Hi there, we will review Monzo to help you find out whether it is the right neobank for you!
Chances are you have likely heard of Monzo, one of the leading digital banks in the world, on a mission to provide a seamless and modern banking experience.
Founded in 2015 in London, UK, Monzo has since experienced significant growth, currently boasting over 9 million users across the United Kingdom, supported by a team of over 2,400 employees.
Monzo offers a range of financial services including no-fee bank accounts, instant notifications for transactions, intuitive budgeting and saving tools, and robust security features, all accessible via a mobile app. With a mission to make banking smarter and more accessible, Monzo has attracted millions of users by offering transparent, user-friendly, and innovative financial solutions.
In this review, we will dive deeper into the key features and benefits of Monzo.
Overview
Monzo is one of the leading neobanks in the UK. They are a startup that provides a more modern and efficient service than the traditional banks. It is a fully fledged bank (unlike some of its rivals), has a full UK banking license, and is regulated by the Financial Conduct Authority (FCA).
Budget-conscious users will benefit from Monzo’s detailed spending categorisation and real-time notifications, which help you meticulously track and manage their expenditures.
However, individuals or businesses needing to perform high-value transactions may find Monzo’s transaction limits restrictive.
In addition to its core banking services, Monzo offers premium subscription plans, providing users with enhanced features such as travel insurance, interest on balances, and exclusive discounts and offers.
Monzo was founded by Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon, and Gary Dolman, driven by the vision of creating a smart and accessible banking experience. Since its inception, the company has attracted significant investment, reaching a valuation of $4.5 billion after raising $500 million in its 2021 funding round.
Their name reflects its aim to bring a fresh and innovative approach to banking, and its success is evident from its large and growing customer base in the UK. With its intuitive mobile app and focus on customer-centric features, Monzo continues to expand its offerings, making it a top choice for digital banking solutions.
Pros and Cons
Pros
- Free overseas card transactions
- Earn +4% AER (variable) paid monthly
- Excelent advanced tools
- Fully licensed UK bank
- Ergonomic and intuitive app
Cons
- Limited free ATM withdrawals
- Paid cash deposits
- Only available in UK
Account Types
With N26, you have four options for current accounts:
- Free – free of charge
- Extra – €3/month
- Perks – €7/month
- Max – €17/month (with a 3 months minimum)
- Under 16 – free of charge
- Business – has a paid and free option only
The Free plan comes with:
- A UK current account
- No virtual cards option
- 4.10% AER (variable) interest, paid monthly
- Up to €200 fee-free cash withdrawals abroad (with a 3% fee after that)
- €1 charged for every cash deposit
- 0.59% investment fees
The Extra plan comes with:
- A UK current account
- Available virtual cards
- 4.10% AER (variable) interest, paid monthly
- Unlimited fee-free cash withdrawals in the UK and EEA and £200 fee-free abroad (with a 3% fee after that)
- €1 charged for every cash deposit
- 0.59% investment fees
The Perks plan comes with:
- A UK current account
- Available virtual cards
- 4.60% AER (variable) interest, paid monthly
- Unlimited fee-free cash withdrawals in the UK and EEA and £600 fee-free abroad (with a 3% fee after that)
- 3 fee-free cash deposit (with €1 charged after that)
- 0.49% investment fees
- Partner offers
The Max plan comes with:
- A UK current account
- Available virtual cards
- 4.60% AER (variable) interest, paid monthly
- Unlimited fee-free cash withdrawals in the UK and EEA and £600 fee-free abroad (with a 3% fee after that)
- 3 fee-free cash deposit (with €1 charged after that)
- 0.49% investment fees
- Partner offers
- Diverse insurance and cover offers
How to open an account
In order to use Monzo, you will need to download the mobile app, provide personal information and confirm your identity.
Moreover, you will also be asked to provide the following:
- Be at least over the age of 16 and be a legal resident in UK
- A valid mobile phone number, email address and personal information (current address, date of birth, full name, and citizenship)
- Document for identity verification
- Are able to verify yourself in one of our supported languages
- Short video of yourself
Also, you may be asked a few questions about yourself and the purpose of your account (these questions will not impact your eligibility).
