Every little thing you might want to learn about Monzo Financial institution

With 10 million clients and counting, Monzo’s recognition has swept throughout the UK as clients flock to get their palms on its hot-coral card. The digital financial institution led the best way with a wide range of options to assist clients handle their cash from the consolation of their telephones. 

From spending insights and overdrafts to opening a financial savings pot, you’ll be able to deal with most points of your funds from the Monzo app. This evaluate focuses on Monzo’s normal free-to-use present account relatively than the paid-for choices.

Learn how Monzo works and whether or not it’s price getting an account.

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What’s Monzo?

Monzo is a digital financial institution that’s operated solely via its smartphone app. It began its days again in 2016 as a pay as you go card, however Monzo is now a fully-fledged financial institution with tens of millions of consumers throughout the UK.

Monzo has upgraded its options over time, and now provides a number of forms of present account and different companies like borrowing, financial savings and even investing merchandise that can assist you handle your cash. We’ll be placing our focus solely into its free normal present account for this evaluate, although we even have evaluations of its Additional, Perks and Max accounts.

Sorts of Monzo account

Monzo’s expanded its providing over time, so it presently provides seven various kinds of accounts, with one other on the best way quickly. 

Monzo app

One of many causes Monzo is as common as it’s is the app. That is the place you handle your Monzo account as there aren’t any branches. 

Design and customisation

The design of the Monzo app has been via a number of iterations over time, with the most recent one a significant replace to the house display design. 

An enormous a part of that is customisation, so you’ll be able to select what you see and the place. Right away it makes it quite a bit simpler to see your fundamental Monzo account, and entry key options similar to your card and get statements. 

Above this you’ll see chosen insights into your spending, whereas Pots can be reordered and customised, supplying you with the selection between the “basic look” (with footage) or a listing.

You continue to have the Developments, Funds and Assist tabs on the backside of the display to rapidly leap between these sections. You’ll discover extra settings by hitting your initials (or a photograph should you’ve set this up) within the high left nook.

Categorisation and notifications

While you make a fee, you obtain a notification in regards to the transaction, together with how a lot you’ve spent that day. The transaction can be robotically assigned to a class. With the usual account, you’re restricted to a set variety of classes, however they beautiful a lot have all those you’d need, together with groceries, procuring and payments. 

It’s straightforward to alter the class of a transaction, and while you do, it provides to alter related previous and future transactions in a single go, so that you don’t should manually change a number of transactions in a row. 

You may as well add tags and extra notes to your transactions to assist type your funds – that is significantly useful within the joint account to higher talk a transaction. 

Budgeting options

One of many large advantages of Monzo is that it helps you finances successfully. Though, should you actually need to get into the nitty gritty you then is perhaps higher off with a third-party budgeting app.

Monzo provides “Monzo Developments”, which provides you an summary of your funds within the app, each on the house display and in a separate tab. 

Right here, you’ll be able to see your particular person and mixed balances throughout your totally different Monzo accounts and any Pots you’ve arrange and monitor your spending and see how a lot you’ve paid for various classes of bills. 

For instance, it’ll present how a lot you’ve spent on issues like transport, leisure or groceries to call a number of. It additionally helps you to evaluate your spending insights month on month to spotlight any adjustments.

You possibly can set targets on your spending every month — this may be damaged down into particular classes as effectively. This may then present you the way a lot you might have left to spend of your general finances (and for every class should you’ve set particular targets for these).  

As well as, you’ll be able to create as much as 20 Monzo Pots. These can be utilized for various bills, similar to payments, meals, and nights out. That is similar to the “jam jar” or envelope budgeting technique.

You’re additionally capable of see a listing of your whole common outgoings every month together with payments and subscriptions. 

Integrations

The Monzo app is secured with biometrics or a passcode. You may as well be emailed a “magic hyperlink” to log in. 

You should use Monzo with an excessive amount of apps that allow you to join your account by way of Open Banking, together with Cheddar, Emma, Plum and Airtime Rewards.

