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Monzo business account review
Check out what accounts challenger bank Monzo provides and whether they could be the right business banking solution for you.
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You’ve probably heard of Monzo, as the challenger bank has been making waves in the personal current account market for years. In 2020 it brought its high level of service and innovative features to business banking, through its Monzo Lite and Monzo Pro accounts. It has also been selected as one of our recommended business accounts.
Compare Monzo’s business accounts
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What business accounts does Monzo offer and how much do they cost?
Monzo has the option of two business accounts to choose from:
- Lite. A free basic business account
- Pro. A more advanced business account that costs £5 per month
Other costs that apply to both accounts include a £1 charge to deposit cash via one of the UK’s PayPoints (you can post cheques to Monzo to deposit for free). It’s free to withdraw money at UK ATMs or spend on your Monzo card either in the UK or abroad. For overseas ATM withdrawals you get to take out £200 for free every 30 days, then there’s a charge of 3%.
Monzo doesn’t have a branch network, so its business accounts are designed to be managed by customers digitally. This is done mainly through the bank’s mobile app, although unlike with its better-known current account, Monzo does offer web access for its business accounts, so they can be managed on your home office computer and not just your smartphone.
What features do I get with a Monzo business account?
These are the features on offer with both the Lite and Pro versions of Monzo business banking:
- Business debit card
- 24/7 customer support
- Free instant UK bank transfers
- Pots to separate money
- Instant notifications
- Budgeting and categorised spending
- Digital receipts
- Apple Pay and Google Pay
- Card freezing option
- Biometric login
What extra features do I get with the Monzo Pro business account?
As you would expect, the paid-for Pro account comes with some extra features, especially designed for business banking users:
- Integrated accounting with Xero, QuickBooks and FreeAgent
- Tax Pots to set aside money for your tax bill
- Account access and payment cards for up to two other people (limited companies only)
- Invoicing capabilities, where you can create, send and track invoices in the app
- Exclusive offers, such as a free trial with Xero
How do I apply for a Monzo business account?
You can apply for a Monzo business account through your smartphone, by downloading the bank’s app.
You must be a sole trader or a registered limited company by shares (a “Ltd” company) based in the UK. If you’re a Ltd company, you’ll also need to be a tax resident in the UK only.
Monzo business’s fees and features
 | |
| Product Name | Monzo |
| FSCS protected | |
| Account fee | Free |
| UK ATM charge | No UK ATM charge - daily limit of £400 and monthly limit of £5,500 |
| Account software integration | |
| Accounting integrations | FreeAgent, QuickBooks, Xero |
| Additional cards | Only 1 available with the free service |
| Requires credit check | Soft search with no impact on credit score |
| Credit check | |
| Credit check details | Soft search with no impact on credit score |
| Overdraft | |
| Freeze card from app or online banking | |
| Instant notifications | |
| Interest rate | 0% |
| Current account switch guarantee |
Doing business overseas with Monzo
| |
| Product Name | Monzo |
| Overseas transaction charge | Mastercard's wholesale rate with no added fees |
| Overseas ATM charge | No charge inside EEA up to £400 daily, outside EEA £200 free every 30 days and 3% charge after that. |
| International transfer charge | You will need to pay a TransferWise fee |
Is Monzo safe?
Yes. Monzo is a fully licensed bank in the UK, so it’s covered by the Financial Services Compensation Scheme, or the FSCS for short. What this means is that all of your eligible money, up to a total of £85,000, is protected by the government should the bank fail.
Monzo business banking customer reviews
Online customer reviews are for Monzo as a whole, not its business accounts specifically.
But to give you an indication of how Monzo’s overall banking services have been judged by its users, on Trustpilot, Monzo has 4.5 out of 5 stars and a rating of “Excellent”, based on more than 14,000 customer reviews.
The Monzo banking app also has 4.7 out of 5 stars in the Google Play store, based on more than 46,000 user reviews. On the App Store, the app has 4.9 out of 5 stars, based on 38,000 reviews (March 2021).
Customers in general had big praise for Monzo’s customer service and app features, although one or two were unhappy with not being able to raise any issues in person with the digital bank.
Pros and cons of a Monzo business account
Pros
- Can manage the account online or through the mobile app.
- 24/7 customer support.
- Pots to separate money.
- Budgeting tools and categorised spending.
- FSCS protected, up to £85,000.
- The basic “Lite” account has no monthly fees.
- Option to upgrade to the “Pro” account for more advanced features.
Cons
- Charge to deposit cash and can only pay in a maximum of £1,000 every six months.
- Accounting software integration only available with the “Pro” paid-for account.
- No branch network if you prefer to speak to bank staff in person.
Monzo is well known for its current account, and its two business accounts do not disappoint. It also offers an overdraft which isn’t common for business accounts – but only to sole traders, not limited companies. If you’re trying to decide which account to go for, if you know you’ll use the extra benefits that come with the paid-for account, such as QuickBooks or FreeAgent, and would likely pay for these separately, it’s worth getting for the £5 per month fee. If you won’t use them, or can find alternatives for less elsewhere, the free account is a better option.”
Customer service information for Monzo
| Email support | |
|---|---|
| Telephone support | |
| In-app or live chat | |
| Contact form | |
| Branch support |
Our verdict
As one of the UK’s original challenger banks, Monzo is rated highly by its customers for ease of use and the ability to manage accounts through its innovative mobile banking app. One of the nice touches with a Monzo business account is you can also access it through a web browser – handy if you’re working on an office computer.
Both Monzo business accounts (including the free “Lite” version) come with decent features, although as expected, for the more advanced stuff such as Tax Pots and software integration, you’ll have to sign up to the paid-for “Pro” account.
Monzo does offer 24/7 support through its digital channels and telephone lines, but if you’d prefer to be able to visit a branch in person (or you need to make cash deposits of more than £1,000 every six months), then a business account with a high street bank might be a better option for you.
Get started by visiting Monzo’s website and sign up for an account. If you have read this review and decided that Monzo’s account is not for you, you can also compare other business bank accounts on the market.
Frequently asked questions
Banking scores
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
To find out more, read our full methodology.
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