As one of the main challenger banks, Monzo offers current accounts, integrated savings accounts, loans and investments in a slick app. And it updates its range and features pretty often. In April 2024, it launched 3 perk-laden, paid-for current accounts. Customers love Monzo, with 98% saying they’d recommend the bank to a friend in our 2024 banking customer satisfaction survey.
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).
Buy now, pay later. Monzo offers a 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.
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.
Monzo Extra
Beyond its free current account, Monzo has 3 paid-for account plans: Extra, Perks and Max. Monzo launched all 3 in April 2024 and each offers something slightly different. First up is Extra.
Basically, a Monzo account with a little bit more, Extra offers more advanced money management tools.
For a monthly fee of £3, you get:
Connected banks and credit cards. Add other bank accounts and cards to your Monzo app so you can see all your balances and transactions in one place.
Virtual cards. Link a virtual card to one of your Pots to help with budgeting.
Advanced roundups You can boost your spare change roundups and automatically put 2x, 5x or 10x into your savings every time you spend.
Custom categories Create your own categories to track how much you spend.
Credit insights Monzo now tracks your Equifax and TransUnion credit scores weekly and offers tips on how to improve your score by making certain changes.
Monzo Perks
Monzo Perks builds on Extra and offers more rewards, discounted fees and interest all for a monthly fee of £7.
Saving interest. Get 4.60% AER interest on your Instant Access Savings Pots and Cash ISA.
Fee-fee withdrawals and cash deposits. Benefit from a higher fee-free withdrawal limit and 3 fee-free cash deposits.
Discounted investment fees. You’ll pay less in Monzo Investment fees as a Perks account holder.
Annual railcard. As part of your account you’ll get an annual railcard from Trainline. You can pick which one suits you best depending on your age, where you live and how you like to travel.
Weekly Greggs treat. Monzo knows its customer base, as it’s introduced a free weekly hot drink or snack at Greggs.
Monzo Max
Monzo’s top-tier account, Max, has everything that Extra and Perks offers plus benefits such as insurance and breakdown cover. Of course, there’s a higher monthly fee as a result and you’ll need to hold the account for a minimum of 3 months.
For £17 a month, you’ll get:
Worldwide travel insurance. Multi-trip cover including medical bills, lost valuables, winter sports and car hire excess. You can also choose to add family cover for £5 extra a month.
Worldwide phone insurance. Protect your phone from loss, theft and accidental damage.
UK and European breakdown cover. Benefit from personal cover including home insurance, onward travel and vehicle recovery.
Expert analysis: A premium account from Monzo: Is it worth it?
Paying for your current account is always something that needs to be considered carefully.
If you’re looking at the Monzo Extra account, £3 a month might not sound much, but remember that it’s still £36 a year. And in return, all you’ll get is slightly more advanced money management tools. A lot of this is already included with the free account, including spending notifications, budgeting tools and savings pots, so it’s unlikely to be worth upgrading.
Monzo Perks, meanwhile, costs £7 a month or £84 a year. Whether this fee is worth paying will depend on how often you buy a snack or coffee at Greggs and how often you travel on the train. If you do both frequently, it could work to your advantage. After all, a weekly regular cappuccino at Greggs will set you back more than £9 a month, already more than covering the account fee.
However, be aware that if you’re a frequent commuter, a monthly or annual season ticket could work out cheaper than using a Railcard. And if you’re only using Monzo Perks for the Railcard, you’ll save money by buying it separately - it costs £30 a year.
Monzo Perks is definitely not worth it if you are only paying the extra to get access to a better savings rate or fee-free cash withdrawals. Although the 4.60% AER rate on the account’s savings pots is competitive, there are better deals on the market. And there are plenty of bank accounts that offer unlimited fee-free cash withdrawals both in the UK and overseas (such as Starling).