As well as, you should utilize IFTTT, which we touched on earlier. This can be utilized for auto-savings, however there are literally a good few various things doable with this, from ridiculous (saving cash everytime you Tweet) to wise (placing your transactions right into a spreadsheet or taxing your self while you get a takeaway). 

These are, realistically, a little bit of enjoyable, however they might provide help to lower your expenses in alternate methods, like doing extra steps – yep, you’ll be able to join it to Fitbit. You possibly can even join it to your Octopus Vitality account and put away cash while you save on vitality. 

You possibly can pay with Apple Pay and Google Pay, in addition to utilizing a sensible watch like a Fitbit or Samsung Watch.

Card controls and digital playing cards

You possibly can determine in order for you a decrease cap for contactless spending, set by default at £100 for single faucets and £200 cumulative earlier than you might want to enter the PIN. You may as well block transactions to playing web sites and companies via the app.

Monzo means that you can test your PIN and debit card particulars, together with the CVC, within the app. You may as well copy these to stick elsewhere, although I discover this doesn’t all the time work. 

For those who assume you’ve misplaced your card, you’ll be able to freeze it within the app to cease funds from going via till you discover it.

Digital playing cards are restricted to the Premium account holders. For those who assume you’d like an account that gives digital playing cards, Starling is perhaps an excellent choice.

Sending and receiving cash within the Monzo app

If you might want to ship or obtain cash, you might have a number of totally different choices.

Firstly, you’ll be able to simply share your account quantity and kind code by way of messenger, e mail and different apps. It preps a message for you with all the main points, so that you don’t should shuttle. 

For those who’re requesting cash from individuals, you’ll be able to ship them a QR code or create a singular Monzo.me hyperlink within the app for individuals to pay you again. You possibly can select the quantity you’re asking for, too. You should use this to pay individuals, too.

When you have pals on Monzo, you’ll be able to cut up payments and funds within the app by deciding on “Cut up invoice” from the transaction. Yow will discover individuals with Monzo accounts close by should you’ve obtained Bluetooth turned on, too. Nice while you’ve simply had dinner with your mates and don’t need to faff with coming into financial institution particulars. 

For those who’re often splitting payments with the identical individuals, similar to your companion, you can even arrange a shared tab. That is much like what Kroo provides, because it lets a number of individuals assign transactions and select the right way to cut up the funds, after which it really works out who owes who what while you select to settle up.  

What occurs to my Monzo account if I lose my telephone?

In case your telephone is misplaced or stolen, you’ll be able to freeze your account to stop any funds or transactions from being made. You’ll simply must log into Monzo’s emergency webpage to activate the freeze. It’s a extremely primary model of Monzo that solely means that you can see your accounts, test your steadiness, view latest funds from the final 90 days and freeze or unfreeze your card.

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Monzo present account

As a present account, Monzo is fairly first rate. It’s a good selection for utilizing overseas, though different accounts positively trump it, actually for longer holidays. 

Account fundamentals

You get Monzo’s basic scorching coral card with the account, though there have been promotions that may get you one other color while you refer pals. The cardboard is shipped out totally free and you will get a alternative totally free should you lose it. 

As well as, you can begin utilizing the cardboard earlier than it even arrives by setting it up with Google Pay and Apple Pay.

You’re additionally capable of arrange or amend standing orders or direct debits instantly from the app. 

To pay in money, you might want to deposit it at a PayPoint. Monzo costs a £1 charge for making the deposit. You possibly can deposit £5 to £300 at one time, and pays in a most of £1,000 each 180 days. It seems in your account inside ten minutes. 

You possibly can pay in cheques along with your Monzo app, too. These beforehand needed to be posted, however now you can pay in a cheque as much as the worth of £500 utilizing your telephone’s digicam.  

There’s a £10,000 day by day switch restrict to UK financial institution accounts. That is decrease than most banks usually provide, with Chase providing £25,000 and Revolut letting you switch £50,000 per day. Starling is larger than this, at £1m. 

