Brief Look at Monzo Bank
The Monzo neobank was launched and registered in 2015 in the UK. It is a mobile digital bank, which is supervised by the Financial Supervision Authority and the Prudential Regulation Authority. It offers several account types, including free accounts. There are interest-bearing deposits, overdrafts, loans, and flexes. All features are available on the mobile app, and contactless payment by smartphone and plastic card is possible. Monzo cards are accepted wherever Mastercard is welcomed. Within the UK, withdrawals are free at any ATM. Around the world, you can withdraw up to £200 per month for free, with a 3% fee on this amount.
- Neobank Monzo has a valid license and works under the supervision of state regulators.
- Deposits are protected by the Financial Services Compensation Scheme where the amount of insurance is £85,000 per account.
- Mobile apps are intuitive and functional, work quickly, and are easy to use.
- The bank offers several options for deposits of interest, and the minimum deposit amount is £500.
- You can haven’t been an overdraft of up to £1,000 or take a loan of up to £15,000.
- The app allows you to accumulate information on other accounts and cards by transparently tracking income and expenses.
- There is a virtual and holographic card, a credit tracker, a smartphone, and international travel insurance.
- The digital bank's services are available only to residents of Great Britain, residents of other countries cannot open accounts at Monzo.
- The free account type is missing some features (e.g., no virtual card and no discounts on custom categories).
- With a free account, you can't make transfers abroad, with paid accounts the limit is £400 or £600 per month.
TU Expert Verdict
Chief Analytics Officer
Monzo Bank offers personal and business accounts, with products that include free, Plus, and Premium tiers for individuals and Lite or Pro options for businesses. Services span interest-bearing deposits from GBP 500, overdrafts up to GBP 1,000, loans up to GBP 15,000, and fixed-term savings at 1.16%-1.50% per year. Users benefit from a secure and intuitive mobile app, contactless digital and plastic cards, phone and travel insurance, and integration with Apple Pay or Google Pay. Monzo is regulated by the Financial Supervision Authority and Prudential Regulation Authority, and eligible deposits are protected up to GBP 85,000 under the Financial Services Compensation Scheme.
Drawbacks include exclusive availability to UK residents, low deposit interest rates, and restrictions for free accounts. Free personal accounts do not offer virtual cards or international transfers, and foreign ATM withdrawals beyond GBP 200 per month incur a 3% fee. Plus and Premium users are also subject to capped international transfers and currency conversion charges of 0.35%-2%. Monzo is most suitable for UK-based individuals and businesses looking for efficient digital banking, but may not be suitable for traders who prioritize global flexibility or high yields.
Monzo Bank Summary
| 💼 Main types of accounts: | Free, Plus, and Premium for individuals; Free and Pro for businesses |
|---|---|
| 💱 Multi-currency account: | No (sterling only, conversion at MasterCard exchange rate) |
| 💵 Deposit terms and conditions: | From £500, from 12 months, 1.16%-1.50% per annum, fixed |
| 💳 Loan terms and conditions: | Up to £1,000 overdraft, up to £15,000 credit, with flexes at 0% and 19% |
| ☂ Deposit insurance: | Yes (£85,000 per individual or legal entity) |
| 👛️ Savings options: | Intellectual pots and individual tax-exempt savings accounts |
| 📋 Types of payment: | Plastic card, virtual and holographic card, Apple Pay, Google Pay |
| ➕ Additional features: | Pay bills, split payments, phone, and travel insurance |
The key thing to remember is that the Monzo Digital Bank is available only to people with UK citizenship. However, it is not necessary to reside within UK territory because the bank works all over the world, without restrictions. Its cards are accepted wherever MasterCard payments are relevant. You can also use the Apple Pay and Google Pay payment app. Please find the bank's main parameters in the table below.
Monzo Bank Commissions & Fees
Registration is free. Individuals can use the standard account without limitations at no charge for a subscription fee. The Plus account with advanced features costs £5 per month, the Premium account costs £15 per month. Accounts differ in exclusive features and limits. For businesses (legal entities) the Lite account is free of charge, but the Pro account with additional features costs £5 per month.
Withdrawals from ATMs in the UK are free; in other countries, they are free for up to £200, beyond that, a fee of 3% of the withdrawal amount is charged. A commission for international transfers is fixed at €0.5. The commission for international exchange depends on the currencies used and can add 0.35%-2% of the amount converted.
The fee for overdraft transactions is 19%, 29%, or 39% depending on the type of transaction and the credit rating of the client. The fee for a loan of up to £7,000 is 24.3%, for a loan of up to £15,000 is 10.4%. For flexes, the fee is 0% if a short-term deferred payment of 3 payments is selected. For long-term deferred payments, broken down into 6 or 12 payments, there is a commission of up to 19% per annum (calculated individually). The bank doesn't charge any other fees.
