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Monzo business vs Starling business: Which is best for your business?
This guide takes a closer look at the main differences between the Monzo and Starling business bank accounts so you can decide which is most likely to suit you.
If you’re looking for a business bank account that can be managed in-app, both Monzo and Starling Bank are worth considering. Both accounts have a lot of similarities – they both offer fee-free spending abroad, FSCS protection and an easy account opening process. But there are also some key differences, as we explain below. We have a separate guide comparing the consumer accounts of Monzo against Starling.
Monzo vs Starling: Vital statistics
 |  | |
| Ratings | Not yet rated | Finder score ★★★★★ User survey ★★★★★ |
| Free spending abroad | ||
| Overdraft rate | Not available | Not currently available |
| Interest when you're in credit | 0% | 0% |
| Branch access | ||
| FSCS protected | ||
| Product image |  |  |
| More Info | Go to site More Info |
Neither Monzo nor Starling have branch networks, meaning both business accounts must be managed digitally. Both accounts come with a contactless Mastercard – Monzo’s card is grey, while Starling’s is black – and account holders can use their cards abroad with no foreign transaction fees. Neither account pays interest on credit balances, while the Starling account offers an overdraft, but Monzo’s does not.
Both accounts also protect eligible deposits up to £85,000 per customer under the Financial Services Compensation Scheme (FSCS). Monzo and Starling Bank are both fully licensed UK banks and are regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
Round 1: Account features
| | |
| Cash deposits | ||
| Cheque deposits by post | ||
| Cheque scanning in the app | ||
| Freeze/unfreeze card in the app | ||
| Extra cards for employees | ||
| Accountancy software integrations | ||
| Send money abroad | ||
| Marketplace | ||
| More Info | Go to site More Info |
Although Monzo has no branch network, it is possible to pay in cash deposits at a PayPoint. You’ll pay £1 per deposit, but note that you can only pay in £5 to £300 in one go, and up to a total of £1,000 every 6 months. You can also post cheques to the provider for free. However, you cannot send money abroad.
The Monzo Lite account does not offer additional cards for employees. However, if you upgrade to the Pro account for £5 a month, you can get multi-user access for up to 2 employees, and each will get their own debit card. You must be a limited company to qualify.
The Monzo Lite account also does not support accountancy software integrations, but if you upgrade to the Pro account you can integrate your account with Xero, QuickBooks or FreeAgent.
Over at Starling, you can deposit cash into your business account at any Post Office branch. You’ll pay £3 for deposits of up to £1,000 or 0.3% for deposits above £1,000. You can also deposit cheques by post free of charge, or deposit cheques of £1,000 or less via the app. You simply take a clear photo of the cheque and Starling takes care of the rest. International payments are also possible from this account.
Payment cards are only available to each person who has access to the Starling business account, which is currently limited to company directors or sole traders themselves. This means you cannot get additional cards for employees. However, account holders can connect to accountancy software packages QuickBooks, Xero and FreeAgent from the Starling “Marketplace”. The Marketplace also offers link-ups with other Starling partners which offer services such as insurance or pensions.
Winner: Starling wins hands down here. As well as allowing users to pay in cheques in-app, they can also make international payments and benefit from accountancy software integrations without the need to upgrade to a more expensive account.
Round 2: Account costs
| | |
| Monthly account charge | Free | Free |
| Fee for cash deposits | £1 at PayPoint | 0.7% or £3 minimum (at Post Offices) |
| Fee for cheque deposits | Free | Free |
| Fee for payments in or out | Free | Free |
| Fee for direct debits | Free | Free |
| Fee for sending money abroad | Can’t make international payments | Local network fee + 0.4% Starling fee |
| More Info | Go to site More Info |
There is no monthly fee for Monzo’s Lite account, and there are no fees for paying in cheques, making transfers or setting up direct debits. You will have to pay a £1 fee for cash deposits at PayPoint, however, and there’s no option for sending money abroad.
Similarly, with Starling, there is no monthly fee and there are no fees for paying in cheques, domestic transfers or setting up direct debits. Cash deposits at the Post Office cost £3 a time for deposits up to £1,000, or 0.3% for deposits over £1,000. International payments cost 0.4%, plus local fees for each currency supported.
Winner: It’s close, but Starling edges it simply because it allows international payments.
Round 3: Spending in the UK
| | |
| Free card transactions | ||
| Contactless card limit | £100 | £100 |
| Free ATM withdrawals | ||
| More Info | Go to site More Info |
Both Monzo and Starling offer free card transactions and fee-free ATM cash withdrawals in the UK.
Winner: A draw. Neither account will charge you for using your card in the UK.
Round 4: Using the card abroad
| | |
| Free foreign transactions | Yes | Unlimited |
| Free foreign ATM withdrawals | No charge inside EEA up to £400 daily. Outside EEA £200 free every 30 days and 3% charge after that | Unlimited |
| More Info | Go to site More Info |
You can use the Monzo card to spend at retailers and restaurants abroad with no foreign exchange fee. You’ll get the Mastercard exchange rate with no additional mark-up or fees. There’s also no charge for cash withdrawals in the EEA, providing you don’t go over the £400 daily limit. Cash withdrawals outside the EEA have a much stricter limit, you can only withdraw up to £200 for free every 30 days. Anything over this will be charged at 3%.
Meanwhile, Starling Bank does not charge you for spending on your card abroad, and again, you’ll get the Mastercard exchange rate with no extra fees. Withdrawing cash from a foreign ATM is also free of charge.
Winner: Starling. It’s pretty close, but Monzo imposes limits on cash withdrawals, while Starling doesn’t.
Round 5: Signing up
| | |
| Apply through the app | ||
| Quick application | ||
| Credit check | ||
| Card delivery fee | Free | Free |
| Card delivery timescale | 2-5 working days | 5-7 working days |
| Replacement card fee | £5 (unless you’ve been a victim of fraud) | 1 free, then £5 each |
| More Info | Go to site More Info |
To open a Monzo business account, you will need to download the app. If you’re new to Monzo, you’ll also need to open a personal account first and provide proof of ID. You’ll then need to answer a few questions to see if your business is eligible. You can apply if you are a sole trader or the director of a registered limited company by shares and you’re based in the UK. You will need to provide details about your business, including what industry you’re in and your business address, plus the size of your business and how you expect to make and receive payments. Monzo doesn’t conduct a hard credit check and it’s free to receive your accompanying bank card. Replacements cost £5, unless you’ve been a victim of fraud.
Setting up the Starling business account must also be done via the app. You will need to provide at least one of the following documents to verify your identity: a passport, EU/EEA ID card, UK residence card or a UK photo driving licence. You will also be asked to confirm the nature of your business and may be asked to provide invoices, bank statements, account letters, signed contracts, qualifications or payslips. Starling doesn’t conduct a hard credit check and your accompanying bank card will be sent to you free of charge. Replacements cost £5.
Winner: Again, it’s close but Starling just clinches it due to not needing to open a personal account first.
Round 6: Customer support and account switching
| | |
| Customer service via the app | ||
| Customer service via a telephone line | ||
| CASS switch guarantee | ||
| More Info | Go to site More Info |
Winner: A draw. Both Monzo and Starling offer similar customer support and both are signed up to the CASS scheme.
Overall winner: Is Monzo better than Starling?
Both Monzo and Starling Bank have a lot to offer businesses and both providers’ accounts have many similarities. However, when it comes to picking a winner, Starling Bank takes the top spot due to winning a higher number of rounds than Monzo. As well as offering international payments, it integrates with accountancy software and offers an overdraft. There are also no limits on withdrawing cash abroad fee-free.
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