In contrast to most different banks, there’s a restrict to the amount of money you’ll be able to withdraw — you’ll be able to take out as much as £400 each 30 days within the UK (after {that a} 3% charge applies). Nonetheless, should you’re utilizing Monzo as your fundamental financial institution there are not any limits at dwelling or within the EU.

Can I take advantage of Monzo overseas?

Monzo is a reasonably first rate account to make use of overseas. You possibly can spend fee-free all all over the world, and when you’ve got it as a “fundamental account”, then there’s no cap on money withdrawals in Europe both.

Nonetheless, if not, then you’ll be able to solely withdraw as much as £400 totally free per thirty days in EEA international locations. All customers are capped at £200 of withdrawals in non-EEA international locations. For those who go over these limits a 3% charge applies.  

This isn’t one of the best account available on the market — Chase provides fee-free spending and withdrawals and 1% cashback in your spending. Try our roundup of the best debit and credit cards to use abroad for extra. 

Monzo account charges

Though Monzo’s normal account is free to make use of, the next charges might kick in for sure funds or companies: 

  • Money withdrawals within the UK:  Monzo costs 3% on money withdrawals over £400 in a 30-day interval within the UK. 
  • Money withdrawals overseas: A 3% cost applies to withdrawals over £400 in EEA international locations and £200 in international locations outdoors of the EEA. 
  • Money deposits: You’ll should pay £1 per money deposit into your Monzo account
  • Card replacements: Monzo costs £5 for card replacements except you meet the standards for two free playing cards per 12 months, your card expires, is stolen otherwise you’re the sufferer of fraud. 

You get free card replacements should you use Monzo as “extra of a financial institution”. Monzo doesn’t precisely clarify how they determine this, however it’s more likely to be common cash out and in of the account. You’ll get two replacements per 12 months per account. 

Monzo overdraft

Monzo provides an overdraft on its account. Relying in your credit score rating, this may very well be 19%, 29% or 39% to make use of it. These charges are decrease than most different banks, however it’s nonetheless an costly approach to borrow and there are better options.

You possibly can borrow as much as £2,000, although Monzo chooses this based mostly in your credit score rating and present borrowing. 

Monzo retains a tally of how a lot your overdraft will value you every month based mostly on the quantity you might have overdrawn and for a way lengthy. This stays on the high of your account, so you’ll be able to hold tabs on the price. 

Different issues you are able to do with the Monzo present account

Monzo has a number of extra options, together with a wage sorter, loans, bank cards and a teen account. Listed below are the main points.

Wage sorter

This characteristic splits your wage throughout totally different pots, similar to cash for spending, payments and financial savings. It really works for any sums over £100 coming into your account with one of many beneath fee varieties. You possibly can select your sorting settings inside 72 hours of cash coming into the account.  

Eligible fee varieties embrace:

  • Financial institution Transfers
  • BACS
  • Money Deposits
  • CHAPS
  • Cheques 
  • Peer to see

Receives a commission early

In case your wage is paid into Monzo, you may be paid the cash at 4pm the day earlier than. That is for BACS funds as much as £20,000. That is merely Monzo clocking that cash is because of enter your account and passing it over a day early. It isn’t thought of to be borrowing, so it received’t influence your credit score rating.

16-17 account

Youthful college students aged 16-17 can apply for a Monzo account as effectively. The Monzo 16-17 account works in the identical manner as the usual one, besides there are spending blocks constructed into the account for age-restricted issues like playing. 

Mortgage tracker

You possibly can join your mortgage to the Monzo app and monitor your fee progress, discover overpayments and get extra insights. Although, how helpful this shall be is questionable.

Loans and bank cards

Monzo provides loans of up to £25,000 for eligible account holders. It additionally provides Monzo Flex, which is mainly a bank card with Purchase Now, Pay Later (BNPL). You possibly can cut up the price of your purchases into instalments over three, six or twelve months with this.  

