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 now has more than 15 million personal and business customers.

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
• Spending pots - Budget with up to 20 separate pots to help manage your spending
• 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
• 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 - Unlimited fee-free cash withdrawals in the European Economic Area (EEA) if Monzo is your main bank and up to £200 per month elsewhere on the free plan - a 3% fee thereafter (limits may vary)
• 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 up to £2,000. 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
• Investing - choose between 3 ready-made funds or build your own
• Loans - Apply for a loan up to £35,000 with Monzo
• Credit Cards - Monzo Flex gives you the ability to pay in full or in up to 3 months interest free (for purchases over £100) and Monzo Flex Build can help you build your credit score over time 
• Investing - There are 3 options a Stocks & Shares ISA, a General Investment Account (GIA) and Self-Invested Personal Pension (SIPP)
• Get paid early - Get your salary or student loan paid in at 4pm the day before it's due
• 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
• 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

The following perks are available to Monzo customers who subscribe to the Monzo Perks and Monzo Max plans:

• A free Greggs treat weekly
• A free annual railcard which saves you up to 1/3 of the price of eligible journeys
• An annual Uber One membership
• A monthly cinema ticket for Vue Cinemas (plus 10% off food and drink)
• Insurance & Breakdown Cover (Worldwide travel and phone insurance, plus UK & Europe breakdown cover - Monzo Max only)

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 aged 16 or over to get a Monzo card.

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.

You may be asked to verify your address with a document such as a utility bill, council tax statement or tenancy agreement.

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 you then choose the type of account you wish to open and you will then be sent your new contactless Mastercard.

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 up to 3.25% 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 £17¹
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
Connect other bank accounts and credit cards to Monzo	NO	YES	YES	YES
Custom categories	NO	YES	YES	YES
Credit insights	1 Credit Score	2 Credit Scores	2 Credit Scores	2 Credit Scores
Fee-free withdrawals within UK and EEA (3% charge thereafter)	Up to £400 every 30 days²	Up to £400 every 30 days²	Unlimited	Unlimited
Fee-free withdrawals outside the EEA (3% charge thereafter)	Up to £200 every 30 days	Up to £200 every 30 days	Up to £600 every 30 days	Up to £600 every 30 days
Interest on Personal Instant Access pot (up to £100,000)	2.75% AER (variable)	2.75% AER (variable)	3.25% AER (variable)	3.25% AER (variable)
Free cash deposits (at Paypoints & Post Offices across the UK)	NO	NO	3 per month	3 per month
Advanced roundups	NO	YES	YES	YES
Worldwide phone insurance	NO	NO	NO	YES
Worldwide travel insurance	NO	NO	NO	YES
UK & European breakdown cover	NO	NO	NO	YES
Monzo Savings Challenge	NO	YES	YES	YES
FSCS protection	YES	YES	YES	YES

¹Must have the account for a minimum of 3 months ²You get unlimited fee-free withdrawals in the UK and EEA if you use Monzo as your main bank account rather than a spending card. (Savings rates correct as of 24/06/26)

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)
• 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)
• Option to open a savings account with 2.75% AER (variable)
• Spend with Apple Pay and Google Pay when they turn 13
• Option to add second family member ro help monitor the account

Once your child turns 16, they'll be able to open a Monzo 16-17 account which gives them more freedom, or they can keep their Under 16 account until they are 18. 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
• Savings pots
• Split bills
• Fee-free spending abroad (the same limits apply as the personal account)
• No overdraft
• Option to open a savings account with 2.75% AER (variable)

Monzo Business account

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
• Fee free spending abroad
• Instant notifications
• Monzo pots
• Mobile and web access
• Additional integrated business tools
• Digital receipts and in-app invoicing
• Deposit cash and cheques
• 3 account options, Lite (free), Pro (£9 per month) and Team (£25 per month)

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 2.75% AER (variable) interest. This rises to 3.25% AER (variable) for customers with the Perks or Max plans. There is no minimum deposit.
• Select Access Savings - This account allows you to earn 3.15% AER (variable) interest. This rises to 3.65% AER (variable) for customers with the Perks or Max plans. There is a £500 minimum deposit and if you make more than 2 withdrawals the rate of interest will reduce to 2.60% AER (variable) and 3.10% AER (variable) respectively.
• Instant Access Cash ISA - This account also allows you to earn 2.75% AER (variable), rising to 3.25% AER (variable) for Perks and Max customers. You can save your £20,000 annual ISA allowance here, and all interest is tax-free.
• Select Cash ISA - This account also allows you to earn 3.15% AER (variable), rising to 3.65% AER (variable) for Perks and Max customers. Like the Select Access Savings account There is a £500 minimum deposit and if you make more than 2 withdrawals the rate of interest will reduce to 2.60% AER (variable) and 3.10% AER (variable) respectively. 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 £2,000. 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 there will be no charge or fees for rejected payments. Monzo will try to reject payments that will take your balance below zero but are unable to do this with offline payments such as in-flight payments.

