Monzo review

Monzo is a UK-based digital bank that lets customers open a full bank account directly from their mobile phones. It has a number of innovative features that set it apart from other online banks. The only downside for Canadians at the moment is that you need to be a UK resident to apply for an account. However, there are now some good Monzo Canada alternatives to consider.

Expert review

Monzo is a bank built for people looking to manage and control their money from anywhere. Because it’s fully app-based, there’s no waiting in lines or calling customer service when you lose your card, but there’s also no in-person help. The only issue for Canadians is that Monzo is a UK-based app, which means you can only sign up for it if you live in the UK with a UK residence.

How does Monzo work?

Monzo operates like a regular chequing account that’s controlled by the Monzo mobile app instead of a physical branch. It lets you easily set budgets and see where you’re spending money each month. You’ll also get instant notifications when you go over your spending limits and you won’t pay anything extra when you spend money abroad.

What special features does Monzo offer?

• Early pay. Enter your salary into Monzo and get a cash advance one day before your paycheque is due to arrive for no extra fee.
• Money sorting. Sort the money that you make into savings, bills and daily spending so that it’s easier to stick to your budget.
• Bill pots. Set money aside in a special “pot” that Monzo will draw from to pay your bills so that you can’t accidentally spend money reserved for rent or food.
• Direct debits. Set up direct debits with Monzo and receive notifications if your bills go up in any given month.
• Instant notifications. Get instant alerts when you spend money on your card and get warnings if you’re spending money too fast for the budget you’ve set.
• Fee-free payments abroad. Save money on currency exchange and fees when you spend money overseas.

Compare Monzo Canada alternatives

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Name	Product	Promo Rate	Regular Interest Rate	Monthly Account Fee	Transaction Fee	e-Transfer Fee	Offer
EQ Bank Savings Plus Account		N/A	2.50%	$0	$0	$0		Go to site View details	Compare	loading Fetching your data...
Simplii High Interest Savings Account		5.25% for 5 months	0.40%	$0	$0	$0		Go to site View details	Compare	loading Fetching your data...
Neo Money Account		N/A	2.25%	$0	$0	$0	Earn 2.25% interest on your balance + get up to 15% cashback on first-time purchases with your Neo Money card.	Go to site View details	Compare	loading Fetching your data...
KOHO Save		N/A	2.00%	$0	$0	$0	Use promo code FINDERCODE and get a $20 cash bonus when you make your first purchase within 30 days.	Go to site View details	Compare	loading Fetching your data...

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Using Monzo abroad

One of the crowning features of Monzo is that it doesn’t mark up the exchange rate or charge fees when you use your card abroad. This makes Monzo a suitable choice for customers who travel and spend money overseas regularly.

That said, you should make sure to keep an eye on your bank balance if you intend to withdraw cash from foreign ATMs. This is because you may be stuck paying a 3% fee on any amount you take out if your withdrawal exceeds $200.

Is Monzo safe?

If Monzo comes to Canada it will likely be regulated in the same way as any other bank. In the UK, it protects your money (up to £85,000) through the Financial Services Compensation Scheme. Monzo also claims to be four times better at stopping card fraud and three times better at stopping identity theft than other UK banks.

Monzo Pros and cons

Pros

• Easy application. Open an account in a matter of minutes using Monzo‘s online application.
• No monthly fees. Pay less out of pocket on monthly account fees.
• Decent interest rates. Lock your savings away for a 12-month period to earn an accelerated interest rate.
• Budgeting tools. Put money into “pots” to pay your bills and carve out some savings with a number of handy budgeting tools.
• No foreign exchange rates. Avoid paying fees and currency exchange rates when you spend money on your card overseas.

Cons

• Not available in Canada. You won’t be able to access Monzo‘s services until it comes to Canada.
• Fees at foreign ATMs. You’ll pay a 3% charge for overseas ATM withdrawals that exceed $200 a month.
• No in-person support. There’s no in-person service for accounts since everything runs through the online app.
• Tech-based. You’ll need to know how to navigate the mobile app to take full advantage of all of Monzo‘s features.

Bottom line

Monzo is a reputable UK-based digital bank that offers a number of enticing features. Unfortunately, as of May 2020 it doesn’t offer its services in Canada. That said, you can look into other digital banks in Canada to find a suitable alternative while you wait.

Monzo Canada FAQs

• Can I use Monzo in Canada?

  You won't be able to use Monzo in Canada. The company has also not made any public announcements about moving its services to Canada in the near future. As of right now, it's only licensed to operate in the UK, with similar licensing being worked out for the US. That said, it could be a while before it makes its way across the border.

• What other digital banks are similar to Monzo in Canada?

  There are a number of other digital banks that are similar to Monzo in Canada. These include Tangerine, EQ bank and Wealthsimple. You can check out the full list by comparing digital banks here.

• Can I download the Monzo app in Canada?

  You may be able to download the app if you have your Google Play or App Store settings set to the UK. Unfortunately, that's about as far as you'll be able to go with the process of getting an account unless you're also a UK resident. This is because you'll be required to show proof of ID and an address in the UK to open an account.