Monzo rewards

Monzo’s not provided a lot within the rewards area throughout its time, however it’s slowly enhancing this. 

Financial savings charges with Monzo

To save cash with Monzo, you may make use of the Pots characteristic to separate cash out of your fundamental account. Nonetheless, to earn curiosity on this cash you’ll must open a particular financial savings pot. This pays 3.6% in the intervening time, although there’s an account at 4.02% by way of Shawbrook too. Each may be overwhelmed with other savings accounts. 

Monzo change and referral provides

Monzo doesn’t provide any switching offers presently, although you’ll be able to nonetheless change as you’ll to another financial institution utilizing the Present Account Change Service (CASS).

We now have a round-up of the best bank switching deals which can inform you which suppliers are providing top-paying welcome bonuses, cashback and rewards should you change to them.  

You may get £5 for you and a good friend should you refer a good friend.

Cashback with Monzo

Monzo launched cashback in late 2023.

You possibly can’t earn cashback on your whole spending, as Chase provides. As a substitute, Monzo has a listing of collaborating retailers, the place you’ll be able to earn cashback in your spending. These change pretty usually, with Monzo notifying you every week of your cashback provides. On the time of writing, I can get 3% cashback at Sainsbury’s, 5% from Simply Eat and 10% from Krispy Kreme. 

These must be loaded earlier than you should utilize them, and cashback will go right into a separate pot, so you’ll be able to hold monitor of what you’ve earned. We’ve written a full guide on the way it works. 

The right way to apply for a Monzo account

You possibly can apply for a Monzo account totally free, right here’s how:

  1. Obtain the app: Search “Monzo’” within the App Retailer or Google Play, then hit obtain. It’s price seeing if any pals already use Monzo as you would possibly be capable of get a £5 referral hyperlink to make use of when becoming a member of.
  2. Private particulars: You’ll fill within the first part of the applying with private particulars similar to your title, dwelling tackle, employment standing and telephone quantity.
  3. ID checks: Monzo will then confirm your ID by asking you to snap an image of your ID. You should use your passport, driving licence, nationwide ID card or biometric residency allow. Then file a selfie video. 
  4. Select your account: As soon as your ID is confirmed you’ll be able to select your Monzo account and card. 
  5. Activate your card: You’ll must activate your card within the Monzo app to start out utilizing it. (It often takes a few days for it to reach at your property tackle). 

Will there be a tough credit score test while you apply?

Monzo is without doubt one of the few UK present accounts that doesn’t carry out a tough search in your credit score report while you apply – so long as you don’t apply for any borrowing similar to an overdraft or Monzo Flex. 

This implies it may be an excellent “dummy” present account for financial institution switching. Although bear in mind that should you change away you’ll have to attend at the least 30-days to open one other – and there’s no assure they’ll give you one.

Is Monzo secure?

Monzo is a fully-fledged financial institution and is regulated by the Monetary Conduct Authority (FCA). That signifies that it’s legally required to deal with clients pretty and defend their funds. 

As much as £85,000 of the cash held in your Monzo is protected by one thing referred to as the Monetary Companies Compensation Scheme (FSCS). 

This mainly signifies that if Monzo goes bust, you’ll be capable of stand up to £85,000 a refund. 

Nonetheless, should you add cash to some linked financial savings accounts (although not all), they might held with different banks. It’ll be clear who that is (if it’s not Monzo) while you open that financial savings pot.

Will Monzo shut my account?

There are sometimes stories of Monzo closing or freezing financial institution accounts – there’s even a Facebook group devoted to impacted customers. And so they’re not the one financial institution to come back below hearth for this, NatWest, Barclays, Monese and Revolut have additionally hit headlines for checking account closures too. 

In the end, as with all banks, Monzo has the ability to freeze, block or shut your account to guard different clients. 

