Monzo Review: Should you make the switch?

What is Monzo and is it a bank?

Monzo started life in 2016 as a prepaid Mastercard that could be topped up via its app and used to make free withdrawals abroad. The brand was founded by Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon and Gary Dolman, who all previously worked at rival Starling Bank*.

It built up a strong following and transformed into a fully-fledged banking brand after getting authorisation from the Financial Conduct Authority (FCA) in 2017 and launching a current account. Its prepaid card then closed, with users upgraded to its current account service.

Monzo markets itself as a bank that lives on your smartphone and now has more than 8 million customers using its debit card to both manage their money and spend around the world.

Monzo Features

• Salary Sorter - Automatically divide your salary into spending, saving, and bills the moment you get paid
• Spending budgets - Set spending budgets to control spending for different categories such as eating out and tracking how well you are doing for the month
• Savings pots - Create multiple pots to separate your money and save for goals. You can also set up automatic saving where spare change is rounded up and saved to one of your pots
• Investment pots - Pick from three different investment funds and start investing with just £1
• Bills pots - Manage your direct debits and standing orders from a bill pot
• Instant spending notifications - Instant notifications when spending to see what's leaving your account in real-time
• Free cash withdrawals abroad - Fee-free cash withdrawals in the European Economic Area (EEA) and up to £200 per month elsewhere on the free plan - a 3% fee thereafter (limits may vary as explained here)
• Fee-free spending abroad - Spend abroad for free with no additional charges added or an exchange rate markup fee
• Joint accounts - Set up a joint account with another Monzo account holder
• Overdrafts - Set up an arranged overdraft with Monzo. The amount you can borrow will vary depending on your credit file and you will be charged a variable rate of 19%, 29% or 39% EAR
• Loans - Apply for a loan up to £25,000 with Monzo
• Monzo Flex- Monzo has introduced the ability to buy now, pay later in 3, 6 or 12 instalments with Monzo Flex
• Get paid early - Get your salary or student loan paid in at 4pm the day before it's due. Click here for more information.
• Cashback - Activate cashback offers through the app to earn between 2% to 10% cashback with select retailers
• Shared tabs - Split multiple bills and payments between friends and easily keep track of who owes what
• International transfers - Monzo has partnered with Wise* so you can send money internationally with no hidden fees
• Apple/Google Pay - Pay with your Monzo card on Apple/Google Pay
• Track your mortgage - Monzo users can now track their mortgage in Monzo and see the monthly repayment amount and the total amount owed on the mortgage (Monzo connects to your Transunion credit file to find this information)

Monzo Subscriber Perks

• Get a free Greggs treat - Monzo Perks and Max subscribers are eligible for a weekly Greggs treat
• Get a free railcard - Monzo Perks and Max subscribers can get a free railcard and save a 1/3 of the price of eligible journeys
• Get an annual Uber One membership - Included with Monzo Perks and Max.
• Get a monthly cinema ticket at Vue - Included with Monzo Perks and Max.
• Insurance & Breakdown Cover - Monzo Max subscribers get worldwide travel and phone insurance, plus UK & Europe breakdown cover.

How does Monzo work?

Monzo currently offers a range of accounts, including personal, joint and business accounts.

Monzo offers all the usual current account services such as receiving your salary, setting up direct debits, standing orders, withdrawing cash with a contactless Mastercard and transferring money. But it also lets you manage your money as well as just hold it.

Monzo also prides itself on user feedback and has a busy online forum where users can raise concerns or suggest new features. If you decide to use Monzo then make sure you read the forums, as it will help you get the best from the product. Being able to influence the development of your bank makes a refreshing change.

How do I apply for a Monzo account?

You need to be a UK resident to get a Monzo card but it is working on offering additional international accounts in the future. If you live in the USA you can also sign up for a Monzo account. At present, you need to be age 16 or over to get a card, which may also be lowered in the future.

There are no Monzo branches. The only way to get a Monzo current account is through your smartphone. You will need to download the app on either an Apple or Android device. The first piece of information you need to enter is your email. Monzo will then send you an email so you can verify your account, which sends you back to the app to enter your name and date of birth, address and phone number. You will receive a text message with a verification code from Monzo once you have entered your number.

The app then uses Monzo’s back-office anti-money laundering and credit reference systems to verify your identity and you will also need to provide a photo ID, such as a driver's licence or passport, plus a five-second selfie video of yourself delivering a message it suggests.

These documents are uploaded, and if approved it will ask where to send your new contactless Mastercard and you can also immediately set up your PIN. You are then officially part of the Monzo revolution and can start setting up your spending alerts and budgeting.

Monzo Accounts

You can open both personal and joint accounts with Monzo. If you wish to open a Joint Monzo bank account, both account holders need to have a Monzo current account first. You can set up an Instant Access Savings Pot for your joint account too, earning 3.00% AER (variable). If you already have a joint account and wish to swap over to a Monzo joint account you can do so using the Current Account Switching Service (CASS).

