The Ultimate Monzo Review: Fees, International Transfers, and Monito's Verdict

Yes, Monzo accounts are safe. Up to £85,000 of your money is protected by the Financial Services Compensation Scheme (FSCS). If the bank were to close, you would automatically get compensated. Learn more about what the FSCS covers here.

Monzo has been reviewed and recommended as the best bank by Which.co.uk, and it also has an excellent rating (4.5/5 stars over 18,000 reviews) on Trustpilot. Monzo will require you to use your PIN each time that you move money and a 3D secure passcode text verification mechanism for online payments.

Monzo Eligibility and Required Documents

Monzo is available to residents and citizens of the UK. To sign up you will need at least one of the following:

• UK Passport;
• Driving licence (provisional is okay);
• National ID card;
• Biometric residency permit.

If you are looking for a UK bank account for non-residents, read our article on how to open a UK bank account for non-residents.

Britain has one of the most competitive banking markets globally, with dozens of established and new banks vying for attention. Amongst the so-called "challenger banks," Monzo, with its distinctive coral pink cards, is hard to miss.

Monzo was founded in 2015 and has pinched more than one million customers from traditional players like Barclays and HSBC. What’s its secret? Simply put, Monzo offers an innovative and intuitive way to manage your money through its app while also having the guarantee of an FCA regulated bank.

As well as making payments, the Monzo App lets you choose and change your PIN and freeze your card if you lose it. But most valuable of all, you can manage your money with more precision, setting up saving and spending targets.

It also doesn’t hurt that it’s free.

Monzo is particularly attractive to newcomers to the UK as the bank does not require proof of address to open an account. Plus, Monzo now offers international transfers thanks to its partnership with Wise.

Monzo Current Accounts

Monzo is similar to a conventional bank, only for the fact that it's 100% online. This means that its current account is the same as the one you could find in a more conventional bank. As an account holder, you have an account number and a sort code.

Monzo also allows you to open a joint account. The latter has the same benefits as a current account, but you receive two debit cards for it, one for you, the other for your partner. You can switch from your account to the joint account within the app.

Note that every Monzo customer gets a free overdraft of up to £20. After that, it cost 50p per day overdrawn (fees capped at £15.50 per month) if you pass the credit check. You can check out the app if you're eligible for an overdraft.

Monzo App — Key Features

Monzo has a very user-friendly app, great to manage everyday spending. There are five tabs in the app: Home, Summary, Account, Payments and Help.

• “Home” displays the account balance and the amount of money spent on that day.  All the expenses are listed chronologically, and you can tap on them to get more details such as the shop's address, payment history, receipt, and notes.
• “Summary” gives an overview of your monthly budget. The spendings are organised into twelve categories: General, Transport, Groceries, Eating Out, Personal Care, Bills, Finances, Entertainment, Expenses, Family, and Holidays.
• Every payment made with a Monzo account is automatically registered in one of these categories. It’s a great tool that makes budgeting easier. At the end of each month, you can see how much you spend on a single category or even in a single shop.
• The “Account” tab gives access to the bank account information (BIC, Sort Code, Account Number) and to the Monzo card features (pin, freeze, report stolen…). You can pair your card with a Google Pay account from here.
• The “Payments” tab is where you will find all the options to send or request money in the UK and internationally.
• Finally, the tab “Help” gives you access to the FAQ and customer service.

Monzo Interest and Savings Pots

Monzo has also implemented a Savings Marketplace, where you may save money with select UK banks that offer exceptionally high interest rates on savings deposits. While you may have to follow deposit minimums and withdrawal limits, you can earn over 1% interest.

Monzo's Savings Pots are equally impressive. You can set up to 10 savings pots, which help you budget for personal goals like a vacation or a new computer. With Monzo's Round-Up feature, you can round up each purchase you make to the nearest pound and deposit the difference into your savings. This allows you to passively save money even while you spend.

The Monzo Card

Thanks to its bright coral colour, the Monzo card has a very distinctive look.

The Monzo card is a free debit card that has all the advantages of a regular Mastercard. You can use it online, and it is widely accepted worldwide.

Because it is linked to the Monzo app, the card offers some extra perks. You can pick your PIN through the app, and you can even change it whenever you want – where a traditional high street bank would need you to go into a branch or spend ages on calling a hotline.

If you fear you’ve lost your card, you can freeze it and unfreeze it with a single tap. If your card has been stolen, you can also freeze it and order a new one in one instant.

Note that Monzo also offers free Mastercards for joint accounts.

Monzo International Transfers with Wise

Monzo has partnered with Wise to provide its users with affordable international money transfers. Its rates are the same as Wise’s, which you can compare to others by using Monito.

To send money abroad with Monzo, you need to select “International” in the Bank transfer section of the app (the route is Payments -> Pay -> Pay by bank transfer -> International).

If you have a Wise account, you can sign in; if you don’t, you can create one in a couple of minutes. Once the account is set up, making an international transfer is relatively easy.

First, you enter the name of the recipient and select the currency you want to use. Then, you put in the amount you wish to send, and the app instantaneously displays the exchange rate and the fees associated with the transfer. Finally, if you’re happy with it, you register the recipient's banking details and confirm the payment.

How Do I Open a Monzo Account?

To open an account with Monzo, you need a smartphone with an internet connection and proof of ID (passport, driving licence, National ID card or other government-issued photo ID). That’s it.

Download the Monzo app and then fill out the form straight from your phone. After a couple of days, you'll receive the distinctive coral pink MasterCard in the mail, free of charge.

Many people use Monzo as a secondary account alongside a current account. However, if you want to make Monzo your primary account, you can use their Switch service to transfer all your direct debits and bills from your old account straight to your Monzo.