Monzo business banking review
Monzo is a UK-based digital bank offering personal and business banking services with a strong focus on user-friendly mobile banking, budgeting tools, and transparent fees. It is popular among millennials, freelancers, and startups due to its intuitive app and fee-free everyday banking features.
Key features of Monzo
1. Personal and business current accounts
- Free and premium accounts: Standard personal accounts are free, while Monzo Plus and Premium offer extra features.
- Business banking options: Free and paid business accounts with additional financial tools.
- FSCS protection up to £85,000: Ensures deposit security.
- Instant transaction notifications: Real-time updates on spending.
- Virtual and physical debit cards: Supports Apple Pay and Google Pay.
2. Budgeting and savings tools
- Spending categories: Automatically categorises transactions to help track expenses.
- Pots for savings: Separate money into different pots for better budgeting.
- Round-up savings: Automatically rounds up transactions and saves the difference.
- Interest on savings: Competitive interest rates on savings pots.
3. Payment and transfer options
- Faster Payments, BACS, and CHAPS: Supports quick and secure transactions.
- International money transfers: Powered by Wise for competitive exchange rates.
- Bill splitting and shared tabs: Easily split bills with friends and housemates.
- Direct debits and standing orders: Automate recurring payments.
4. Overdrafts and lending
- Overdraft options: Available up to £2,000, with transparent fees.
- Personal loans: Borrow up to £25,000 at competitive rates.
- Buy now, pay later (Flex): Spread payments over time for certain purchases.
5. Digital banking experience
- App-first banking: Fully digital with no physical branches.
- Biometric login: Secure access with fingerprint and facial recognition.
- 24/7 customer support: In-app chat and phone support available.
- Integration with third-party apps: Open Banking allows connectivity with other financial tools.
Monzo fees and pricing
1. Account plans
| Plan | Monthly Fee | ATM Withdrawals | Foreign Transactions | Extra Features |
|---|---|---|---|---|
| Monzo Free | £0 | Free in UK, up to £200 abroad | Free in Europe, 3% outside | Basic banking features |
| Monzo Plus | £5 | Higher ATM limits | Fee-free abroad | Virtual cards, custom categories |
| Monzo Premium | £15 | Unlimited withdrawals | Fee-free abroad | Travel insurance, metal card |
2. Transaction fees
- UK transfers: Free.
- International transfers: Wise-powered rates and fees apply.
- ATM withdrawals: Free up to limits; charges apply beyond that.
Pros and cons of Monzo
Pros
- User-friendly app with advanced budgeting tools.
- No monthly fees for standard accounts.
- Instant transaction notifications.
- FSCS protection up to £85,000.
- Seamless integration with Open Banking tools.
- Competitive lending and overdraft options.
Cons
- Limited in-person banking (no branches).
- International ATM fees after free limit.
- Some features require paid plans.
- Cash deposits require PayPoint and incur a fee.
How Monzo compares to competitors
| Feature | Monzo | Starling Bank | Revolut | Monese |
|---|---|---|---|---|
| Free current account | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | No | No |
| Budgeting tools | Yes | Yes | Limited | Yes |
| International transfers | Yes (via Wise) | Yes | Yes | Yes |
| Overdraft & loans | Yes | Yes | No | No |
| Cash deposits | Yes (via PayPoint) | Yes (via Post Office) | No | Limited |
| Ideal for | Everyday banking, budgeting | SMEs, freelancers | Global users | Expats, travellers |
Who should use Monzo?
- Freelancers and gig workers: Flexible business and personal accounts with budgeting tools.
- Everyday users: Free UK banking with instant notifications.
- Travellers: Competitive foreign exchange rates and no fees on card payments abroad.
- Individuals seeking digital-first banking: A seamless mobile experience with Open Banking features.
Our verdict
Monzo is a modern digital bank offering fee-free everyday banking, powerful budgeting tools, and a seamless app experience. It is ideal for freelancers, digital nomads, and those who prefer managing finances via mobile.
However, limitations on cash deposits, ATM withdrawal fees abroad, and some premium features behind a paywall may not suit all users. For those looking for a digital-first bank with strong budgeting and spending tools, Monzo is one of the best choices in the UK banking market.