Monzo app and card review: Is it worth it?

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Our verdict

Our verdict

Monzo is the most popular digital challenger bank in the UK (by customer numbers), and for a good reason. It's free account is super easy to use, set up and manage, and the app is colourful and fun (as long as you can live with the loud, judgemental sound it makes every time you spend money!).

The only real drawback is the limit on free ATM withdrawals abroad, which is quite low compared to that of Starling, for example. For most people this won't really be an issue, but if you are a bit of a globetrotter and often travel to countries where cash is still king, you might want to consider the alternatives.

All in all, Monzo is great if you're looking for a mobile-first current account with almost no fees, a slick user experience and a young and fresh vibe. Whether you're planning on using it as a primary current account for your day-to-day finances or as a secondary account when you travel, it does the job quickly, efficiently and with a degree of cheerfulness.

Pros

• Full UK current account – you can do all the stuff you can do with a normal bank and more.
• Apply quickly from the app without proof of address – you won’t be credit-checked unless you apply for an overdraft.
• Slick, fun app that is packed with cool features.
• Spend abroad with no fees at the Mastercard exchange rate.
• Open a savings account directly from the app with one of the providers Monzo works with.
• Deposit cash into the account at any store which shows the PayPoint logo.
• Fully FCA-licensed and FSCS-protected.

Cons

• No bank branches isn’t great for those who prefer face-to-face customer service.
• 3% charge for overseas ATM withdrawals over £200 – other digital bank accounts (e.g. Starling Bank) have no such charges.

★★★★★

User survey

★★★★★

Finder score

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How we rated Monzo

Monzo is a challenger bank that operates without branches, offers a full current account, integrated savings accounts (accounts with other banks but managed from your Monzo app), and personal loans. Monzo customers love the service – it received 5 out of 5 stars in our latest banking customer satisfaction survey. And of course it comes with the signature hot coral Mastercard that’s been blinding you at bars and supermarkets. It offers three types of account; the standard Monzo account, Monzo Plus and Monzo Premium.

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Name	Product	Ratings	Account fees	Funding requirement	Interest (AER)	Arranged overdraft	Incentive	Representative example	Link
Monzo Account Monzo Account Finder Award		Finder score ★★★★★ ★★★★★ User survey ★★★★★ ★★★★★	£0	No minimum funding requirement	0% AER	39% APR representative (variable)	Monzo Instant Access Savings Pot earns you 4.10% AER interest (variable), paid monthly into the Pot you create.		Go to site View details		loading Fetching your data...
Monzo Plus Account Monzo Plus Account Finder Award		Finder score ★★★★★ ★★★★★ User survey ★★★★★ ★★★★★	£5 per month	No minimum funding requirement	0% AER	39% APR representative (variable)	Monzo Instant Access Savings Pot earns you 4.60% AER interest (variable), paid monthly into the Pot you create.	Account fee of £5 per month, for a minimum 3 months. Account available for 18+, T&Cs apply.	Go to site View details		loading Fetching your data...
Monzo Premium Account Monzo Premium Account Finder Award		Finder score ★★★★★ ★★★★★ User survey ★★★★★ ★★★★★	£15 per month	No minimum funding requirement	0% AER	39% APR representative (variable)	Monzo Instant Access Savings Pot earns you 4.60% AER interest (variable), paid monthly into the Pot you create.	Account fee of £15 per month, for a minimum 6 months. Account available for 18-69 only, T&Cs apply.	Go to site View details		loading Fetching your data...

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How does Monzo work?

Monzo works in a similar way to any normal current account. When you apply for an account, you’ll be issued with a bright coral contactless Mastercard.

However, the account is entirely managed through the Monzo app, which is jam-packed with cool features and much slicker than your average banking app. The card is even controlled via the app: you can freeze it if it gets lost or stolen (and unfreeze it if you find it again).

