What is Monese?
What is Monese?Monese was one of the first app-only bank accounts to launch in the UK.
The challenger bank was founded by Norris Koppel who found he was unable to open a bank account due to having no UK credit history or utility bills. This is a problem shared by many people who do not have loans or credit cards or who have recently moved to a new area, making it impossible to receive a salary or pay bills. Koppel decided to set up his own 100% mobile current account in 2016 and it now has over 2 million customers processing more than 3 billion transactions a year. It was also recognised as the best challenger bank at the 2016 European Fintech Awards and received €1.1m of funding from the European Commission for research and innovation.
Monese features
- Multi-currency accounts (GBP, EUR & RON)
- Mastercard pre-paid contactless debit card
- Lock your card in-app if lost or stolen
- Instabalance - see your exact balance when you open the app
- Link your bank account to Monese and manage your accounts from the Monese app
- Track your spending
- Instant spending notifications
- Monthly/weekly budgets
- Set up to 10 savings pots to save towards a goal
- Round up your spare change to save as you spend
- Earn interest on your money with a savings account with Raisin via the Marketplace
- Transfer money abroad in 19 different currencies
- Top up your account in a Post Office, PayPoint or Paysafecash
- Apple and Google Pay
- Link your Avios and PayPal accounts
- Invite a friend to Monese and earn up to £150 (up to £10 per friend you refer)
- Multilingual support team
- Build your credit history with Monese Credit Builder
- Receive money from abroad with a multi-currency IBAN number (subscription plan required)
How does Monese work?
A Monese account can be opened by anyone living in the UK or within the European Economic Area (EEA). You can either open an account by downloading the app through your smartphone or by using a link sent to your device via the Monese website.
There are no high street branches but you can easily open an account from your phone. Just download the app and follow the step-by-step instructions. Unlike mainstream current account providers, you won’t need to provide proof of address or have a good credit history. You will be asked to take a selfie video using your smartphone’s camera and to snap an ID document such as a passport issued by any country in order to pass Monese's money laundering checks. The Monese system will then verify your identity and you will receive your account number and sort code within minutes. This is much faster than a mainstream bank, where you may have to book an in-branch appointment and then wait for your card to arrive in the post.
You can immediately send and receive payments but will need to order your contactless MasterCard debit card through the app. Monese users still have to wait for their card to be delivered, usually within three to five business days or up to 14 internationally. Once it arrives, you can set up the card through the app using a four-digit activation code.
The Monese debit card has the same functionality as any other debit card. You can shop online, make in-store purchases, make ATM withdrawals anywhere in the world and use contactless payments. You can make top-ups, change personal information and access statements through the app at any time of day.
The app also supports Google Pay and Apple Pay, letting you make contactless payments with your phone. You can also access potentially lower-cost foreign currency exchange and international money transfers as Monese uses the wholesale currency exchange rate rather than setting its own rates.
Is Monese a bank?
Monese is not a UK registered bank account and is in fact an e-money institution that is regulated by the Financial Conduct Authority. This means that if you bank with Monese, your money is stored as e-money with its partner Edenred PrePay Solutions (EPS). As Monese is not a fully-fledged bank account it does mean that your money is not protected by the Financial Services Compensation Scheme (FSCS) but Monese says it 'safeguards' your money by placing it in a separate bank account with an authorised bank.
How much does Monese cost?
There are three types of Monese products, all offering free card usage and direct debits in your home currency. The table below summarises the immediate differences between the different account types.
