Article 50: What does it mean for your money?

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If you were hoping for a special Brexit ‘get out clause’ you’re probably not going to be happy with the news that last week the UK formally triggered Article 50. This has officially started the two-year negotiation process to leave the European Union. The government has got a monumental task on their hands; they have to make sure they cut a deal that all the 27 remaining EU states accept, whilst getting a good deal for the UK. For most people, the worry of leaving the EU has been with their rights (in particular their right to live, work and travel freely across the EU) and the effect Brexit will have on their finances. One thing that has been causing most of the uncertainties is the speculation about what might happen, and not much by way of specific plans.

To try to clear up some confusion about what’s happening and it’s effect on your money, let’s have a look at what we already know.

Since the initial Brexit vote was announced, Sterling has experienced a fall against both the dollar and the euro and trying to predict any massive rises is difficult because of all the uncertainties mentioned above. One thing we do know is that things have become more expensive, particularly things that have been imported or from a non-UK supplier. Currently, 53% of all imported goods into the UK are from other EU states. This has also affected the price of other imported services – like gas and electricity. The wholesale prices have risen which has had a negative effect on the prices consumers pay. For now, there is very little anyone can do, as until the exit agreements are finalised in 2019, there will always be a certain level of speculation in the market.

When it comes to things like your holiday money it’s a good idea to make sure you are getting the best deal possible. If you want to use cash then make sure you buy it ahead of time, do not wait until you are at the airport as the rates are typically not as good. Alternatively, a better way to spend is to get yourself a Monese card. Monese gives you full access to your money abroad, without any of the excessive charges and fees traditional banks apply when you use your card overseas. Find out more here.

As for savings, one silver lining to come out of Brexit is that all money in UK banks is now protected at a higher rate than before. You will be covered by the UK’s Financial Services Compensation Scheme for any losses if a bank should collapse (like what nearly happened in the 2008 crash) to a tune of £85,000 (it used to be up to £75,000).

Another real issue people have comes with the uncertainty of life in the UK after it’s left the EU. There has been much talk about workers rights (especially that of current EU citizens in the UK) and what the impact of leaving the EU will have on their life here. As it stands, the UK is still in the EU and will be until some time in March 2019 (although this too is not strictly ‘set’, there are many things for the government to work through, and it’s not been done before so who really know’s how long it will take?). Until we know otherwise, all you can really do is carry on as normal. There has been nothing so far to suggest that anything will change drastically right this instant.

As for Monese, we will still continue to deliver the great banking service that we always have. We have always planned to take in consideration any governmental changes, and Brexit was one of the changes we had anticipated. Despite the uncertainties that Brexit has revealed, Monese will continue to offer banking accounts to any UK or EU citizen that may want or need one. There are also exciting times ahead with new services and product launches that will benefit all our customers Europe-wide.


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