Monzo business account review

Challenger bank Monzo now offers business banking. Check out what accounts it provides and whether they could be the right business banking solution for you.

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After Revolut and Starling got into business banking in 2017 and 2018 respectively, it was just a matter of time before Monzo did the same.

In February 2019, Monzo ran an initial trial of its business accounts, and the bank has now fully launched them in the UK.

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 fee-paying 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
Monzo
Account feeFree
FSCS protected
UK ATM chargeNo UK ATM charge - daily limit of £400 and monthly limit of £5,500
Account software integration
Accounts software integration platformsXero, FreeAgent and QuickBooks
Additional cardsOnly 1 available with the free service
Requires credit checkSoft search with no impact on credit score
Credit check
Credit check detailsSoft search with no impact on credit score
Overdraft
Freeze card from app or online banking
Instant notifications
Interest rate0%
Current account switch guarantee

Doing business overseas with Monzo

Monzo
Monzo
Overseas transaction chargeMastercard's wholesale rate with no added fees
Overseas ATM chargeNo charge inside EEA up to £400 daily, outside EEA £200 free every 30 days and 3% charge after that
International transfer chargeYou 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 reviews

Online customer reviews are for Monzo Bank 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 9,000 customer reviews.

The Monzo banking app also has 4.4 out of 5 stars in the Google Play store, based on more than 20,000 user reviews. On the App Store, the app has 4.5 out of 5 stars, based on almost 13,000 reviews.

Customers in general had big praise for Monzo’s customer service and app features, though 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.
  • Accounting software integration only available with the “Pro” paid-for account.
  • No branch network if you prefer to speak to bank staff in person.

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 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, then a business account with a high street bank might be a better option for you.

Compare alternatives to Monzo’s business accounts

Data indicated here is updated regularly
Name Product Account fee Bank transfers Accounting integrations Non-Sterling transactions Overdraft Account management Key benefits
Starling Business Account
Free
Free
Xero, FreeAgent
Free

Min. 18 months trading to apply
App, Online
Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm)
Tide
Free
£0.20
Free if both accounts are with Tide
Xero, QuickBooks, FreeAgent, ReckonOne, Kashflow and Sage
Free
App
Free spending abroad and at home in any currency, instant payment alerts, automatic categorisation
Amaiz
£9.99 per month
Free in first month
Free Starter plan available
£0.20
FreeAgent, Xero, Sage, Reckon One, Kashflow, QuickBooks
1%
0.5% in Europe, 1% elsewhere
App, Online
ANNA
Free
Free up to a max. balance of £5,000 (or up to £500 paid in per month)
Free
2 free transfers per month and unlimited free transfers to Anna accounts
Coming soon
Free
App
Earn 1% cashback for paying with your ANNA card in selected categories. Enjoy premium benefits free for the first 6 months.
Cashplus business
£69
First year's annual fee refunded.
£0.99
Free transfers in first 3 months
FreeAgent, Xero
2.99%

On invitation
App, Online
First year's annual fee refunded.
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