| Simple | Classic | Premium | |
| Cost | FREE | £7.95/month | £14.95/month |
| Contactless debit card | Yes | Yes | Yes |
| First card delivery fee | £4.95 | FREE | FREE |
| Replacement cards | £4.95 | £4.95 | FREE |
| Virtual debit card | £0.30 per card | FREE | FREE |
| Currency account (open EUR & RON account at no extra cost) | Yes | Yes | Yes |
| Direct debits & Standing orders | Yes | Yes | Yes |
| Apple/Google Pay | Yes | Yes | Yes |
| Roundups | Yes | Yes | Yes |
| Debit card top-ups | 1.0% | FREE | FREE |
| Cash withdrawal | 2% fee per withdrawal | £500 free per month (2% fee thereafter) | £1,500 free per month (2% fee thereafter) |
| Free manual cash top-up at Post Office & PayPoint | 3.5% fee (min £3) | £400 free per month (3.5% fee thereafter) | £1,000 free per month (3.5% fee thereafter) |
| Card spending in foreign currencies | 2% fee | 0.5% fee | FREE |
| Local transfers | Inbound - FREE Outbound - £1 per transfer | FREE | FREE |
| International transfers | 2% fee, additional 1% on weekends | From 0.5% fee | FREE |
| Priority customer support | No | No | Yes |
| Credit Builder | £2.50 monthly fee | £2.50 monthly fee | £2.50 monthly fee |
| Personal loans | Yes | Yes | Yes |
Monese Insurance
Monese plans no longer come with any insurance coverage.
Monese bills protection and purchase protection insurance products were removed from all plans on 5th October 2024. A note on the Monese website confirms that any claims occurring on or after 5th October 2024 will be rejected and claims occurring before this date are still covered.
How to claim on a Monese Insurance policy
Claims occurring prior to the 5th October 2024 are covered and so if you need to claim on a Monese Insurance policy you can do so by visiting the 'Insurance' section which can be located under the 'Explore' tab. You then need to click 'Start a claim' and follow the on-screen instructions to complete the claims form. It is important you have any required documentation to hand in order to properly submit a claim. You can also submit a claim by clicking on the transaction you wish to claim for, as this will open a separate screen where you can click on the three dots in the top right corner of your page to start your claim.
Monese Credit Builder
Monese has a credit builder feature that allows users to build their credit score with the three main credit reference agencies: Experian, Transunion and Equifax for £2.50 a month. Those wanting to improve their credit score can do so by choosing a fixed amount to repay each month, between £30 - £100, for a period of 12 months. The money you pay is then stored in a locked pot and will be released once your final payment has been made in the 12th month.
By paying back the affordable fixed monthly rate Monese will report the repayments to the credit reference agencies which should in turn help to improve your credit score. After 12 months the pot will be unlocked and you will have the full amount returned back to your Monese account. The 12 monthly repayment history will have been reported to the credit reference agencies which should help to improve your score. One thing to consider is that using the credit builder with Monese may not see an immediate increase in your credit score and it may take 3-4 months before you start to see an increase in your credit score. The Monese credit builder is available to all UK Monese account holders aged between 18 - 75 years old and can be accessed via the Explore tab in the Monese app.
For more information on the Monese credit builder and how it works, read our article 'Monese Credit builder - what is it and how can it build and improve your credit score?'.
Monese Boost
Monese Boost is designed to help give your credit score a boost. You'll need to select a past card transaction within 14 days of purchase and up to a maximum value of £300. Monese will reverse the transaction and you can choose to pay it back within 3, 6 or 12 months. Interest is charged at 19.9%-39.9% APR variable. Based on a credit limit of £150 and APR of 29.9%, the total amount payable if you spend your limit of £150 immediately and repay the amount over 12 monthly instalments is £175.40.
Monese limits and account restrictions
The following account limits apply to a Monese GBP account and vary slightly for EUR and RON accounts.
| Monese GBP Account | Maximum limit |
| Maximum account balance | £40,000 |
| Cash top up (via Post Office) | £250 per transaction/£500 per day/£1,000 per week/£1,300 per month/£10,000 per year |
| Cash top up (via PayPoint) | £249 per transaction/£500 per day/£1,300 per week/£1,300 per month |
| Debit card top up | £3,000 per day (max 2 top-ups)/ £3,000 per month (max 10 top ups) |
| Card purchase limit | £4,000 per transaction/£7,000 per day |
| ATM withdrawal | £300 per day |
Is Monese safe?
Unlike mainstream banks, your money isn’t covered by the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 of savings if a provider goes bust. However, Monese is regulated by the Financial Conduct Authority as a registered agent of electronic money institution PrePay Solutions, which follows Electronic Money Regulations. Monese says 'We never lend your money to anyone and it’s always available to you, on demand. There’s also no upper limit per customer or account for safeguarding. This means that all the money within your Monese account is protected.'