Current Accounts

Monzo's paid plans used to be called 'Plus' and 'Premium'. These were replaced in April 2024 with the 'Extra', 'Perks', and 'Max' plans. Existing customers on the old plans could keep them, but all new customers must choose from the new account options.

Below, we compare Monzo's personal accounts.

	Free	Extra	Perks	Max
UK current account	YES	YES	YES	YES
Age limits	16+	18+	18+	18-69
Monthly Cost	FREE	£3	£7	From £17
Fee-free spending abroad	YES	YES	YES	YES
Pots	YES	YES	YES	YES
Instant spending notifications	YES	YES	YES	YES
Spending categories	NO	YES	YES	YES
Other bank accounts in Monzo	NO	YES	YES	YES
Custom categories	NO	YES	YES	YES
Credit insights	1 Credit Score	3 Credit Scores	3 Credit Scores	3 Credit Scores
Fee-free withdrawals within UK and EEA (3% charge thereafter)	Up to £400 every 30 days^	Up to £400 every 30 days^	Unlimited	Unlimited
Fee-free withdrawals abroad (3% charge thereafter)	Up to £200	Up to £200	Up to £600	Up to £600
Interest on Personal Instant Access pot (up to £100,000)	3.00% AER (variable)	3.00% AER (variable)	3.50% AER (variable)	3.50% AER (variable)
Free monthly cash deposits (at Paypoints across the UK)	NO	NO	3	3
Advanced roundups	NO	YES	YES	YES
Phone insurance	NO	NO	NO	YES
Travel insurance	NO	NO	NO	YES
Breakdown cover	NO	NO	NO	YES
Credit tracker	NO	YES	YES	YES
Auto-export transactions	NO	YES	YES	YES
FSCS protection	YES	YES	YES	YES

^You get unlimited fee-free withdrawals in the UK and EEA if you use Monzo as your main bank account rather than a spending card.

Monzo for Under 16s account

Monzo offers a free bank account for children aged between 6 and 15. A parent or guardian with a Monzo account is required to open one.

The key features of the Monzo Under 16s account are listed below:

• A debit card for spending
• Savings Pots to save for specific goals (these can be locked by parents)
• Interest on savings - in August 2025, Monzo announced that the Under 16s account will offer interest on savings and this is currently being rolled out
• Spending notifications and limits that parents can see and control
• See what your child's spending in your own Monzo app
• Set up regular payments to send kids pocket money
• Fee-free spending abroad for kids
• Freeze and unfreeze their card via your Monzo app (or theirs)

Once your child turns 16, they'll be able to open a Monzo 16-17 account which gives them more freedom. More on this option below.

Monzo 16-17 account

This account gives teenagers the freedom of an adult bank account but with blocks on age-related spending (such as gambling). It includes a contactless Mastercard, Apple/Google Pay, spending notifications, and fee-free spending abroad, but does not offer an overdraft.

• Contactless Mastercard debit card
• Apple/Google Pay
• Spending notifications
• Spending budgets
• Split bills
• Fee-free spending abroad (the same limits apply as the personal account)
• No overdraft

Monzo Business account

After months of testing, Monzo's Business account was open to everyone in early 2020. Below are the key features the Monzo business bank account offers, but for a more in-depth look at Monzo's Business account, read our independent Monzo Business bank account review.

• Free instant UK bank transfers
• Instant notifications
• Monzo pots
• Mobile and web access
• Additional integrated business tools
• Digital receipts and in-app invoicing
• 2 account options, Pro a paid-for option at £5 per month or Lite a free business account

Saving with Monzo

As well as budgeting, Monzo offers a simple way to save and earn interest. You can set up "Regular Pots" to transfer money into, or use the "round up" feature to save your spare change.

For earning interest, Monzo offers two main options:

• Instant Access Savings Pot - This account allows you to earn 3.00% AER (variable) interest. This rises to an exclusive 3.50% AER (variable) for customers with the Perks or Max plans. There is no minimum deposit.
• Instant Access Cash ISA - This account also allows you to earn 3.00% AER (variable), rising to 3.50% AER (variable) for Perks and Max customers. You can save your £20,000 annual ISA allowance here, and all interest is tax-free.

Monzo used to offer fixed-term savings accounts from external providers, but these were stopped for new customers in February 2025

Borrowing with Monzo

Monzo offers several borrowing features depending on your needs.

Monzo overdraft

Account holders can apply for an overdraft, but can currently only borrow a maximum of £3,000. You will be charged a rate of 19%, 29% or 39% EAR depending on your credit score, but you can check this via the Monzo app before completing the overdraft request. If you don't have an arranged overdraft but happen to go into an unarranged overdraft by mistake, the charges will be capped at £15.50 per month. Monzo says it will always notify its customers before they go into their overdraft and you have until midnight to add money into your account.