We also compared Monzo fees with similar types of fees on other Digital banks.
| Broker | Overdraft fee | ATM Withdrawal Fee | International transfer fee | International exchange fee |
| Chime Bank | No | No | No | 3% (max.$5) |
| Monzo Bank | 19-39% | Free in the UK In other countries: - up to £200 - free - beyond £200 - 3% | €0.5 | 0.35%-2% |
| Revolut | No | Up to $350 - free - beyond $350 - 2% | 0.3% (min. $0.30, max. $6) | From 0% to 1% |
The Monzo digital bank provides a full range of modern mobile banking services. It has free accounts for individuals and legal entities. Loans and investments are available. The banking application is easy to use and secure. The bank provides insurance, it is possible to link Monzo accounts with accounts in other organizations. There is comprehensive income/expense tracking and analytics. The bank works with UK residents only.
Account Types
Investment Options
Monzo provides clients with classic deposits. The deposit shall be made for at least 12 months, the starting amount is £500. The interest rate for the free account and Monzo Plus is 1.16% per annum. For the Monzo Premium account, the rate is 1.50%. Note that deposits are fixed and the allocated amount is frozen for one year, you cannot withdraw it, and you cannot deposit or otherwise interact with the account.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of the deal and all the steps from signing up to withdrawal of profits.
Contacts
| Foundation date | 2015 |
|---|---|
| Official site | https://monzo.com/ |
Detailed review of Monzo Bank
Monzo is among the oldest digital banks in Europe and has been operating for over 7 years. During that time there have been no recorded cases of fraud, disputes, or unresolved situations with clients. The bank provides a one-currency account, so you can keep money on it only in pounds sterling, but when you make purchases in online stores, as well as when you transfer to accounts that accept funds in other currencies, pounds are automatically converted at the current MasterCard exchange rate.
Monzo Bank by the numbers:
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the company has over 5 million users;
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81% of customers recommend the bank;
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£0 for the standard account;
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up to 1.50% per annum on deposits;
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0% commission on short-term flexes
You can work with Monzo mobile bank via the internet on your PC or tablet. However, it is more convenient to do it via a mobile application, which can be downloaded from the App Store or Google Play. The application is free and installs in a few seconds. It has a high index of usability and absolute intuitiveness. All settings are ergonomically and logically grouped, data are presented in numbers and diagrams.
Useful features of Monzo Bank:
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Savings Pots. This feature rounds up the amount you spend for each purchase and transfers the difference to your savings account. You can set it to automatically defer on certain purchases or at specified intervals.
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Personalized Pots. This feature allows you to create one-click accounts for any purpose and customize them (e.g., utility bills, savings accounts, auto-transfer accounts to relatives, etc.).
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Traveling with Monzo. The function allows you to pay with the bank's card anywhere in the world as you would with a regular MasterCard. The bank doesn’t charge commissions, only a standard conversion fee at the MC rate.
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Energy switching. This function automatically switches the customer to electricity suppliers that use renewable eco-resources (if available in the region). It usually works out cheaper.
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Shared Tabs. A unique feature that allows you to share payments between several accounts. For example, after dinner at a restaurant, a part of the dinner check may be paid by a Monzo customer and apart by his friends from their respective accounts.
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Joint Accounts. A Monzo customer can combine his account in this bank with accounts in other banks even if they do not belong to Monzo bank. The accounts get a common credit rating.
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Monzo for 16-17. This account is for teenagers (people under 18). Some functions are limited (credits and overdrafts), and you can set limits on purchases.
Advantages:
There are free accounts for individuals and businesses, paid accounts to give extended functionality and increased limits.
Plastic, virtual and holographic cards are available; Apple Pay, Google Pay, Stripe payments, and PayPoint's transfers are available.
There are individually customizable suites, overdraft protection, credit and flex loan programs, and savings accounts.
You can log in to your user account using a personal computer, tablet, or smartphone (the application is available in the App Store and Google Play).
Opening an account is free, the user gets all the standard features and round-the-clock technical support (phone, chat, etc.).
Deposits of the bank's customers are protected by the FSCS by up to £85,000 per physical or business account.
There is a fine-tuned system of notifications and reporting, the application records all expenses/income, and displays them in clear easy-to-read charts.
You can set up limits on certain groups of purchases, as well as automate the setting aside of funds and the formation of savings.
During the seven-year existence of the bank, it has never been hacked, and the system of protection of funds and data complies with advanced standards.
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