Here are some of Monzo’s main features:

• Earn cashback. Monzo allows you to earn cashback at popular retailers, restaurants and on travelling. You pick your offers, shop in person or online and see what you’ve earned instantly via the app.
• Get paid a day early. Does what it says on the tin!
• Salary sorter. Divvy up your salary into spending, savings and bills.
• Spending budgets. Set budgets by category (e.g. eating out, entertainment, transport).
• Savings pots. Split money into interest-earning “savings pots”. You can also “round up spare change” into a pot.
• Bills pots. Get direct debits or standing orders paid out of a “bills pot”.
• Instant spending notifications. See what you’re spending in real time.
• Free cash withdrawals abroad. Currently up to £250 a month in EEA and up to £200 a month outside the EEA (after that it’s a 3% charge).
• No transaction fees abroad. Contactless payments and spending overseas is free.
• Energy switching. If you switch energy provider using the app then you can get cashback.
• Joint accounts. Open a joint account with another Monzo customer.
• Overdrafts. Apply in the app for an overdraft of up to £2,000.
• Apple and Google Pay. Monzo cards work with Apple Pay and Google Pay.
• Loans. Apply for a Monzo loan of up to £25,000.

How do I apply for a Monzo account?

UK residents aged 16 or over can apply for a Monzo bank account through the app, available to download at both the Apple App Store and Google Play Store. You’ll need to provide your personal details and verify your identity by taking a video of yourself and a picture of your ID, but no proof of address will be required.

You can now also open a joint account with Monzo, as long as you both have a regular Monzo account already. You will both receive a new separate joint account card.

If you are 16 or 17 and want to open a Monzo account, you can access all of the same benefits that full UK current account users receive. The only difference is that certain actions are blocked, such as spending on activities that are illegal to under 18 year olds, e.g. gambling.

Signing up for an account does not involve a full credit check and therefore won’t affect your credit score.

Monzo’s account opening referral scheme

Monzo’s refer a friend cash bonus is back for 2023. As the name suggests, the “Give £5, Get £5” scheme means that if you open a new Monzo account via an invite that an existing Monzo customer has sent you, then you’ll both be given £5 by the bank. Newbies will also need to make a card payment in the first 30 days of opening their account for both parties to qualify for the pay-out. For existing account holders, there is no limit to how many people you can invite to sign up to Monzo.

Monzo last ran a similar cash referral scheme back in 2019, so if you were already intending to opening a Monzo account then now could be a good time to sign up to earn yourself, and your friend, some free cash.

Is Monzo good to use abroad?

You can use a Monzo card abroad really easily. You don’t have to do anything! Just travel anywhere in the world and there are no charges for card transactions at all and no charges for ATM withdrawals up to £200 a month – then there’s a 3% fee. The monthly limit for cash withdrawals in European countries is slightly higher at £250, but be aware that is a combined threshold for ATM withdrawals made in the EEA and the UK (then the 3% fee applies).

If spending cash abroad is what is most important to you, we recommend considering Starling Bank. Starling’s account offering is very similar to Monzo’s, and there’s no charge on overseas card transactions, but there are also no charges at all for withdrawing cash abroad, and the maximum amount you can withdraw at an ATM each day is £300.

Also be aware that individual foreign ATMs may charge a fee too – that’s to do with the ATM network itself and nothing to do with Monzo though. All transactions on your Monzo card in a foreign currency are made at the current day’s Mastercard exchange rate, offering a competitive rate that responds to the live market.

Then, when you get back from your trip, Monzo will send you a little summary of how much you spent. Learn more about using Monzo abroad.

Saving with Monzo

Monzo doesn’t offer savings accounts itself, but it’s got a shiny new savings marketplace, which means that you can open a savings account with another provider directly from the Monzo app (Monzo refers to those as “savings pots”). We’ve got a full review of Monzo’s savings feature if you want to read more.

Also, if you don’t want to open a separate savings account you can just set money aside in a regular Monzo “pot” – but this won’t pay interest.

Monzo’s pots are a great way to use a budgeting technique known as “piggy banking”. Our guide to piggy banking. gives you the lowdown on how to budget better using this popular technique.

As we mentioned above, you can also simply apply the “round up spare change” feature and add it to your pot (e.g. a £2.57 spend at Sainsbury’s is rounded up to £3, which equals 43p set aside into your pot.) If you like the sound of this, maybe you should also check out Moneybox. It’s the same principle, but your spare change is then invested to potentially boost your savings.

