Monzo Business Account review

Monzo has a fully free business account and some paid upgrades

Monzo launched business accounts in 2020. It offers three different options, a free account and two paid accounts. It’s for UK-based sole traders and active limited companies. Here’s our take on the account, including whether it’s worth paying for the extras.

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What’s the difference between a Monzo Personal Account and a Monzo Business account?

A Monzo Business account is specifically for businesses, as such it’s got additional features that businesses will find useful, such as integration with accounting tools, being able to create and send invoices and additional cards and users.

Because of the limitations from the free Monzo Lite account, which I’ll detail below, it’s worth checking if you need a business account at all, as sole traders could simply use a regular, personal bank account for their business banking. However, the Monzo terms and conditions don’t allow you to use the personal bank account for business transactions, so you’d have to go with a different bank account or choose another free business account.

Monzo Business Account tiers

There are three different Monzo Business Account tiers, the free account being Monzo Lite and the most expensive option Monzo Team.

Here’s a brief rundown of the tiers and what they offer. All accounts have a debit card and 24/7 customer support.

Feature	Lite	Pro	Team
Monthly cost	£0	£9/m	£25/m
fee-free instant UK bank transfers (unlimited)	✅	✅	✅
Payment links	✅	✅	✅
Accept payments with Tap to Pay	✅	✅	✅
Fee-free spending abroad	✅	✅	✅
Pots to separate money	✅	✅	✅
Deposit cash and cheques	✅	✅	✅
International payments (outbound and inbound)	✅	✅	✅
Automatic tax budgeting	❌	✅	✅
Auto-export transactions, statements and invoices	❌	✅	✅
Invoicing	❌	✅	✅
Virtual cards	❌	✅	✅
Connect other accounts	❌	✅	✅
Team access	❌	❌	✅
Payment approvals	❌	❌	✅
Expense cards and management	❌	❌	✅
Bulk payments	❌	❌	✅
Integrated accounting	❌	❌	✅
Budgeting, categorised spending and digital receipts	❌	❌	✅

Is it worth paying for extras?

It could be, depending on what it is that you need.

Essentially, the Lite account would work for very small businesses, but if you want to integrate with accounting tools or create invoices, you’d need at least the Pro account. These features are available with other free accounts, though. 

The Team tier would be suited if you have several team members and want to track and approve their transactions. If you have a limited company then you can have up to 15 team members on the account — the first six are included, then it costs £5 per month per additional team member. You get integrated accounting with this tier too.

Monzo Business Account fees

Other than the cost of maintaining the account which depends on the membership tier you are on, there are very few fees with Monzo Business. 

Fee	Cost
Direct debits	£0
Standing orders	£0
Sending money within the UK	£0
Cash withdrawals in the UK	£0
Cash withdrawals in the European Economic Area (EEA)	£0
Cash deposits (at PayPoint or Post Office branches)	£1 per deposit
Debit card payments	£0

Which businesses can get Monzo Business?

Monzo Business is available to sole traders and directors of registered limited companies. 

Limited companies need to have an active status, company director and at least one person of significant control on Companies House and must make money mostly from selling goods or providing services, not from investment income. 

Monzo Business Account reviews

On our sister site, Smart Money People, customers have rated Monzo Business 4.89/5, with customers talking highly about their customer service and users valuing the pots feature that lets them split their money up for different uses. 

Some negative reviewers mention that they think there are better free business accounts elsewhere. 

Read reviews of Monzo Business

Summary: is Monzo Business any good?

The Monzo Lite business account is completely free, which is the main benefit. There are a lot of free options that charge for money coming into and leaving the account, so it’s refreshing to see one where there are very few fees. The only fee you’ll pay is for depositing cash into the account, as you would with a personal Monzo account. 

However, there are drawbacks to this, as Monzo’s free business account doesn’t let you integrate with accounting software or have invoicing tools. So this account would be a good account if you don’t need these, but if you do, you might be better off paying the larger cash deposit fee with Starling and having these tools available. 

In terms of the paid upgrades, the Pro account offers similar features to many free accounts, so you’d probably be better off with a different bank.

If you don’t think Monzo Business is for you, we have compared a range of other free business accounts to help you find the best one for your business.