Digital banks don't have branches, can be set up via an app and allow you to manage your money on the go. There are a host of digital banks on the market which we compare in our article, 'The best app-only bank in the UK' and in this article, we compare two of the leading digital banks Revolut and Monzo. To see how Revolut compares to Starling Bank, read our Revolut vs Starling comparison.
If you want to jump to key sections of this Monzo vs Revolut comparison you can do so using the following links:
Revolut vs Monzo - Which is best?
| Revolut | Monzo | |
| UK registered bank account |  |
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| FSCS protection | |
|
| Personal Account | |
|
| Business Account | |
|
| Direct debit/Standing order | |
|
| Overdraft | |
|
| Personal loan | |
|
| Money management features | |
|
| Round-up spending | |
|
| Fee-free spending abroad | Free up to £1,000/month | FREE |
| Fee-free cash withdrawals abroad and in the UK | Free up to £200/month | Free up to £200/month outside EEA Free up to £250/month in UK/EEA |
| Cash/cheque deposits | |
|
| Access to an interest-earning savings account | |
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| Connect other bank accounts to the app | |
Monzo Plus/Premium feature |
| Apple Pay/Google Pay | |
|
| Insurance policies | |
Monzo Premium feature |
| Invest in digital currencies | |
|
Revolut and Monzo are very similar in their setup and design and both offer a host of money management and budgeting features so you can get the most out of your money each month. Round-ups allow you to save as you spend and easily save for goals in pots that are separate from your main account balance.
You can also earn interest on your savings with both Revolut and Monzo. With Revolut you can do this via a savings vault and depending on the Revolut plan, you can earn up to 4.75% interest. With Monzo you can open a savings account with one of its partner banks and earn up to 5.45% interest depending on the account you open. Monzo has a choice between easy access and fixed-rate accounts and the longer you choose to put your money away, the higher the interest rate you can achieve.
If you want to deposit cash or cheques into your account, Monzo would be a better option as Revolut does not accept cash or cheque deposits.
Monzo charges £1 for each cash deposit into a PayPoint and you can deposit a maximum of £300 at any one time with a cash deposit limit of £1,000 every 180 rolling days. If you want to deposit a cheque into your Monzo account you can only do this via post. At present you have the option to invest in stocks or cryptocurrencies with Revolut and Monzo has recently announced it is launching Monzo Investments where existing Monzo customers can invest from £1 a month. Read our Revolut review and Monzo review for a more detailed insight.
Revolut vs Monzo - Accounts
| Revolut | Monzo | |
| Personal account | |
|
| Joint account | |
|
| Business account | |
|
| Teen Account | |
(16 & 17 year-olds) |
| Kids Account | (6 - 17 year olds) |
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| Multi-currency Account | |
|
Both Revolut and Monzo have a number of different accounts to choose from but Revolut does not currently offer a joint account, so if this is something that you are interested in, Monzo would be the better choice. If you have a Revolut standard plan you can get access to a free Revolut <18 account which allows your child to manage their pocket money via the Revolut <18 app. If you have more than one child, you can get access to more accounts with the Revolut premium subscriptions. Monzo does not offer an account for children, but it does have a Teen account which is the same as a Monzo current account but with age-restricted spending and no access to an overdraft.
Both Revolut and Monzo have monthly subscription plans that unlock additional benefits. With Revolut you can choose to upgrade to a Revolut Plus (£2.99 per month), Premium (£6.99 per month), Metal account (£12.99 per month) or Ultra account (£45 a month) and Monzo has a Monzo Plus (£5 per month) or Premium (£15 per month) account. More information on the subscription plans can be found in our Revolut and Monzo reviews.