A few of the the reason why they could shut your account embrace: 

  • Uncommon exercise:  If they think your account is getting used for legal exercise it could be blocked or closed. (This consists of if their fraud programs decide up that another person might need entry to your account to guard your cash from being stolen.)
  • Dangerous clients: Any account holders which can be flagged as a threat to Monzo or different clients might have their accounts closed. 
  • Police instruction: Monzo will shut your account in the event that they’re requested to by the police as a part of a monetary crime investigation. 

We don’t assume it ought to be one thing to fret about over different banks. Monzo argues they could seem to shut extra accounts, however that’s as a result of their know-how means they’re higher outfitted to identify dodgy behaviour. 

Nonetheless, they received’t all the time get this proper. So in case you are affected, then contact the Monetary Ombudsman.

Monzo Good Cash Folks ranking

Clients have rated Monzo 4.92/5 over at Smart Money People. 

Constructive evaluations of Monzo’s normal present account highlighted the benefit of use, app options and financial savings pots. 

Detrimental evaluations of Monzo’s normal present account had points contacting customer support and getting their queries resolved. 

The right way to get assist with Monzo

Monzo is a totally digital financial institution and doesn’t have any bodily branches so that you can go to. So, many of the customer support is managed throughout the app. 

You may get in contact with Monzo’s buyer companies crew 24/7 with pressing queries by tapping the “assist” tab and beginning a chat (at the least it’s best to be capable of – take a look at the subsequent field if it doesn’t seem for you).

Monzo additionally provides buyer assist by way of name between 7am and 8pm. You possibly can name totally free on 0800 802 1281 should you’re within the UK or +44 20 3872 0620 should you’re calling from overseas. 

There are some issues Monzo can’t assist with over the telephone although. This consists of sharing account info and updating your cellular quantity or e mail tackle registered to your account. (You possibly can replace these within the settings in your app).

Execs and cons of Monzo

Execs

  • Easy to arrange and use
  • A lot of budgeting options and a few spending insights
  • Charge-free spending overseas
  • Automated financial savings together with spherical ups and your individual scheduled financial savings pots
  • Means to mix with IFTTT to spice up financial savings
  • Doubtlessly decrease value overdrafts
  • FCA-regulated and FSCS safety
  • No credit score checks except you apply for an overdraft

Cons

  • 3% costs on money withdrawals over the free allowance within the UK and overseas if it’s not your “fundamental account”
  • No financial institution branches or face-to-face buyer assist
  • £1 charge for every money deposit you make (and you’ll solely deposit £1,000 each 6 months) 
  • It’s a must to pay for full performance
  • No digital playing cards on the free account
  • No financial institution switching provides 

Abstract: Is Monzo any good? 

Past the fandom, Monzo’s normal present account is a good all-rounder for spending and budgeting. 

The redesign is a return to a extra intuitive expertise, and it nonetheless provides a lot of options that provide help to become familiar with managing your cash, setting budgets and saving too.

Little issues like having the ability to view your debit card quantity or PIN make paying a lot less complicated as effectively (although after all, many others provide this too).

General, should you’re on the lookout for a straightforward approach to finances and handle your on a regular basis spending, it’s price giving Monzo a glance – so long as you’re snug with a totally digital banking expertise.

Nonetheless, we predict there are higher choices, which we’ve listed beneath.

Alternate options to Monzo

For an on a regular basis banking expertise, Starling nonetheless has the sting in our opinion. Plus there are not any limits on money withdrawals and the power to make use of the Submit Workplace for money.

Chase can be very straightforward to make use of however comes with the added bonus of 1% cashback at dwelling and overseas. 

Alternatively, you may have a look at a reward based mostly account from extra established banks which have much-improved apps in addition to entry to excessive avenue branches (so long as they’ve not been shut down). Freebies embrace free Disney+ from Club Lloyds or £5 a month from Halifax Rewards. 

And, with regards to saving, you’re most likely higher off automating the cash you’d wish to put aside to go to an account with one other supplier. Which means that you’ll be capable of reap the benefits of the best savings rates on the market.