What does the Monzo app look like?

Monzo Investments

Monzo Investments has 3 ready-made fund options all managed by BlackRock. Each fund has a different risk level: Careful, Balanced and Adventurous. So you can choose which one suits you best.

You can start investing from just £1. Once you’ve signed up for the new feature, you can pick which ready-made fund you’re happy to have.

• Careful. This is designed for those who don’t want too much risk and are happy with potentially smaller returns. Around 80% of the money in this fund is in bonds and about 20% in shares.
• Balanced. Suited to someone who is aiming for a higher return with a medium level of risk. About 34% of the money in this one ends up in bonds and around 66% in shares.
• Adventurous. Those who have more of a risk appetite can go for this one. Returns could be higher, but you could experience more losses than the other funds. 100% of the money in this fund is invested in shares.

You’ll be charged a percentage of your investment value in fees. This will include a fund fee and a platform fee. However, if you’re a Plus or Premium customer, you’ll pay a lower platform fee.

Monzo personal loans

You can now apply for a personal loan from the Monzo app. You’ll be able to borrow between £200 and £25,000, but approval will depend on your credit history and score.

Unlike with many high street lenders, Monzo offers you a personalised quote before you actually apply. This way, you’ll know exactly how much the loan will cost you from the start. Monzo does check your credit score but won’t proceed with a “hard” credit check unless you decide to actually take out the loan. If you don’t, nothing will show on your credit record.

We also have a dedicated review of Monzo’s personal loans if you want to learn more.

Monzo Flex

This is Monzo’s buy now, pay later (BNPL) option. If you’re a Monzo account holder, the Flex feature is designed to let you pay for purchases over £30 in a series of instalments.

Monzo Flex involves an up-front application in the Monzo mobile banking app, where you’ll get an instant decision. If you’re approved, you’ll get your own individual credit limit. You can then choose to pay for a purchase in 3 interest-free instalments, or in 6 to 12 instalments at an interest rate of 29% APR (variable). Your first instalment is taken straight away, and instalments are then taken monthly until you’ve paid off the total amount due.

You can edit your instalment plan at any time, by paying off the plan early for no fee, or by organising to pay for a purchase over a longer time period. It’s also possible to “turn back the clock” and choose to use Flex on an existing transaction made with your Monzo card from the last 2 weeks. Your Flex balance sits alongside your Monzo account balance in the app, so you can see all your spending in one place.

Monzo fees and limits

• Card payments. Free in the UK and abroad.
• UK ATM withdrawals. There is a 3% charge on withdrawals of more than £250 in a 30-day period across the UK and EEA. The maximum cash withdrawal limits are £400 a day and £5,500 a month.
• Foreign ATM withdrawals. ATM withdrawals in Europe will fall within your combined £250 UK and EEA monthly limit, with a 3% charge on amounts taken out above that. Elsewhere in the world, cash withdrawals are free up to £200 a month, with a 3% fee after that.
• Cash deposits. You can load cash into your account at all PayPoints. It will cost £1 a transaction. You can deposit up to £300 a day and up to £1,000 every 6 months.
• Card replacements. You won’t be charged for the first 2 card replacements in the UK each year. You’ll need to pay £5 for each replacement after that – unless you’re a victim of fraud, card theft or your card has reached its expiry date.

Monzo Plus

Monzo has also launched an upgraded current account called Monzo Plus, which comes at a cost of £5 per month.

Monzo Plus comes with all the features of the regular Monzo account, but with some noticeable differences that the brand hopes will entice fee-paying customers. Two of the more striking features include the Open Banking-powered ability to see all of your bank accounts in one place, and the introduction of “virtual cards”, which are designed to help you shop more safely online.

Speaking of cards, the physical one accompanying this account is “holographic” and comes in blue, rather than Monzo’s customary hot coral shade. You can use this card to withdraw more money for free at overseas ATMs – up to £400 a month, compared to the current £200 limit on standard Monzo.

The Plus account also comes with a more advanced version of the “round up” feature – which many Monzo account holders already use to siphon off spare change into regular or savings “pots”. You can create custom spending categories and drill down more into those categories, even splitting out one bill across different categories.