Monzo loan

Monzo offers loans to everyone who is eligible and users can apply for a loan via the app. Monzo asks you three questions to determine your borrowing amount without affecting your credit rating. Monzo promises transparency and more control with less hassle.

Monzo loan benefits:

• 5-minute application
• Receive the loan on the same day as you apply
• No fees for paying off your loan early
• 24/7 chat or phone support
• 12.4% APR on loans between £10,000 and £25,000
• 25.4% APR on loans up to £10,000

It is worth remembering that, as with all loans, the APR is a representative example and may not be the exact rate that you are offered. Monzo says that you are able to find out your personal rate before you apply.

Monzo loans are only currently available on personal current accounts.

Monzo Flex

Monzo Flex gives customers the ability to spread the cost of purchases over a series of months; 3 months can be interest-free and 6 to 12 months will be charged at a variable interest rate of 29% APR. Monzo will run an eligibility check in the form of a soft search, to see if you can be pre-approved for credit. If you choose to apply for Monzo Flex, a hard credit search will then appear on your credit file and if you miss a payment, your credit score will be affected in the same way as any other loan or credit product. Once you apply you will have a set credit limit which is likely to vary depending on your credit score and you can choose to flex as many payments as you wish as long as it remains within your credit limit.

Monzo Flex can be used wherever you spend with your Monzo card. There is also the ability to 'Flex' any purchases you made in the last 2 weeks. You will not be charged any early repayment fees if you decide to pay the amount off before your instalment plan ends and there is also the ability to edit your instalment plan to pay it over a longer period of time, should you need to. If you miss a Monzo Flex instalment you will have 7 days to make a payment, if you have not paid within 7 days Monzo will try to take a smaller amount and switch you to a longer instalment plan. If Monzo is still unable to take payment it will be reported to the relevant credit reference agencies which is likely to negatively impact your credit score.

For more information on Monzo Flex, read our 'Monzo Flex review'.

Investing with Monzo

Monzo has expanded its services to include investing, allowing you to manage investments alongside your current account in the app. The platform is provided in partnership with BlackRock, one of the world's largest asset managers.

What investment accounts are available with Monzo?

You can open three types of accounts:

• Stocks & Shares ISA - Invest up to your £20,000 annual ISA allowance and pay no UK tax on any investment gains or income
• General Investment Account (GIA) - A flexible account for investing outside of an ISA. There are no limits on how much you can deposit, but you may have to pay tax on your returns
• Self-Invested Personal Pension (SIPP) - A pension account where you can choose your own investments and benefit from government tax relief on your contributions

Investing in Monzo ready-made funds

To keep things simple, Monzo offers three ready-made investment funds based on your risk appetite:

• Careful - Lower risk, with a higher allocation to bonds
• Balanced - A medium-risk mix of global stocks and bonds
• Adventurous - Higher risk, with a high allocation to global stocks

You can start investing with £1 and you'll pay a 0.59% fee, which is made up of a 0.14% fund fee and 0.45% platform fee. If you're a Perks or Max member,  you'll qualify for a lower platform fee of 0.35%.

What are the fees for investing with Monzo?

When investing with Monzo, there are two main charges:

• Platform Fee - A fee charged by Monzo for holding your investments. This is typically 0.45% per year, but is discounted to 0.35% for customers on the Monzo Perks and Monzo Max plans.
• Fund Management Fee - A fee charged by BlackRock for managing the investment fund, which is around 0.14% per year.

"Build Your Own" ETF investments

In 2025, Monzo launched its brand new "Build Your Own" ETF investment feature offering investors 11 different ETFs managed by BlackRock. This includes a variety of iShares ETFs from BlackRock and allows investors to build a portfolio based on what's important to them.

The funds on offer explore different themes such as:

• Blockchain creators
• Tech focused
• Automation and robotics
• Healthcare Innovation
• Metaverse
• Clean energy
• American companies
• British companies
• Emerging markets
• European companies
• Global companies

Underlying fund fees range between 0.07% to 0.65% and are charged by BlackRock automatically. Monzo also charged a platform fee of 0.45% or 0.35% if you're a Perks or Max member.

Is Monzo safe to use?

Monzo is fully regulated by the FCA, so like any bank, it has to protect client funds and treat customers fairly. You also get the right to complain to the Financial Ombudsman Service if you are unhappy with how Monzo deals with any issues you raise. You also benefit from Financial Services Compensation Scheme protection on up to £85,000 of your money in a Monzo account, if it goes bust. This limit raises to £170,000 on a joint account.

It would be hard for a scammer to set up a Monzo account on your behalf as they would need to have access to your email and phone to start opening the account. They would also need to complete the two-step verification process which requires having your passport or photo-card driving license plus also providing a selfie video message, which would be hard to fake.

