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Everything you need to know about Monzo Bank

With 10 million customers and counting, Monzo’s popularity has swept across the UK as customers flock to get their hands on its hot-coral card. The digital bank led the way with a variety of features to help customers manage their money from the comfort of their phones. 

From spending insights and overdrafts to opening a savings pot, you can handle most aspects of your finances from the Monzo app. This review focuses on Monzo’s standard free-to-use current account rather than the paid-for options.

Find out how Monzo works and whether it’s worth getting an account.

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What is Monzo?

Monzo is a digital bank that is operated entirely through its smartphone app. It started its days back in 2016 as a prepaid card, but Monzo is now a fully-fledged bank with millions of customers across the UK.

Monzo has upgraded its features over time, and now offers several types of current account and other services like borrowing, savings and even investing products to help you manage your money. We’ll be putting our focus solely into its free standard current account for this review, though we also have reviews of its Extra, Perks and Max accounts.

Types of Monzo account

Monzo’s expanded its offering over time, so it currently offers seven different types of accounts, with another on the way soon. 

• Monzo Standard 
• Monzo Extra
• Monzo Perks
• Monzo Max
• Monzo 16-17
• Monzo Under 16s (coming soon)
• Monzo Joint Accounts
• Monzo Business

Monzo app

One of the reasons Monzo is as popular as it is is the app. This is where you manage your Monzo account as there aren’t any branches. 

Design and customisation

The design of the Monzo app has been through a few iterations over the years, with the latest one a major update to the home screen design. 

A big part of this is customisation, so you can choose what you see and where. Straight away it makes it a lot easier to see your main Monzo account, and access key features such as your card and get statements. 

Above this you’ll see selected insights into your spending, while Pots can also be reordered and customised, giving you the choice between the “classic look” (with pictures) or a list.

You still have the Trends, Payments and Help tabs at the bottom of the screen to quickly jump between these sections. You’ll find more settings by hitting your initials (or a photo if you’ve set this up) in the top left corner.

Categorisation and notifications

When you make a payment, you receive a notification about the transaction, along with how much you’ve spent that day. The transaction is also automatically assigned to a category. With the standard account, you’re limited to a set number of categories, but they pretty much have all the ones you’d want, including groceries, shopping and bills. 

It’s easy to change the category of a transaction, and when you do, it offers to change similar past and future transactions in one go, so you don’t have to manually change several transactions in a row. 

You can also add tags and additional notes to your transactions to help sort your payments – this is particularly helpful in the joint account to better communicate a transaction. 

Budgeting features

One of the big benefits of Monzo is that it helps you budget effectively. Although, if you really want to get into the nitty gritty then you might be better off with a third-party budgeting app.

Monzo offers “Monzo Trends”, which gives you an overview of your finances in the app, both on the home screen and in a separate tab. 

Here, you can see your individual and combined balances across your different Monzo accounts and any Pots you’ve set up and track your spending and see how much you’ve paid for different categories of expenses. 

For example, it’ll show how much you’ve spent on things like transport, entertainment or groceries to name a few. It also lets you compare your spending insights month on month to highlight any changes.

You can set targets for your spending each month — this can be broken down into specific categories as well. This will then show you how much you have left to spend of your overall budget (and for each category if you’ve set specific targets for those).  

In addition, you can create up to 20 Monzo Pots. These can be used for different expenses, such as bills, food, and nights out. This is very similar to the “jam jar” or envelope budgeting method.

You’re also able to see a list of all of your regular outgoings each month including bills and subscriptions. 

Integrations

The Monzo app is secured with biometrics or a passcode. You can also be emailed a “magic link” to log in. 

You can use Monzo with a great deal of apps that let you connect your account via Open Banking, including Cheddar, Emma, Plum and Airtime Rewards.

In addition, you can use IFTTT, which we touched on earlier. This can be used for auto-savings, but there are actually a fair few different things possible with this, from ridiculous (saving money whenever you Tweet) to sensible (putting your transactions into a spreadsheet or taxing yourself when you get a takeaway). 

These are, realistically, a bit of fun, but they could help you save money in alternate ways, like doing more steps – yep, you can connect it to Fitbit. You can even connect it to your Octopus Energy account and put away money when you save on energy. 

You can pay with Apple Pay and Google Pay, as well as using a smart watch like a Fitbit or Samsung Watch.