You can also check your TransUnion credit score every month through the Plus account, and earn interest of 1.00% AER/Gross (variable) on balances of up to £2,000.

These new account features will certainly appeal to banking customers who are after more enhanced money management options, but you’ll need to weigh up whether at £5 a month (or £60 a year) these options are a definite must have. Learn more about Monzo Plus here. Monzo also has a premium account which we have reviewed here.

The differences between Monzo and Monzo Plus

Account name	Monzo	Monzo Plus
Card colour	Hot coral	You can choose from ‘midnight sky’ or ‘blue lagoon’ as well as the distinctive ‘hot coral’ design
Fees	No monthly fee	£5 a month
UK ATMs	UK cash withdrawals are free of charge up to £250 every 30 days, then there’s a 3% fee	All UK cash withdrawals are free of charge and the daily ATM withdrawal limit is £400 in the UK
Foreign ATMs	Free cash withdrawals in the EEA up to £250 a month (this is a combined EEA and UK limit); elsewhere abroad £200 fee-free cash withdrawals every 30 days (then a 3% charge)	Free cash withdrawals in the EEA; £400 fee-free cash withdrawals elsewhere abroad every 30 days (then a 3% charge)
Savings interest rate	No interest paid on account balance	Earn 1.00% AER/Gross (variable) interest on your account balance and money in regular pots (not including savings pots) up to £2,000 – you will be paid the interest at the end of each month
Virtual cards	No	Yes
Free cash deposits at PayPoints across the UK	No – £1 charge for every cash deposit	Free once a month, then £1 for each deposit
Other accounts in Monzo	No	Add other bank accounts and credit cards to Monzo to see your balances and transactions, and move money around with easy bank transfers
Spending categories	Yes – 12 set categories for your spending	Yes – and you can create custom categories for all your spending
FSCS protection	Your eligible deposits in Monzo are protected by the Financial Services Compensation Scheme (FSCS) up to a value of £85,000 per person	Your eligible deposits in Monzo are protected by the Financial Services Compensation Scheme (FSCS) up to a value of £85,000 per person
Credit score	No	In-built credit tracker to see your TransUnion credit score and track how it changes each month; also has helpful info about what a credit score is and how to improve yours
Rewards program	No	Offers such as 15% off Patch plant and plant pot orders over £50, 25% off a Fiit home workout membership and 20% off an annual subscription to Babylon Health

Monzo overdraft fees

Monzo offers an optional overdraft to its customers that you can activate in the app. Enter your address, previous addresses and salary, and Monzo will run a soft credit check on you (this won’t affect your credit score).

If you’re accepted, Monzo will instantly set up an overdraft for you. The limit will depend on your salary and credit history and can be up to £2,000. You’ll then be presented with an agreement – and unlike the initial soft credit check, accepting the terms will leave a record on your credit history.

Monzo charges overdraft interest rates of 19%, 29% or 39% EAR (variable) depending on your credit score.

The vast majority of payments which exceed an arranged overdraft limit will simply be rejected. Some payments, like those to TfL, can’t be rejected because they are “offline” – in which case, you’ll go into an unarranged overdraft, which Monzo will price just like the arranged one.

Is Monzo a bank?

Yes! Monzo is a bank. “Monzo Bank Ltd” is authorised in the UK by the Prudential Regulation Authority (PRA) and is regulated by the Financial Conduct Authority (FCA).

Is Monzo safe?

It’s as safe as any other bank. The money in your Monzo account is protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. The FSCS is an independent statutory fund set up to safeguard consumer finances in the event of a bank being unable to meet its payment demands. Monzo has full FSCS protection, covering up to £85,000 of your money – as is the standard for UK bank accounts.

Customer service information for Monzo

Case study: Richard found separating his money into pots useful

Richard Loftin

Buckinghamshire

I chose to move to Monzo as I like the ability to use the pots feature. It helps to separate my bills, everyday spending money, rent and savings separately and clearly. I also like the idea of the bank being online and not having to visit a branch to resolve queries.