Monese customer reviews
Monese has a Trustpilot rating of Excellent with 4.2 out of 5.0 stars from over 44,000 reviews. 69% of reviewers rate it 5 stars, citing excellent customer service and claiming it is easy to transfer money between accounts.
17% of reviewers rate Monese as 1 star. Some comments mention slow account opening, slow international transfers and some accounts being locked out. Recently, customers have complained about their accounts with Monese being blocked and having trouble regaining access to their money.
Alternatives to Monese
Below, we compare the basic account of Monese to some of its competitors' basic personal accounts. Each provider has additional accounts and more information about these can be found in the reviews.
Monese vs Monzo vs Starling Bank vs Revolut
| Monese | Monzo | Starling | Revolut | |
| Monthly Cost | Free | Free | Free | Free |
| UK registered bank account | No | Yes | Yes | No (Currently waiting for full banking licence to be approved) |
| Personal account | Yes | Yes | Yes | Yes |
| Business account | Yes | Yes | Yes | Yes |
| Overdraft | No | Yes | Yes | No |
| Borrowing options | Yes | Yes | No | No |
| Fee-free spending abroad | No | Yes | Yes | Yes^ |
| Free ATM withdrawals | No | Yes^ | Yes^ | Yes^ |
| Round up spending | Yes | Yes | Yes | Yes |
| Budgeting features | Yes | Yes | Yes | Yes |
| FSCS protection | No |  |
|
No (Currently waiting for full banking licence to be approved) |
^ Limits apply
Monese is not the only banking app available to UK customers. One of its closest competitors when it comes to international use is Revolut, which offers free card transactions in 120 countries, fee-free transfers at the Revolut 'real-time' exchange rate in over 30 currencies and free ATM withdrawals up to £200 a month (or 5 withdrawals, whichever comes first) followed by a 2% fee, compared to Monese that doesn't allow any free cash withdrawals a month and simply charges a flat 2% fee per withdrawal. You can also buy Bitcoin, Litecoin and Ethereum cryptocurrencies through the Revolut app. It has a basic free package as well as a £3.99, £7.99, £14.99 or £45 monthly packages offering extras such as higher withdrawal limits, overseas medical insurance and concierge services. Monese offers insurance policies for its subscription plan customers which is something that premium Revolut account holders can also benefit from. Monese, however, is currently the only one to offer bills protection should you be unable to work due to illness, accident or job loss.
There are other app-only providers that offer extra services beyond international spending, particularly when it comes to savings. Monzo lets users track their spending and build separate savings pots within the app. Users pay nothing abroad, subject to a maximum withdrawal of £200 a month and 3% after that. It also offers free cash withdrawals and an optional overdraft.
Similar to Monzo, Starling Bank lets you set savings goals and even offers interest on your balance at 3.25%. There is no charge for having an account and nothing to pay on UK or international withdrawals, but any transactions use the MasterCard exchange rate. Starling also charges 0.4% on international money transfers. Monese's basic account charges a 2% fee for any international spending on its Simple account and 0.5% on its Classic account. Premium account holders can spend abroad at no extra cost, however it is restricted to the following currencies GBP, EUR, RON and SEK. Currencies outside of this are subject to a 2% fee.
Pros and cons of Monese
Below, we've outlined the pros and cons of using Monese.
Pros of Monese
- Quick and easy to set up an account
- Spending categorisation and notifications
- Dual currency accounts
- Monese Credit Builder
Cons of Monese
- No overdraft
- Some account limitations as explained in the Monese costs comparison table above
- Free account has limited features
- Unable to spend abroad fee-free in certain currencies e.g. USD
Summary
In a world where people are increasingly mobile, both in terms of where they live and work and how they transact, Monese definitely has a role to play. Its app is useful for those regularly on the move between different countries and who need to send money abroad. It is especially useful if you travel between the UK and Europe regularly as you can easily switch between a UK and European account.
Monese was the first app-only account to launch a Bills Protection Insurance policy for its Classic and Premium subscription account holders, however, both of these products as well as its Purchase Protection product were removed in October 2024.
Monese does have limitations for some items that others provide for free such as cash withdrawals and spending abroad. However, the easy setup process makes it worth considering if you are struggling to get a current account elsewhere.
If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product. The following link can be used if you do not wish to help Money to the Masses - Starling
