Since its launch, Monzo has shaken up banking through its digital-first approach and innovative features. As one of the main challenger banks, it offers a range of different current accounts, integrated savings accounts, loans and investments – with its product suite continually being added to. Plus, its customers love it, 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).
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. What your free limit is will depend on which type of Monzo account you have.
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.
Beyond its free current account, Monzo has 3 account plans: Extra, Perks and Max. 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.
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.
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’s no charge for cash withdrawals in the UK or EEA if you meet Monzo’s criteria. If you don’t, then the first £400 in in a rolling 30 day period is free and the charge is 3% after that.
Foreign ATM withdrawals. The first £200 is free for withdrawals outside the EEA (3% after that).
Cash deposits. You can load cash into your account at all PayPoints. You’ll get 1 free deposit each month on the free plan, then after that it’s £1 a transaction.
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 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.
Live chat support
24/7 live chat support available in the app
Telephone support
In the UK dial: 0800 802 1281 and from abroad dial: +44 20 3872 062
Email support
Email: help@monzo.com
Touch login
Face ID
Voice ID
Closing your account
Email: help@monzo.com to close your account
Order replacement card
Order in the app, card should arrive within 5 working days
Freeze card from app or online banking
Report card lost or stolen
Yes, through the app
Cancel direct debits
Cancel direct debits in the app
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).
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.
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. 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. 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.
Yes to loans, no to mortgages. Read our guide to find out more about Monzo’s loans.
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.
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).
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.
Michelle Stevens is a deputy editor at Finder, specialising in banking, finance and mortgages. She has a journalism degree from the University of Sheffield and has been a journalist for more than 10 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.
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50 Responses
EmApril 13, 2019
Hi,
Looking at this- my partner currently has an ‘optimum’ prepaid card (we’re trying desperately to budget) that I load a certain amount of money on a week for him. Is there any way a Monzo card has this facility or some sort of ‘lock’ to not allow access to any money other than that given for the week?
Thanks for getting in touch with Finder. I hope all is well with you. 😃
Monzo offers the Pots feature. It allows you to set money aside within your main Monzo account. You have the option to set up multiple Pots for different purposes, and on the Account tab, you will see an overview of all your money.
The Pots feature allows you to stick to your savings goals since it locks your Pots until a date you choose and you won’t be able to take money out till then.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
I’m afraid that your Monzo account-holder friend needs to get in touch with Monzo regarding this matter. You may also seek assistance from your bank if they may assist you on reversing the transaction.
Yes, as you do not need to pass a credit scoring application to be accepted for Monzo current account.
To open a Monzo account, they only run a soft check which leaves a fingerprint but does not affect your credit score. They will run a hard check if you opt to take an overdraft.
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Hi,
Looking at this- my partner currently has an ‘optimum’ prepaid card (we’re trying desperately to budget) that I load a certain amount of money on a week for him. Is there any way a Monzo card has this facility or some sort of ‘lock’ to not allow access to any money other than that given for the week?
Hi Em,
Thanks for getting in touch with Finder. I hope all is well with you. 😃
Monzo offers the Pots feature. It allows you to set money aside within your main Monzo account. You have the option to set up multiple Pots for different purposes, and on the Account tab, you will see an overview of all your money.
The Pots feature allows you to stick to your savings goals since it locks your Pots until a date you choose and you won’t be able to take money out till then.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I transfer some money into a friend’s Monzo account 2 days ago and the account was frozen after. How can I get refund?
Hi Edria,
Thank you for getting in touch with Finder.
I’m afraid that your Monzo account-holder friend needs to get in touch with Monzo regarding this matter. You may also seek assistance from your bank if they may assist you on reversing the transaction.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
The Monzo bank account check the credit scores for Overdraft
Hi Malik,
Thanks for getting in touch! All banks don’t disclose which credit bureau they report to – sorry for the inconvenience. Hope this clarifies!
Best,
Nikki
Do you have to pay a monthly subscription to use your monzo bank account?
Hi Dee,
Thank you for getting in touch with Finder.
No subscription fee to use Monzo. All UK cash withdrawals and payments are free of charge.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
Does Monzo accept customers if they have bad credit history?
Hi Jordan,
Thanks for reaching out to Finder.
Yes, as you do not need to pass a credit scoring application to be accepted for Monzo current account.
To open a Monzo account, they only run a soft check which leaves a fingerprint but does not affect your credit score. They will run a hard check if you opt to take an overdraft.
I hope this helps.
Cheers,
Charisse