Card controls and virtual cards

You can decide if you want a lower cap for contactless spending, set by default at £100 for single taps and £200 cumulative before you need to enter the PIN. You can also block transactions to gambling websites and services through the app.

Monzo allows you to check your PIN and debit card details, including the CVC, in the app. You can also copy these to paste elsewhere, though I find this doesn’t always work. 

If you think you’ve lost your card, you can freeze it in the app to stop payments from going through until you find it.

Virtual cards are limited to the Premium account holders. If you think you’d like an account that offers virtual cards, Starling might be a good option.

Sending and receiving money in the Monzo app

If you need to send or receive money, you have a few different options.

Firstly, you can easily share your account number and sort code via messenger, email and other apps. It preps a message for you with all the details, so you don’t have to go back and forth. 

If you’re requesting money from people, you can send them a QR code or create a unique Monzo.me link in the app for people to pay you back. You can choose the amount you’re asking for, too. You can use this to pay people, too.

If you have friends on Monzo, you can split bills and payments in the app by selecting “Split bill” from the transaction. You can find people with Monzo accounts nearby if you’ve got Bluetooth turned on, too. Great when you’ve just had dinner with your friends and don’t want to faff with entering bank details. 

If you’re regularly splitting bills with the same people, such as your partner, you can also set up a shared tab. This is similar to what Kroo offers, as it lets multiple people assign transactions and choose how to split the payments, and then it works out who owes who what when you choose to settle up.  

What happens to my Monzo account if I lose my phone?

If your phone is lost or stolen, you can freeze your account to prevent any payments or transactions from being made. You’ll just need to log into Monzo’s emergency webpage to activate the freeze. It’s a really basic version of Monzo that only allows you to see your accounts, check your balance, view recent payments from the last 90 days and freeze or unfreeze your card.

Monzo current account

As a current account, Monzo is pretty decent. It’s a good choice for using abroad, although other accounts definitely trump it, certainly for longer holidays. 

Account basics

You get Monzo’s classic hot coral card with the account, although there have been promotions that can get you another colour when you refer friends. The card is sent out for free and you can get a replacement for free if you lose it. 

In addition, you can start using the card before it even arrives by setting it up with Google Pay and Apple Pay.

You’re also able to set up or amend standing orders or direct debits directly from the app. 

To pay in cash, you need to deposit it at a PayPoint. Monzo charges a £1 fee for making the deposit. You can deposit £5 to £300 at one time, and can pay in a maximum of £1,000 every 180 days. It appears in your account within ten minutes. 

You can pay in cheques with your Monzo app, too. These previously had to be posted, but you can now pay in a cheque up to the value of £500 using your phone’s camera.  

There’s a £10,000 daily transfer limit to UK bank accounts. This is lower than most banks typically offer, with Chase offering £25,000 and Revolut letting you transfer £50,000 per day. Starling is higher than this, at £1m. 

Unlike most other banks, there’s a limit to the amount of cash you can withdraw — you can take out up to £400 every 30 days in the UK (after that a 3% fee applies). However, if you’re using Monzo as your main bank there are no limits at home or in the EU.

Can I use Monzo abroad?

Monzo is a fairly decent account to use abroad. You can spend fee-free all around the world, and if you have it as a “main account”, then there’s no cap on cash withdrawals in Europe either.

However, if not, then you can only withdraw up to £400 for free per month in EEA countries. All users are capped at £200 of withdrawals in non-EEA countries. If you go over these limits a 3% fee applies.  

This isn’t the best account on the market — Chase offers fee-free spending and withdrawals and 1% cashback on your spending. Check out our roundup of the best debit and credit cards to use abroad for more. 

Monzo account fees

Although Monzo’s standard account is free to use, the following fees may kick in for certain payments or services: 

• Cash withdrawals in the UK:  Monzo charges 3% on cash withdrawals over £400 in a 30-day period in the UK. 
• Cash withdrawals abroad: A 3% charge applies to withdrawals over £400 in EEA countries and £200 in countries outside of the EEA. 
• Cash deposits: You’ll have to pay £1 per cash deposit into your Monzo account
• Card replacements: Monzo charges £5 for card replacements unless you meet the criteria for 2 free cards per year, your card expires, is stolen or you’re the victim of fraud. 