Monzo Max is the most expensive of the lot at £17 a month, or £204 a year. Admittedly, you’ll get worldwide travel insurance, worldwide phone insurance and UK and Europe breakdown cover for that. But my biggest bugbear is that if you want travel insurance for the whole family, you’ve got to pay another £5 a month - or a whopping £264 a year. By contrast, the Nationwide Flex Plus account gives you all of this for a lower fee of £13 a month, or £156 a year.
You will still get the free Greggs weekly treat and the Railcard with Monzo Max, but again, these may be of limited value.
If you are tempted to apply for Max, it’s worth working out how much it would cost you to buy each of the perks separately first - or think about applying for the Nationwide account instead. Also check insurance terms and conditions carefully as there will likely be exclusions - you’ll only be covered up to the age of 69, for example. Keep in mind too, that you might already have cover elsewhere - perhaps your mobile phone is covered through your home insurance, for instance.
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.
What does the Monzo app look like?
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
Email support
Telephone support
In-app or live chat
Contact form
Branch support
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
In our independent 2024 customer satisfaction survey, a tremendous 98% of Monzo’s users said they’d recommend the brand to a friend. Users highlighted the bank’s easy to use app and convenient savings pot tool. Here’s what some of those Monzo customers had to say:
“I love monzo, they are quick, efficient, everything is easy to understand. They set up pots very quickly, can’t fault them!”
“The communication is great and they provide a good service.”
“So easy to open a current account. Download the app, answer a few simple questions. Voila!”
On the Apple App Store, Monzo scored 4.9 out of 5 stars from over 188,500 reviews. On the Google Play Store, it scores 4.5 out of 5 stars, from a total of 124,000 reviews (last updated, February 2023).
However a number of users have complained about the app layout and design and talked about struggling to find key features on the account. There have also be complaints on trying to reach the customer service support team.
Pros and cons of Monzo
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.
Deposit cash into the account at any store which shows the PayPoint logo.
Buy now, pay later option for account holders (Monzo Flex).
Open a savings account directly from the app with one of the providers Monzo works with.
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 – some other digital bank accounts (e.g. Starling Bank) have no such charges.
You need to upgrade your account for full functionality.
Users have reported long waiting times to speak with the customer service team.
Cash deposits can incur a fee depending on your Monzo plan.
Our verdict: Is Monzo a good bank?
Monzo is the most popular digital challenger bank in the UK (by customer numbers), and for a good reason. Its free account is super easy to use, set up and manage, and the app is colourful and fun.
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’re a bit of a globetrotter and often travel to countries where cash is still king, you might want to consider the alternatives. Or have a look at some of Monzo’s other account plans which offer higher limits for fee-free withdrawals and cash deposits.
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.
Frequently asked questions
Yes, it has been authorised fully by the Prudential Regulation Authority (PRA) and is regulated by the Financial Conduct Authority (FCA).
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.
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.
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.
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!
Yes. Monzo debit cards can generally be used at pay-at-pump fuel machines across the UK.
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.
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.
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.
Unfortunately not. Monzo account holders get sent a Mastercard debit card, but there is no option to apply for a credit card yet.
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.
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.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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To make sure you get accurate and helpful information, this guide has been reviewed by Rachel Wait, a member of Finder's Editorial Review Board.
Michelle Stevens is a deputy editor at Finder, specialising in banking, finance, credit and mortgages. She has a journalism degree from the University of Sheffield and has been a journalist for 15 years, writing on topics including fintech, payment systems and retail. In her spare time, Michelle likes to travel, explore new foodie experiences and attempt to improve her own culinary skills. See full bio
Michelle's expertise
Michelle has written 118 Finder guides across topics including:
Nick Renaud-Komiya has been a writer and reporter for nine years, covering a range of consumer issues from energy suppliers to banking and mortgage issues. He enjoys helping people take control of their personal finances and better understand their consumer rights. Nick’s consumer writing and money journalism has been featured in a range of outlets including MoneySavingExpert.com, The Sunday Mirror, The Independent and Money.co.uk. Outside of work Nick enjoys cooking and collecting old David Bowie merch. See full bio
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