Monzo is a UK-based online banking service with a high-quality accompanying mobile banking app. This Monzo review looks at how UK customers could benefit from creating a Monzo account, and what features you can expect from this digital bank.
In this Monzo review…
- Monzo overview
- Features
- Pricing
- Fees and Foreign Money
- Cash ISAs
- Security
- Monzo Mobile App
- Customer Support
- Monzo Review Summary
Monzo Overview
If you want a simple online banking service then Monzo is a great option. It has a simple application process, and anyone can easily get a current account. There is also several types of current account available to suit various people’s needs.
With your Monzo current account, you can do all the essential tasks you would expect – pay bills, accept payments, move money, and make transferals, for example. It also has a range of useful features like bill splitting, unlimited ATM withdrawals, and even a decent cash ISA.
Pros
- Offers a wide range of account types.
- Bill splitting and tracking functions for group payments.
- Unlimited ATM withdrawals with no charge.
- Has an overdraft feature available.
- No fees for card spending abroad.
Cons
- Limiting daily withdrawal of £400.
- The overdraft charges can add up quickly.
- Cheque processing is not the fastest.
Features
- Mobile banking app for smartphones.
- Four types of current accounts.
- Cash ISA savings accounts.
- Pots to divide your cash for bills etc.
- Bill splitting with Monzo users.
- High-quality debit card for each account.
Monzo Review
Monzo is an online bank that offers a range of mobile banking solutions for UK customers. In this Monzo review, we delve into the different current accounts, its cash ISA, and the utility of its mobile app for your benefit.
Features
- Several different tiers of current account.
- Business current accounts.
- Cash ISA savings accounts.
- Accounts come with a high-quality debit card.
- Free UK bank transfers.
- Pay via Apple Pay and Google Pay.
- Free withdrawals abroad with certain accounts.
- Bill splitting with other Monzo users.
- Pots to keep track of spending.
Monzo has a great set of features and it has a well-rounded service. You essentially get everything you need to accept payments, move money, and manage your finances.
Pricing
Monzo has three tiers of current accounts for general users – this includes both free and paid accounts. We have listed the basic cost of the accounts below:
- Monzo Free
- Monzo Plus: £5.00 per month.
- Monzo Premium: £15.00 per month.
The free account is versatile and comes with the coral red debit card. With this account, you get free UK bank transfers, can create pots for savings, access to the mobile app, and can also make payments via Google Pay and Apple Pay.
The Monzo Plus account is the best option and for just £5.00 per month, it is competitively priced. With this current account, you get the stylish blue holographic debit card. Also, there is a guaranteed variable interest rate of 1% minimum (variable) on your account for up to £2000.
This account also has the added benefit of free withdrawals abroad up to £400 per month, and 1 free cash deposit per month in the UK.
Lastly, the Monzo Premium account provides all the features from the other two accounts. However, you get a cool metallic debit card and improved features. For example, the interest rate earnings are boosted to 1.5% for up to £2000, and the free withdrawals abroad are boosted to £600 per month. Also, you can make up to 5 free cash deposits per month.
Fees and foreign money
Understanding any payment fees and foreign money withdrawals is an important aspect of mobile banking. Currently, Monzo customers can incur the following fees:
- Cash withdrawals outside the UK over your account allowance incur a 3% charge.
- Using the overdraft feature costs 50p per day.
These charges are minimal and they are not too different from most other banks and online banks in the UK.
Regarding foreign withdrawals, you can withdraw £200, £400, or £600 per month (For the free, plus, and premium accounts respectively) abroad. This limit isn’t fantastic, but it should be more than enough for holidays or business trips. Also, you can see exactly how much of your limit you have left via the Monzo mobile banking app.
Cash ISAs
Cash ISAs are currently a decent way to keep your savings separate and to earn a minor amount of interest. Obviously, the interest rates aren’t fantastic due to the current economic climate, but they offer a simple approach to saving.
Monzo offers a Cash ISA that is interest-free as per standard government regulations for up to £20,000. Anyone with a Monzo account can apply for an ISA providing you are at least 16 years of age and a UK resident. Also, you must not have already placed money into another ISA in the same tax year.
The ISA also offers relatively decent access and you can withdraw money from it within 1 business day typically. The interest rates are consistent with other ISAs and nothing special – but this is to be expected as most ISAs today give rates of less than 1.5% AER.
Security
Cyber security is a large concern for any online banking. Firstly, all Monzo accounts are protected by the FSCS (Financial Services Compensation Scheme). Specifically, your deposits are protected by the FSCS for a value of up to £85,000 per person.
Your account/mobile app is also protected by a standard username and password. However, Monzo takes security one step further. For example, they also use “magic links”. Each time you log on, you receive a unique login link that allows only you to access your account.
Also, whenever you try to make a transfer or payment, you will be prompted to enter your PIN. Lastly, if your smartphone allows it, you can use fingerprint identification with your Monzo account.
Monzo Mobile App
Your online banking with Monzo is done via their mobile app. This is free to download and is available on all major OS including Android and iOS. Overall, the app provides a simple banking experience that anyone can easily get to grips with.
It has a minimalistic interface that allows you to easily see the funds you have available. The mobile app also has some incredibly useful features that help with managing your money, building savings, and making payments. We have listed some of these below:
Monzo Pots
In this Monzo review, one of the best features we found is Pots. Pots are essentially separate chunks of money that you can sub-divide in your bank account. You can create various pots for different reasons and move money into them. This is incredibly handy for keeping track of bills or for keeping money aside for specific purposes.
For example, you could create a pot specifically for a holiday fund. Alternatively, you could create a pot for your car insurance. Moreover, any pot that is designated as a bill fund can also have direct debits and payments linked to it.
This feature makes managing your money and outgoing payments a simple affair. It also allows you to easily set money aside for savings or for upcoming events.
Early Payday
The early payday feature is brilliant for making sure you have money in your account on time to pay for important bills.
If your employer pays you via a BACS transfer, you can use the early payday feature. If activated, and Monzo can see the pending BACS payment, it will transfer you the money at 16:00 the day before your salary is meant to be paid! This is essentially an advanced payment that works on the pre-visibility of BACS payments.
Bill Splitting
We also love the bill splitting feature. How many times have you had a meal with your friends, or enjoyed a night out, and then had to struggle to sort payments and who owes what? The bill splitting feature of Monzo’s current accounts negates this.
You can easily keep track of outstanding bills for things like holidays, and see exactly who owes what. The only downside to this feature is that it only works for Monzo accounts. As a result, only friends and family who used Monzo would be able to use the bill splitting feature with you.
Customer Support
Monzo account holders have access to 24/7 live chat customer support via the mobile app. In fact, all customer support is done via the app. This makes it incredibly convenient as you can access your accounts and customer service from a single location.
Customer support is one of their strong points and you should have no issue getting help. If you do not want to use the live chat, you can also send an email support ticket.
Monzo Review Summary
Monzo is certainly a great contender and one of the better online banks available. The mobile app is easy to use and has a host of excellent features that help you manage your money and savings.
Some of these features are limited (for example the bill splitting is only between Monzo users), but if you have trouble keeping track of bills, you will benefit greatly from a Monzo account.
Also, the current accounts are comprehensive and have all the features you would expect. We also like the 24/7 availability of customer service, and the decent foreign cash withdrawal amounts.
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