You get free card replacements if you use Monzo as “more of a bank”. Monzo doesn’t exactly explain how they decide this, but it’s likely to be regular money in and out of the account. You’ll get two replacements per year per account. 

Monzo overdraft

Monzo offers an overdraft on its account. Depending on your credit score, this could be 19%, 29% or 39% to use it. These rates are lower than most other banks, but it’s still an expensive way to borrow and there are better options.

You can borrow up to £2,000, though Monzo chooses this based on your credit score and current borrowing. 

Monzo keeps a tally of how much your overdraft will cost you each month based on the amount you have overdrawn and for how long. This stays at the top of your account, so you can keep tabs on the cost. 

Other things you can do with the Monzo current account

Monzo has a few additional features, including a salary sorter, loans, credit cards and a teen account. Here are the details.

Salary sorter

This feature splits your salary across different pots, such as money for spending, bills and savings. It works for any sums over £100 coming into your account with one of the below payment types. You can choose your sorting settings within 72 hours of money entering the account.  

Eligible payment types include:

• Bank Transfers
• BACS
• Cash Deposits
• CHAPS
• Cheques 
• Peer to peer

Get paid early

If your salary is paid into Monzo, you can be paid the money at 4pm the day before. This is for BACS payments up to £20,000. This is simply Monzo clocking that money is due to enter your account and passing it over a day early. It isn’t considered to be borrowing, so it won’t impact your credit score.

16-17 account

Younger students aged 16-17 can apply for a Monzo account as well. The Monzo 16-17 account works in the same way as the standard one, except there are spending blocks built into the account for age-restricted things like gambling. 

Mortgage tracker

You can connect your mortgage to the Monzo app and track your payment progress, explore overpayments and get more insights. Though, how useful this will be is questionable.

Loans and credit cards

Monzo offers loans of up to £25,000 for eligible account holders. It also offers Monzo Flex, which is basically a credit card with Buy Now, Pay Later (BNPL). You can split the cost of your purchases into instalments over three, six or twelve months with this.  

Monzo rewards

Monzo’s not offered much in the rewards space during its time, but it’s slowly improving this. 

Savings rates with Monzo

To save money with Monzo, you can make use of the Pots feature to separate money from your main account. However, to earn interest on this money you’ll need to open a specific savings pot. This pays 3.6% at the moment, though there’s an account at 4.02% via Shawbrook too. Both can be beaten with other savings accounts. 

Monzo switch and referral offers

Monzo doesn’t offer any switching deals currently, though you can still switch as you would to any other bank using the Current Account Switch Service (CASS).

We have a round-up of the best bank switching deals which will tell you which providers are offering top-paying welcome bonuses, cashback and rewards if you switch to them.  

You can get £5 for you and a friend if you refer a friend.

Cashback with Monzo

Monzo launched cashback in late 2023.

You can’t earn cashback on all of your spending, as Chase offers. Instead, Monzo has a list of participating retailers, where you can earn cashback on your spending. These change fairly often, with Monzo notifying you each week of your cashback offers. At the time of writing, I can get 3% cashback at Sainsbury’s, 5% from Just Eat and 10% from Krispy Kreme. 

These need to be loaded before you can use them, and cashback will go into a separate pot, so you can keep track of what you’ve earned. We’ve written a full guide on how it works. 

How to apply for a Monzo account

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

1. Download the app: Search “Monzo’” in the App Store or Google Play, then hit download. It’s worth seeing if any friends already use Monzo as you might be able to get a £5 referral link to use when joining.
2. Personal details: You’ll fill in the first section of the application with personal details such as your name, home address, employment status and phone number.
3. ID checks: Monzo will then verify your ID by asking you to snap a picture of your ID. You can use your passport, driving licence, national ID card or biometric residency permit. Then record a selfie video. 
4. Choose your account: Once your ID is confirmed you can choose your Monzo account and card. 
5. Activate your card: You’ll need to activate your card in the Monzo app to start using it. (It usually takes a couple of days for it to arrive at your home address). 

Will there be a hard credit check when you apply?

Monzo is one of the few UK current accounts that doesn’t perform a hard search on your credit report when you apply – as long as you don’t apply for any borrowing such as an overdraft or Monzo Flex. 

This means it can be a good “dummy” current account for bank switching. Though be aware that if you switch away you’ll have to wait at least 30-days to open another – and there’s no guarantee they’ll offer you one.

