1 - Contributing to a money pot
Lydia money pot is cheaper than its competitors with a commission only on entries made outside the mobile app.
The collection of funds by credit card via the form on the online page is subject to a commission of 2.5% of the transaction amount with a minimum of €0.10.
All Lydia fees are available here.
2 - Spending or using money from a Lydia money pot
A - “Verified account”
A user who doesn’t have a verified account is limited to a maximum of €150 per month on their Lydia app.
This user can collect money via a money pot. If the pot exceeds €150, he/she will have to get their account verified to use the money collected.
To do so, he/she will have to provide Lydia with information to prove his/her identity. More information here.
It is recommended that the verified account status is obtained as soon as the money pot is created, from the "Verified account" menu in "Profile".
B - Usage limits
When using a Lydia money pot, the limit on the number of outgoing transactions per month based on the user's subscription applies.
If the money pot holder or member is a Lydia user with no subscription, the limit will be 20 free outgoing transactions per month. Beyond 20 transactions, an outgoing transaction will cost 1.5% of the transaction amount.
If the user has a Lydia Blue or Lydia Black subscription, the number of outgoing transactions per month is unlimited.
There are limits on the total amount of transactions. This amount differs depending on the subscription.
A Lydia user with no subscription can make 20 outgoing transactions per month for free, up to a total of €1,000. If the €1,000 limit is exceeded, a transaction will cost them 1.5% of the transaction amount.
This amount is €5,000 for a Lydia Blue user. There is no limit for a Lydia Black user.
3 - Transferring the money to another bank account
If the user has a Lydia account with no subscription, he/she is limited on the amount of transfers to external accounts.
This limit is €500 per month. Beyond this amount, a bank transfer will cost 1.5% of the amount transferred.
To avoid this limitation, funds in a Lydia money pot can be used directly from the Lydia app using an Internet card, Lydia card or Apple, Google, Lydia or Samsung Pay.
Practical examples
Let's take two practical examples to illustrate a Lydia money pot’s limitations.
A - A €350 money pot
Mary is a Lydia user with no subscription, and she decides to create a money pot for her childhood friend Fred's 30th birthday.
Mary raises €350.
She uses Lydia from time to time, and this is the opportunity for her to discover Lydia virtual cards, which she can use directly with her smartphone. She therefore pays in-store with her phone and uses the money from the money pot to buy a ski jacket for €350.
This transaction counts towards the 20 monthly transactions she can make for free, for a maximum of €1,000. Thus, if this is the first transaction of the month that she makes with Lydia, she can make another 19 transactions for €650 (€1,000 – €350) free of charge during the current month.
Her Lydia money pot is completely free of charge as it falls within the usage limits of her Lydia account with no subscription.
With a competitor charging 4% commission, this money pot would have cost Mary €14.
B - An €8,000 money pot
Alfred and Peter are organizing a Lydia money pot for their wedding.
They collect €8,000.
The use of this money may generate fees for Alfred who was using Lydia without a subscription (and is therefore entitled to 20 free outgoing transactions per month for a total of €1,000 per month; €500 of free transfer(s) to another bank account per month).
Transferring €8,000 to another bank account could generate (€8,000 – €500) * 1.5% = €112 in fees. This is an opportunity for Alfred to switch to Lydia Black.
It makes more sense for Alfred to subscribe to Lydia Black for €9.90/month or €99/year. He can then use all of Lydia’s features without any limit on his wedding money pot.
With a competitor charging 2.9% commission, this money pot would have cost Alfred €232.