Revolut vs Monzo - Fees
| Revolut | Monzo | |
| Monthly account fee | £0 | £0 |
| Subscription accounts | £2.99/£6.99/£12.99/£45 per month | £5/£15 per month |
| Fee-free spending abroad | Free up to £1,000/month then up to 1% fee | No charge |
| ATM withdrawals abroad | 2% fee (min £1) over 5 withdrawals or £200/month whichever comes first | Free up to £200/month outside EEA (3% thereafter)
Free up to £250/month inside EEA (3% thereafter) |
| ATM withdrawals in the UK | 2% fee (min £1) over 5 withdrawals or £200/month whichever comes first | Free up to £250/month (3% thereafter) |
| International Transfers | Varies depending on the currency. You can calculate the exact fee here | Send an international money transfer via Wise, fee information can be found here |
| Overdraft interest rate | No overdraft facility | 19%, 29% or 39% AER |
| Depositing cash | Does not accept cash deposits | £1 per deposit (limited free cash deposits for Monzo Plus and Premium accounts) |
| Replacement debit cards | £5 plus delivery fee | 2 free replacements then £5 thereafter in the UK
£30 fee if lost abroad |
When it comes to spending abroad, Monzo works out cheaper than Revolut as there are no restrictions on its fee-free spending abroad. However, if you want to withdraw cash abroad, Revolut is cheaper as it charges a 2% once you've exhausted its £200 per month fee-free limit compared to Monzo's 3%. Monzo does however allow you to spend up to £250 fee-free in a European Economic Area (EEA). Some of the allowances and fees do however vary depending on the account or plan you have with Monzo or Revolut.
Revolut vs Monzo - Spending abroad
| Revolut | Monzo | |
| Fee-free spending abroad | Free up to £1,000/month | No charge |
| ATM withdrawals abroad | 2% fee (min £1) over 5 withdrawals or £200/month whichever comes first | Free up to £200/month outside EEA (3% thereafter)
Free up to £250/month inside EEA (3% thereafter) |
| Exchange rate | Interbank | Mastercard |
Revolut and Monzo are very similar when it comes to spending abroad. If you don't need to withdraw cash, Monzo is cheaper than Revolut as it has no restrictions on transactions when abroad. When it comes to cash withdrawals Monzo and Revolut are like for like when spending within the fee-free limit. If you exceed this, Revolut comes in cheaper with a 2% fee compared to 3% with Monzo.
Revolut uses the Interbank exchange rate when exchanging money abroad compared to the Mastercard rate that Monzo uses. The rates are very similar and can vary. If you want to compare rates you can do so here:
Revolut vs Monzo - FSCS protection
| Revolut | Monzo | |
| UK registered bank account | |
|
| FSCS protection | |
|
Monzo is a UK-registered bank account which means that deposits up to £85,000 are protected by the FSCS. Revolut is not a UK-registered bank as it does not have a UK banking licence, therefore, it is regarded as an e-money institution. This means that your money is not protected by the FSCS, but Revolut says that your deposits are 'ring fenced' in an account with one of its partner banks.
Revolut vs Monzo - Rewards
| Revolut | Monzo | |
| Cashback | Opportunity to earn up to 10% cashback on accommodation with Revolut Stays | |
| Rewards | Benefit from cashback and rewards when you shop with certain retailers using your Revolut card | Access to rewards and offers with a Monzo Plus or Premium account |
| Insurance | Access to insurance benefits with Premium plans | Access to insurance benefits with Premium plans |
When it comes to cashback and rewards Revolut has a greater range of offers on the Revolut app that are available to all plan holders, including those on the free Standard plan. Monzo users can access rewards if they are signed up to a Monzo Plus or Premium account which comes with an additional monthly subscription fee.
Both Revolut and Monzo offer insurance products to subscription customers excluding Revolut pet insurance which is available for anyone who has a Revolut account. Monzo Premium gives customers access to phone and travel insurance while Revolut Premium, Metal and Ultra customers can access worldwide medical insurance as well as lost, damaged or delayed luggage insurance. Revolut Metal and Ultra plan holders can also benefit from car hire excess insurance and personal liability insurance while Ultra plan holders can get Trip and event cancellation insurance.
