Company information
Monzo is the most popular digital challenger bank in the UK (by customer numbers), and for a good reason. It’s free account is super easy to use, set up and manage, and the app is colourful and fun (as long as you can live with the loud, judgemental sound it makes every time you spend money!).
The only real drawback is the limit on free ATM withdrawals abroad, which is quite low compared to that of Starling, for example. For most people this won’t really be an issue, but if you are a bit of a globetrotter and often travel to countries where cash is still king, you might want to consider the alternatives.
All in all, Monzo is great if you’re looking for a mobile-first current account with almost no fees, a slick user experience and a young and fresh vibe. Whether you’re planning on using it as a primary current account for your day-to-day finances or as a secondary account when you travel, it does the job quickly, efficiently and with a degree of cheerfulness.
Cards
Overview of Monzo
Monzo is a challenger bank that operates without branches, offers a full current account, integrated savings accounts, and personal loans. Monzo customers love the service, and it received 5 out of 5 stars in our latest banking customer satisfaction survey.
Monzo offers three types of accounts: the standard Monzo account, Monzo Plus, and Monzo Premium.
How Does Monzo Work?
Monzo works like any normal current account. When you apply for an account, you’ll be issued with a bright coral contactless Mastercard. The account is entirely managed through the Monzo app, which is jam-packed with cool features and is much slicker than your average banking app.
Some of Monzo’s main features include:
- Get paid a day early.
- Salary sorter to divide your salary into spending, savings, and bills.
- Spending budgets to set budgets by category.
- Savings pots to split money into interest-earning “savings pots.”
- Bills pots for direct debits or standing orders.
- Instant spending notifications.
- Free cash withdrawals abroad, up to certain limits.
- No transaction fees abroad.
- Energy switching to get cashback.
- Joint accounts.
- Overdrafts, with the option to apply in the app.
- Compatibility with Apple Pay and Google Pay.
- Personal loans of up to £25,000.
How to Apply for a Monzo Account
UK residents aged 16 or over can apply for a Monzo bank account through the app without the need for proof of address. Opening a joint account with Monzo is also possible if both parties have regular Monzo accounts.
Monzo’s Account Opening Referral Scheme
Monzo offers a referral scheme where you and a friend can earn £5 each if you open a new Monzo account via an invite from an existing Monzo customer. Newbies need to make a card payment within the first 30 days to qualify for the reward.
Is Monzo Good to Use Abroad?
Monzo cards can be used abroad with ease, with no charges for card transactions and fee-free ATM withdrawals up to certain limits.
Saving with Monzo
Monzo offers a savings marketplace where you can open savings accounts with other providers directly from the Monzo app. You can also use Monzo’s “pots” to set money aside, but these do not earn interest.
The Monzo App
The Monzo app is user-friendly and packed with features for managing your finances. It also offers a ready-made fund investment option through BlackRock.
Monzo Personal Loans
Monzo offers personal loans ranging from £200 to £25,000, with a personalised quote provided before application.
Monzo Flex
Monzo Flex is a buy now, pay later (BNPL) option for account holders, allowing payments for purchases over £30 in instalments.
Monzo Fees and Limits
Monzo has various fees and limits for different transactions, including cash withdrawals, card payments, and cash deposits.
Monzo Plus
Monzo Plus is an upgraded current account that comes with additional features such as the ability to see all of your bank accounts in one place, virtual cards for safer online shopping, and more advanced spending categorization.
Is Monzo a Bank?
Yes, Monzo is a bank authorised in the UK by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA).
Is Monzo Safe?
Monzo is as safe as any other bank, with the money in your Monzo account protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
Monzo Customer Reviews
Monzo received positive reviews in our customer satisfaction survey, with users praising its user-friendly app and a wide variety of features. The app also scores well on app stores.
In summary, Monzo is an excellent choice for those seeking a mobile-first current account with minimal fees and a user-friendly experience. Whether you use it as your primary account or for travel, Monzo offers quick and efficient banking services with a fresh and cheerful vibe.
Pros
- Full UK current account – you can do all the stuff you can do with a normal bank and more.
- Apply quickly from the app without proof of address – you won’t be credit-checked unless you apply for an overdraft.
- Slick, fun app that is packed with cool features.
- Spend abroad with no fees at the Mastercard exchange rate.
- Open a savings account directly from the app with one of the providers Monzo works with.
- Deposit cash into the account at any store which shows the PayPoint logo.
- Fully FCA-licensed and FSCS-protected.
Cons
- No bank branches isn’t great for those who prefer face-to-face customer service.
- 3% charge for overseas ATM withdrawals over £200 – some other digital bank accounts (e.g. Starling Bank) have no such charges.