Monzo loan

Monzo offers loans up to £35,000. You will be asked three questions to determine if you are eligible and how much you can borrow. Doing this will not affect your credit rating.

Monzo loan benefits:

• Receive the loan on the same day as you apply
• No fees for paying off your loan early
• No fees for late payment
• Choose your repayment date
• 24/7 chat or phone support
• 10.2% APR on loans between £10,000 and £25,000
• 21.8% 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. There is a personal loan calculator which will provide a repayment estimate.

Monzo loans are only currently available on personal current accounts.

Monzo credit cards

Monzo offers two types of credit card to current account holders. You can check if you are eligible before applying without impacting your credit score.

Monzo Flex Purchase credit card

• Can choose to "Flex" your purchases meaning you can pay them over 3 months without paying interest (only applicable for purchases over £100)
• Can Flex at check out or up to 2 weeks later
• Up to £10,000 starting credit limit
• No fee for late payments as long as it is made within 7 days
• No fees for using abroad (only Mastercard's exchange rate)
• 29% Representative APR (variable)
• Earn cashback on selected purchases

Monzo Flex Build credit card

• Can help build your credit score
• Up to £750 starting credit limit with up to 2 possible credit limit increases in the first year
• No fees for using abroad (only Mastercard's exchange rate)
• 39% Representative APR (variable)
• Free credit insights
• Some applicants may have to pay a security deposit based on their credit history

Investing with Monzo

Monzo also offers investing services, 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 shares and bonds
• Adventurous - Higher risk, 100% is allocated to shares

You can start investing with £1 and you'll pay a 0.39% fee, which is made up of a 0.14% fund fee and 0.25% platform fee. If you're a Perks or Max member, you'll qualify for a lower platform fee of 0.20%, making your overall fee 0.34%.

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 0.25% per year, but is discounted to 0.20% for customers on the Monzo Perks and Monzo Max plans.
• Fund Management Fee - A fee charged by BlackRock for managing the investment fund, this fee varies depending on the fund you invest in.

"Build Your Own" ETF investments

In 2025, Monzo launched its brand new "Build Your Own" ETF investment feature, they now offer investors 12 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
• Short-term bonds

Underlying fund fees range between 0.07% to 0.65% and are charged by BlackRock automatically. Monzo also charge a platform fee of 0.25% or 0.20% if you're a Perks or Max member.

Is Monzo safe to use?

Monzo is a fully licensed UK bank regulated by the FCA and PRA, 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 £120,000 of your money in a Monzo account, if it goes bust. This limit raises to £240,000 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. If you are a Monzo Perks or Max customer you will get 3 free cash deposits each calendar month. You can only deposit up to £750 each calendar month and there is a limit at PayPoints of £300 in one deposit.

When receiving Euros or another foreign currency there will be a 1% currency conversion fee which is capped at £1,000. You may be charged other fees out of Monzo's control, such as a fee from the bank sending you the money.

When sending a payment in any foreign currency, there will be a charge made up of a fixed fee and a variable fee. This fees are dependent on where and what currency you are sending but the fixed amount will be no more than £9.00 and the variable fee will be between 0% and 1.80%.  For foreign currencies not supported by Monzo, they use Wise*.

If you are withdrawing cash abroad you will 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.

If you do not use your Monzo as your main bank account then you 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

For your Monzo account to qualify as your main account you must fulfil one of the following requirements:

• 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 in the last 8 months
• Share a joint Monzo account with anyone who does any of the above

Monzo Bank Customer Reviews

Monzo has a score of 4.6 out of 5.0 on Trustpilot based on more than 69,000 reviews. 81% of customers rate the bank as excellent, citing how simple and easy it is to use, positive experiences when using abroad as well as saying how good it is for savings and budgeting. However, 10% 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 buy a wide range of cryptocurrencies including Bitcoin, Litecoin and Ethereum through the Revolut app. It has a basic free package as well as £3.99, £7.99, £14.99 or £55 monthly packages offering extras such as higher withdrawal limits, overseas medical insurance and an eSim global data plan. There is also the option to purchase a Revolut eSim with a range of data plans.

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 competitive interest rates 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 at a slightly lower rate. Starling just has the option of a free bank account there are no paid for plans and offers fee free spending abroad with a daily £300 cash withdrawal limit.

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 (3 free deposits a month for Perks and Max customers)
• Can only deposit a maximum of £750 cash every month

Summary

Monzo has become one of the leading challenger brands and app-only banks and is now trusted by over 15 million customers. Its app is simple to use and has great functionality with lots of community-led development.

Monzo's budgeting features provide clear insights into your spending and help you analyse where your money goes each month. While core features are available for free, upgrading to a paid plan  unlocks advanced tools and access to the Monzo Savings Challenge. Monzo's Perks and Max plans include appealing perks such as free railcards, complimentary Greggs treats, Vue cinema tickets, and enhanced interest rates.

Monzo also has cashback and investment features, allowing customers to earn cash back on select purchases and start investing with Monzo. Overall, Monzo is a highly capable app equipped with features that make managing your finances straightforward.

 

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