged a fund management fee.
Customers can choose from a ready-made fund or build their own portfolio, and they can top up, withdraw or opt out any time.
Auto-investing can be turn on or off at any time, allowing the card to also function as a mare traditional cashback credit card.
The variable yearly interest rate on Monzo Aura is set at 29%.
Monzo Aura is available with credit limits of up to £15,000 and includes a range of partner perks that are worth £360 per year.
Perks included with a Monzo Aura account include:
- Apple TV subscription
- Google AI Plus
- Two airport lounge passes and fast tracks
Monzo will provide Aura account holders with a new, iridedescent steel card that sports a unique design and colourful blue-pink sheen.
Monzo said it is gradually rolling out its Aura credit cards and will let customers know when they are able to apply.
Existing Flex customers will be able to switch to Aura if they are eligible, although they won’t be able to have Flex and Aura accounts at the same time.
Monzo states that there is no impact on a user’s credit score if they apply for Aura and the system checks to see if they’re eligible.
For those who apply and don’t already have Monzo Flex, there will be a hard search on their credit file. Those who already have Flex will not be subject to this type of search.