The Monzo Card
No matter which account you choose, your Monzo card will be a debit Mastercard, which you can use to make purchases around the world wherever Mastercard is accepted.
Likewise, you can spend in multiple currencies and get automatic money conversion at near the real exchange rate. Making international purchasing faster and easier.
You can have more than one card and they can be physical, virtual or disposable (depending on the plan). Furthermore, you can match personalyse the card and you can also associate your virtual card with your Apple Pay wallet or Google Pay wallet.
Fees
International Money Transfer Fees
Monzo doesn’t charge exchange markups. So you get what your money is worth, without conversion fees (using only the real exchange rate, provided by Mastercard).
However, while Mastercard does base all foreign exchange rates on the mid-market rate, the currency conversion may be marginally higher or lower – albeit by only 1 – 2 % – depending on factors such as destination country, transfer size and availability of the foreign currency.
Cash Withdrawal Fees
For cash withdrawals, ‘Free’ account holders can withdraw up to €200 free ATM withdrawals abroad per month without fees.
‘Extra’ account holders can withdraw up to €200 ATM withdrawals abroad per month without fees, ‘Perks’ account holders up to €600 per month and ‘Max’ account holders also up to €600 per month. These plans have unlimited fee-free ATM withdrawals in the UK and EEA.
However, any withdrawals beyond these value limits are subject to a 3% fee.
Moreover, cash deposits for ‘Free’ and ‘Extra’ account holders cost €1 for every cash deposit made. On the other side, for ‘Perks’ and ‘Max’ account holders you get 3 fee-free cash deposits (with the same cost after).
Safety Measures
Monzo, like any legitimate bank, is regulated by the relevant financial authorities. In the case of Monzo, it is regulated by the Financial Conduct Authority (FCA) in the UK and the Prudential Regulation Authority (PRA), which provides a significant level of safety and security for its users.
Monzo is also covered by the UK’s Financial Services Compensation Scheme (FSCS), meaning customers’ money is protected up to £85,000 per person per institution if the bank fails. This is an essential safety net for users and offers a significant level of protection.
In order to ensure your card’s security, Monzo offers several protective measures:
- Biometric authentication
- Spending limits to avoid unexpected expenses
- Secure customer authentication
- Real-time fraud detection
As a result of the fast evolution of new scams, Monzo is continually developing new solutions to combat the latest fraud and scam technologies.
Supported Countries
At the moment, Monzo is only available to customers in the United Kingdom.
Likewise, this means that if you reside in the UK, you can easily open an account and access Monzo’s wide array of financial services.
Costumer Service
In terms of support, Monzo offers its customers a 24/7 live chat for urgent enquiries.
Monzo also offers live chat, email, and phone support between the hours of 8am-7pm for non-urgent support. Although, Monzo gives priority support to its business users to ensure those with work-related issues are solved as soon as possible.
One special feature that Monzo’s customer support offers is that if you have an issue with a transaction (depending on the transaction type) and flag it, Monzo will credit your account with the same amount until the issue is resolved.
Bottom line
In conclusion, Monzo excels with its straightforward and efficient banking solutions, offering a secure current account supported by robust security measures and an intuitive, well-designed mobile application. Instant notifications for transactions and virtually fee-free daily use with the standard plan further enhance its appeal.
Despite these strengths, Monzo does have a few limitations. The fees for foreign currency ATM withdrawals and the necessity to upgrade for additional premium features might be drawbacks for some users. Additionally, while Monzo offers a streamlined set of banking services, it might lack some traditional banking features that certain customers seek.
However, Monzo’s focus on simplicity, transparency, and continuous innovation ensures it remains a strong contender in the neobank space. Its dedication to enhancing user experience through continuous improvement and expansion is evident, making it a reliable choice for both everyday banking needs and more complex financial management.
To sum up, whether you’re looking for a secure and efficient current account, real-time financial insights, or premium features like travel insurance and exclusive discounts, Monzo provides a versatile and trustworthy financial solution tailored to the needs of the modern consumer.