If there's one thing you'd tell a friend who's thinking of getting this, what would it be? I would highly recommend Monzo to a friend. I'd let them know how useful I've found the pots feature.

Monzo customer reviews

Monzo was ranked fifth out of 18 current account providers in our independent 2023 Customer Satisfaction survey. Its users gave the brand 5 out of 5 stars and a whopping 86% said they’d recommend the current account service. Users highlighted the bank’s very user-friendly app, and its wide variety of features. Here’s what some of those Monzo customers had to say in our survey:

“The app works well and they sort problems out fast.”

“Really simple and transparent banking.”

“Safe and secure. Easy to use. Good for all users.”

On the Apple App Store, Monzo scored 4.9 out of 5 stars from over 165,000 reviews. On the Google Play Store, it scores 4.1 out of 5 stars, from a total of 115,000 reviews (last updated, September 2023).

Pros and cons of Monzo

Frequently asked questions

• Is Monzo a fully authorised bank?

  Yes, it has been authorised fully by the Prudential Regulation Authority (PRA) and is regulated by the Financial Conduct Authority (FCA).

• Do I have to have an account with a traditional bank to set up my Monzo account?

  No. You don’t have to link another bank account with your Monzo card because when you open an account with Monzo, you will have a full UK current account which will allow you to do all the usual banking stuff.

• How do I put money or deposit cash into my Monzo account?

  Here are the ways you can put money into your Monzo account:

  1. Transfer funds from another bank account to your Monzo account.
  2. Get your salary paid straight into your Monzo account.
  3. Deposit cash into your Monzo account at a PayPoint.

• Does Monzo offer loans or mortgages?

  Yes to loans, no to mortgages. Read our guide to find out more about Monzo’s loans.

• Can I add my own custom categories?

  Unfortunately not with the free standard Monzo account. However, you can tag your transactions. This means you can still organise your spending, without adding too much complexity. If you do want the ability to create custom categories, you might want to consider upgrading to Monzo Plus.

• Is the Monzo card contactless?

  Yes. All Monzo account debit cards are contactless. You can use your Monzo card on your phone too, with Apple Pay and Google Pay. Welcome to the future!

• Can I use my Monzo card at a fuel pump machine, if there's no kiosk to pay at?

  Yes. Monzo debit cards can generally be used at pay-at-pump fuel machines across the UK.

• Can you get your UK benefits, such as tax credits and child benefit, paid into your Monzo account?

  Yes, you can get your tax credits and child benefit paid into your Monzo account. You just need to give them your Monzo sort code and account number.

• Can you get interest with a Monzo account?

  You don’t get interest on in-credit balances with the free Monzo account. But you can open a “savings pot” from the Monzo app, which is basically a savings account with a provider that Monzo has a partnership with, and these all pay interest. The rate depends on the type of account and the provider you opt for. Our dedicated guide explains everything about saving with Monzo.

• Is Monzo a credit card?

  Monzo is a digital challenger bank in the UK. It offers current accounts and business accounts that can be set up and managed on your mobile phone. The accounts do come with a contactless payment card, but this is a debit card not a credit card.

• Can I get a credit card with Monzo?

  Unfortunately not. Monzo account holders get sent a Mastercard debit card, but there is no option to apply for a credit card yet.

• Can you have a joint Monzo account?

  Yes, you can. Monzo offers four types of bank account: current accounts, business accounts, joint accounts and accounts for 16-17 year olds. Before you think about setting up a joint account it’s worth remembering that doing so means you’ll be linked financially to the other person. This means that you can be jointly credit scored, and their credit history can have an impact on yours. You’ll also be joint 50/50 owners of whatever funds are in the account, so make sure you really trust anyone you’re planning to open a joint account with. Learn more about joint bank accounts.

• How do I set up a joint Monzo account?

  Before you set your sights on a Monzo joint account, both of you will already need to have a regular Monzo current account. After that, the bank says that opening a joint account will only take a few minutes, as there are no new ID checks or long application forms. To get started on this process, head over to “settings” on your account tab. It’s also possible to move an existing joint account held at another UK bank over to Monzo using the Current Account Switch Service (CASS).