Monzo fees and charges

There are no charges for opening or running a Monzo current account. Payments in the UK, cash withdrawals in the UK (exclusions apply) and payments abroad are all free – other than the Mastercard standard exchange rate - with no added fees. You can deposit cash with Monzo at any PayPoint location across the UK, but you will be charged a £1 fee. For example, if you deposit £10, only £9 will reach your bank account. Monzo only allows you to deposit between £5-£300 at any one time and a maximum of £1,000 every 6 months. This reduces to £500 every 6 months if you are 16 or 17 years old.

Monzo uses Wise* (formerly known as Transferwise) for international payments, which prides itself on being more transparent and cheaper than banks. On the Wise site you can compare the cost to other banks, and in this case it admits it isn't always cheaper than some of the other banks as they don't charge a transfer fee.

If you are withdrawing cash abroad you will only be charged a 3% fee outside the EEA once you take out more than £200 in a 30-day period (the withdrawal limits are higher for Perks and Max accounts). For the majority, the only time you may incur a fee in the UK is if you have a Monzo overdraft and if you have an arranged overdraft you will be charged a variable rate of 19%, 29% or 39% EAR.

Monzo customers who use Monzo as a spending card rather than their main bank account may incur further fees. These include:

• 3% fee if you withdraw more than £400 in 30 days in the UK or EEA
• £5 fee for replacement cards due to loss

The fee changes primarily affect Monzo users that do not use Monzo as their main bank account or those that withdraw lots of cash or regularly lose their bank cards. If you do any of the following, it is unlikely you will be charged:

• Pay at least £500 every 35 days and have at least one active direct debit from the account
• Have a Department for Work and Pensions or Communities payment such as universal credit or state pension paid into Monzo every 35 days
• Have your student loan paid into a Monzo account every 8 months
• Share a joint Monzo account with anyone who does any of the above
• A Monzo Plus account holder

Monzo Bank Customer Reviews

Monzo has a score of 4.6 out of 5.0 on Trustpilot based on more than 59,000 reviews. Around 80% of customers rate the challenger bank as excellent, citing a good user experience and helpful budgeting features. However, 11% of reviewers rate it as bad, citing poor experiences with its live chat customer service and issues with accounts being closed. Overall, Monzo is rated "Excellent" on Trustpilot.

Alternatives to Monzo

There are a few challengers to Monzo’s banking app crown. Here is a quick overview of some Monzo alternatives you may wish to consider.

Monzo vs Revolut

Revolut offers free card transactions in 120 countries, fee-free transfers at the interbank rate in over 30 currencies and free ATM withdrawals up to £200 a month followed by a 2% fee, which is slightly cheaper than Monzo. You can also buy Bitcoin, Litecoin and Ethereum cryptocurrencies through the Revolut app. Its Lifestyle feature offers a range of tools including the recently launched eSIM global service. It has a basic free package as well as £3.99, £7.99, £14.99 or £45 monthly packages offering extras such as higher withdrawal limits, overseas medical insurance and concierge services.

More information on Revolut can be found in our Revolut review.

Monzo vs Starling Bank

Starling* is probably Monzo’s closest rival. It has an Easy Saver that offers a 3.00% AER on your savings and comes with many of the same budgeting features you might expect from Monzo. It also offers an in-app Marketplace so users can access other financial services and you can apply for a bigger overdraft than you can with Monzo. It was slightly ahead for entrepreneurs as it offered a business account long before Monzo, however, Monzo finally released its business account in early 2020.

Monzo’s app is slightly more intuitive and will inform you when your spending is getting too close to a set budget.

More information on Starling Bank can be found in our Starling Bank review.

Monzo pros & cons

Here is a quick overview of Monzo's main pros and cons.

Monzo Pros

• Easy to set up
• Good for budgeting
• Fee-free spending abroad
• Automatic saving
• Overdraft and Loans
• In-app investing from as little as £1
• Competitive savings interest rates

Monzo Cons

• Daily withdrawal and spending limits
• App-only - requires internet and no bank branches
• £1 fee for depositing cash at a local PayPoint
• Can only deposit a maximum of £1,000 cash every 6 months

Summary

Monzo has become one of the leading challenger brands and app-only banks. Its app is simple to use and has great functionality with lots of community-led development.

Monzo's budgeting features offer great insight into your spending and help you to analyse where your money goes each month. Some of these features are available for free, but most require an Extra subscription which costs £3 a month. Monzo also has cashback and investment features, allowing customers to earn cash back on select purchases and start investing with Monzo.

Its new packaged bank accounts come with a whole host of interesting perks like free railcards, free Greggs treat, a monthly cinema ticket and competitive instant account interest rates. Overall Monzo is a handy app that makes banking far more friendly, understandable and approachable.

 

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