Monzo is an online bank founded by Gary Dolman, Jason Bates, Jonas Huckestein and Paul Rippon in 2015. It is a European bank with its headquarters in London. Initially, it was operating as a mobile bank until 2017 when it started offering deposit accounts. It is regulated by the Financial Conduct Authority (FCA).
This is Monzo online banking review and what you need to know.
How Monzo Bank Works
Monzo is an online bank that offers a wide variety of accounts like personal, joint and business accounts. You can use its current account to receive salary, withdraw cash, manage your money and set direct debits.
Monzo issues MasterCard when you open an account. You can use the card anywhere in the world. Monzo bank has two savings pots.
- Easy access savings. This saving pot earns 0.25% interest and you can withdraw money the following business day. You need a minimum of 10 euros to open one.
- Fixed-term savings. It provides 0.68% interest and you can only access the money between 3 months and 12 months after depositing. You need a minimum of 500 euros to open the pot.
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You can access Monzo banking services through an app or card. It does not have branches. The most interesting thing about Monzo is that they are very transparent. They do not just claim to be transparent, but indeed they are. If they have a system failure or a bug, they come clean about it. You can check their transparency dashboard about their system status. They always give updates when there is an issue. The only service that can compete with Monzo bank on transparency is Wise.
You can fund Monzo bank account through:
- Bank transfer
Services Offered by Monzo Bank
You can do the following if you have opened an account with Monzo Bank.
- Make direct debits
- Get paid through the account
- Open a joint business account
- Manage your money in two savings pots
- Apply for loans
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Monzo Business Account
You can open a joint business account with Monzo Bank for your business transactions. You can then link the account to an accounting software. The joint account is accessible by business directors and accountants, making it easy to manage finances. You can use the Monzo business account for:
- Free bank transfer within the UK
- Get instant notifications
- Access digital receipts and in-app invoicing
- Access Monzo savings pots
You can expect the following fees whenever you use Monzo online bank.
1. Monzo Exchange Rates
Monzo uses currency exchange rates similar to those of MasterCard. The MasterCard exchange rates are not as good as interbank exchange rates. Their exchange rates range between 0.35% and 2% and it depends on the currency being transacted.
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2. Transfer Fees
You will not be charged if you transfer money in the same currency. However, if you are transferring in a different currency, the transfer fee is 0.5 and 3 euros.
3. ATM Fees
To withdrawal money while in the UK, it is free regardless of the amount. When you are abroad, you can withdraw 200 euros free of charge, but at any amount above that, you will be charged a 3% fee.
Monzo Debit MasterCard
When you open an account with Monzo Bank, you will be issued with a prepaid MasterCard free of charge. You will need to provide a UK address to have the card through which the card will be sent. You can use the MasterCard to:
- Make purchases without fees.
- Make ATM withdrawals
- Get notifications for purchases and personalized spending.
- Live customer service chat
Monzo App Review
You can access Monzo Bank services through a mobile app that is available for Android and iOS users. Once you have the app, you can sign up using your details. You will be asked to submit a selfie video for verification. You can connect the app to Apple Pay or Google Pay. You can start using the app the same day you signed up.
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You can use Monzo mobile App for:
- Tracking your spending
- Instant notifications
- Spending abroad
- Automated savings
Monzo Customer Service
You can contact Monzo customer service through a live chat, email or a phone call. When you make a phone call, you are connected immediately, making it best suited for urgent issues. Their customer service is available 24/7.
- E-mail: [email protected]
- Phone while in the UK: 0800 802 1281
- Phone while abroad: +44 20 3872 0620
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Monzo Pros and Cons
- Access to direct debits and standing orders
- Easy to use and great user experience
- Instant money transfers to family and friends
- Impressive customer service
- It is available for the UK residents only.
- It does not have branches.
- Expensive ATM withdrawal fees of 3% for over 200 euros while abroad.
- You cannot receive international payments.