Is Monzo safe?

Monzo is a fully-fledged bank and is regulated by the Financial Conduct Authority (FCA). That means that it’s legally required to treat customers fairly and protect their funds. 

Up to £85,000 of the money held in your Monzo is protected by something called the Financial Services Compensation Scheme (FSCS). 

This basically means that if Monzo goes bust, you’ll be able to get up to £85,000 money back. 

However, if you add money to some linked savings accounts (though not all), they may held with other banks. It’ll be clear who this is (if it’s not Monzo) when you open that savings pot.

Will Monzo close my account?

There are often reports of Monzo closing or freezing bank accounts – there’s even a Facebook group devoted to impacted customers. And they’re not the only bank to come under fire for this, NatWest, Barclays, Monese and Revolut have also hit headlines for bank account closures too. 

Ultimately, as with all banks, Monzo has the power to freeze, block or close your account to protect other customers. 

Some of the reasons why they might close your account include: 

• Unusual activity:  If they suspect your account is being used for criminal activity it may be blocked or closed. (This includes if their fraud systems pick up that someone else might have access to your account to protect your money from being stolen.)
• Risky customers: Any account holders that are flagged as a risk to Monzo or other customers may have their accounts closed. 
• Police instruction: Monzo will close your account if they’re asked to by the police as part of a financial crime investigation. 

We don’t think it should be something to worry about over other banks. Monzo argues they might appear to close more accounts, but that’s because their technology means they’re better equipped to spot dodgy behaviour. 

However, they won’t always get this right. So if you are affected, then contact the Financial Ombudsman.

Monzo Smart Money People rating

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

Positive reviews of Monzo’s standard current account highlighted the ease of use, app features and savings pots. 

Negative reviews of Monzo’s standard current account had issues contacting customer service and getting their queries resolved. 

How to get help with Monzo

Monzo is a completely digital bank and doesn’t have any physical branches for you to visit. So, most of the customer service is managed within the app. 

You can get in touch with Monzo’s customer services team 24/7 with urgent queries by tapping the “help” tab and starting a chat (at least you should be able to – check out the next box if it doesn’t appear for you).

Monzo also offers customer support via call between 7am and 8pm. You can call for free on 0800 802 1281 if you’re in the UK or +44 20 3872 0620 if you’re calling from abroad. 

There are some things Monzo can’t help with over the phone though. This includes sharing account information and updating your mobile number or email address registered to your account. (You can update these in the settings on your app).

Pros and cons of Monzo

Pros

• Simple to set up and use
• Lots of budgeting features and some spending insights
• Fee-free spending abroad
• Automated savings including round ups and your own scheduled savings pots
• Ability to combine with IFTTT to boost savings
• Potentially lower cost overdrafts
• FCA-regulated and FSCS protection
• No credit checks unless you apply for an overdraft

Cons

• 3% charges on cash withdrawals over the free allowance in the UK and abroad if it’s not your “main account”
• No bank branches or face-to-face customer support
• £1 fee for each cash deposit you make (and you can only deposit £1,000 every 6 months) 
• You have to pay for full functionality
• No virtual cards on the free account
• No bank switching offers 

Summary: Is Monzo any good? 

Beyond the fandom, Monzo’s standard current account is a decent all-rounder for spending and budgeting. 

The redesign is a return to a more intuitive experience, and it still offers lots of features that help you get to grips with managing your money, setting budgets and saving too.

Little things like being able to view your debit card number or PIN make paying so much simpler as well (though of course, many others offer this too).

Overall, if you’re looking for an easy way to budget and manage your everyday spending, it’s worth giving Monzo a look – as long as you’re comfortable with a fully digital banking experience.

However, we think there are better options, which we’ve listed below.

Alternatives to Monzo

For an everyday banking experience, Starling still has the edge in our opinion. Plus there are no limits on cash withdrawals and the ability to use the Post Office for cash.

Chase is also very easy to use but comes with the added bonus of 1% cashback at home and abroad. 

Alternatively, you could look at a reward based account from more established banks that have much-improved apps as well as access to high street branches (as long as they’ve not been shut down). Freebies include free Disney+ from Club Lloyds or £5 a month from Halifax Rewards. 

And, when it comes to saving, you’re probably better off automating the money you’d like to set aside to go to an account with another provider. This means that you’ll be able to take advantage of the best savings rates out there.