Revolut vs Monzo - Savings
| Revolut | Monzo | |
| Savings pots | |
|
| Round up spending | |
|
| Saving account | |
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| Interest rate | Between 2.29% - 4.75% depending on the Revolut plan | Between 3.75% - 5.45% with savings providers partnered with Monzo |
You can save into pockets and pots with Revolut and Monzo which are separate spaces within your main Revolut or Monzo account. These spaces mean you can save towards goals made easier with help from round-up spending which saves your spare change on all transactions in your account. If you wish to earn interest on your savings you can open a Savings Vault with Revolut or a separate saving account within the Monzo app.
Revolut vs Monzo - Lending
| Revolut | Monzo | |
| Overdraft | |
|
| Personal loans | |
|
| Business loans | |
|
| Buy Now Pay Later (BNPL) | |
|
Revolut does not currently offer loans to users in the UK which means that opening a Revolut account does not affect your credit score. If you are a Monzo account holder you can apply for an overdraft or personal loan. Monzo's overdraft allows you to borrow up to £2,000 with a variable interest rate of 19%, 29% or 39% EAR depending on your credit score.
If you want to apply for a personal loan you may be able to borrow up to £25,000. You can see how much you are able to borrow by applying via the Monzo app. Applying for credit with Monzo is likely to affect your credit score and Monzo reports to all three credit reference agencies, meaning Monzo is likely to show up on your credit report. Exactly what is reported can be found here.
Monzo also introduced Monzo Flex which is Monzo's take on Buy Now Pay Later (BNPL). With Monzo Flex you can spread the cost of any payment over a period of 3, 6 or 12 months. For more information on Monzo Flex and how it works read our 'Monzo Flex review'.
Revolut vs Monzo - Customer reviews
| Revolut | Monzo | |
| Trustpilot rating | 4.3/5 | 4.2/5 |
Revolut has a Trustpilot rating of 4.3 out of 5 stars from over 123,000 reviews. Monzo has a rating of 4.4 out of 5 stars from over 29,000 reviews.
75% of the 142,000 users have rated Revolut as 'Excellent' with customers commenting on good customer service and a good exchange rate. 10% of customers have rated it as 'Bad' and some customers have complained of issues with their accounts being restricted due to regulatory checks.
79% of customers that have reviewed Monzo rate it as 'Excellent' and many say that it is easy to keep track of your money, has great banking features and very easy to use when spending abroad. 12% of reviewers have rated it as 'Bad' with some commenting on the additional charges for depositing cash and the limits on withdrawing money.
Revolut vs Monzo - Summary
Revolut and Monzo are very similar in the features that they offer to customers but the biggest drawback with Revolut is that it is not a UK-registered bank account which means that your money does not benefit from FSCS protection. Revolut does refer to itself as a bank account, as you have a bank account number and sort code, but it is an e-money institution and therefore may work better as a pre-paid card for travelling abroad.
If you want to use Revolut and Monzo abroad there is little difference between the two. However, Monzo doesn't enforce fee-free limits when spending abroad whereas Revolut charges a fee of 1% or 0.5% for Standard or Plus users once you exceed the £1,000 fee-free limit.
If you want to withdraw cash abroad, both Revolut and Monzo have restrictions on fee-free cash withdrawals but Revolut is cheaper if you exceed the limit, only charging 2% per transaction compared to Monzo's 3%. If you sign up for a subscription plan with Revolut or Monzo this limit is increased but this does come at a monthly cost.
The other difference between the two is the exchange rate that they use when spending abroad. Revolut uses the Interbank rate while Monzo uses the Mastercard rate. More information on spending abroad with both cards can be found above in the 'Revolut vs Monzo - spending abroad' section.
Ultimately, Monzo is likely to be the better option if you want a UK current account with protection via the FSCS and if this is the case then Monzo is likely to be the best option. Revolut is an excellent alternative, however, particularly useful if you are heading abroad or want access to cashback and rewards.
