Monzo Review

Monzo has established itself as an innovative digital banking solution with multi-currency capabilities and challenged traditional banking models with its user-friendly approach. Known for its distinctive coral-colored cards and intuitive mobile app, Monzo appeals to a wide range of customers from business travelers to digital nomads. Its appeal derives from combining the security of a regulated bank with modern fintech flexibility.

Since launch, Monzo has evolved to meet the changing needs of global customers, expanding its feature set while maintaining its core focus on user experience and transparency. Is Monzo the best option for managing multiple currencies? Let’s take a deep dive into its features, fees, pros, and cons to help you decide if it’s the right banking solution for your international financial needs.

In partnership with DNworld

Overview: What Is Monzo?

History & Background

Founded in 2015 in the United Kingdom as Mondo (later rebranded to Monzo), it began as one of the first app-based “challenger banks.” The company received its full UK banking license in 2017 and now serves millions of customers primarily in the UK with growing international operations. Led by CEO TS Anil, Monzo has secured significant venture capital funding to fuel its ongoing innovation in digital banking.

Core Features

Unlike traditional banks, Monzo operates without physical branches and delivers all of its services through its mobile app. This digital-first approach allows for real-time notifications, spending categorization, instant payments, and seamless currency management without traditional banking overhead costs. Monzo pioneered features like bill splitting and customized spending categories that many competitors have since emulated.

How It Works

Users open an account through the app, receive a physical debit card, and can immediately begin sending, receiving, and converting money. The app serves as the control center for managing multiple currencies, payments, and spending tracking. The process is designed to be intuitive, with emphasis on transparency and user control over financial management.

Who It’s For

Monzo is best suited for UK residents looking for modern banking solutions, frequent travelers, digital nomads, and those regularly dealing with multiple currencies. Its transparent fee structure appeals particularly to younger, tech-oriented customers who value convenience and clarity in their financial services. Small business owners can also benefit from Monzo’s business accounts with similar features tailored to commercial needs.

Key Features of Monzo

Multi-Currency Support

Monzo primarily operates with GBP accounts but offers competitive foreign currency transactions with its Plus and Premium accounts. While not a true multi-currency account like some competitors, it provides fee-free spending abroad in most scenarios. The app automatically converts transactions to your home currency, while showing the original amount, and gives users clear visibility into their spending while traveling.

Exchange Rates & Fees

Monzo uses the Mastercard exchange rate for foreign transactions, which comes close to the mid-market rate. Standard accounts offer fee-free spending abroad but have ATM withdrawal limits, while upgraded accounts offer enhanced foreign exchange features. The transparency of these rates gives users confidence when spending internationally, as they can see the exact exchange rate applied to each transaction.

International Transfers

For international transfers, Monzo has integrated with Wise to provide faster and cheaper international transfers to over 30 countries. Most transfers complete within 1-2 business days, with rates typically 3-5 times cheaper than traditional banks. This partnership allows Monzo to offer competitive international transfer rates while focusing on its core banking experience.

Account Management

Monzo’s mobile app is widely praised for its intuitive design and user experience. The interface allows for easy navigation, spending categorization, budgeting tools, and currency management. Customer support is available through in-app chat, with Premium accounts getting priority service. The app also offers features like “pots” for savings goals, shared tabs for group expenses, and detailed spending analytics.

Security & Regulation

As a fully licensed UK bank, Monzo is regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Deposits up to £85,000 are protected under the Financial Services Compensation Scheme. The app features advanced security measures including biometric authentication, instant card freezing, and location-based security checks. Monzo also employs fraud detection systems and provides security notifications when unusual account activity is detected.

Fees & Costs

Account Fees

Monzo offers a tiered account structure:

Monzo Basic: Free with no monthly fees, providing essential banking services
Monzo Extra: £3 monthly fee with enhanced features including virtual cards and advanced budgeting tools
Monzo Perks: £7 monthly fee with comprehensive benefits including fee-free cash deposits, discounted investment fees, an annual railcard, and bold coral debit cards
Monzo Max: £17 monthly fee with comprehensive benefits including fee-free cash deposits, discounted investment fees, an annual railcard, worldwide travel insurance, phone insurance, and burnt coral debit cards

Each tier builds upon the previous one, offering additional features that may justify the cost depending on your banking needs and lifestyle.

Currency Conversion Fees

Standard accounts charge no fees for foreign currency spending and use the Mastercard exchange rate. There’s a 3% fee for foreign currency ATM withdrawals above £200 per month. Perks and Max accounts have higher free withdrawal limits (£600). For frequent travelers, these higher limits can offer significant savings over time.

Withdrawal & Deposit Fees

Cash deposits through PayPoint locations cost £1 per deposit. UK ATM withdrawals are free, while international ATM withdrawals have limits before fees apply. Domestic bank transfers are free, and international transfers have competitive rates through Wise. Perks and Max account holders benefit from higher withdrawal limits, which can result in substantial savings for frequent international travelers.

Transaction Fees

Monzo doesn’t charge fees for standard transactions like card payments or direct debits. Transfers between Monzo accounts are instant and free. The bank also provides features like round-up savings and recurring payment management without additional charges.

Hidden Costs

While Monzo is generally transparent about fees, users should be aware that exchange rates fluctuate, and Mastercard rates include a small markup compared to the true mid-market rate. Third-party ATM providers may charge their own fees, especially in certain countries. Some advanced features like extended transaction history are only available on paid tiers.

Pros & Cons

Pros

Excellent mobile app with intuitive interface and budgeting tools
No fees for foreign currency card spending
Real-time notifications for all transactions
FSCS protected (up to £85,000)
Seamless integration with Apple Pay and Google Pay
Transparent fee structure with minimal hidden costs
Premium accounts offer additional benefits like travel insurance
Advanced spending analytics and categorization
Innovative features like bill splitting and savings pots

Cons

Not a true multi-currency account (primarily GBP-based)
Limited availability outside the UK
Cash deposit options are limited and incur fees
ATM withdrawal limits apply before fees kick in
Customer service can be slower for basic account holders
Some advanced features require paid subscription tiers
No physical branches for those who prefer face-to-face banking

How to Open an Account

Opening a Monzo account is straightforward and entirely digital:

Download the Monzo app from the App Store or Google Play
Provide your email address and phone number
Create a PIN and verify your identity by submitting a valid government ID
Record a short video verification for additional security
Provide your residential address
Wait for your physical Monzo card to arrive (typically within 3-5 business days)

The verification process is usually completed within minutes, and you’ll have immediate access to a digital account while waiting for your physical card. The streamlined onboarding process is part of what makes Monzo appealing to users seeking a hassle-free banking experience.

Who Should Use Monzo?

Monzo is ideal for UK residents who want a modern banking experience with excellent budgeting tools and convenient foreign currency spending. It’s particularly well-suited for:

Frequent travelers who need fee-free foreign spending
Budget-conscious individuals who appreciate spending insights
Tech-savvy users who prefer managing finances through mobile apps
Those who make occasional international transfers
UK residents seeking a primary or secondary bank account with modern features
Young professionals and students who value financial clarity and control
Small business owners looking for streamlined business banking solutions

If you regularly travel between the UK and other countries and need to spend in multiple currencies without excessive fees, Monzo provides an excellent solution. Those who struggle with budgeting will particularly appreciate the built-in tools that make financial management more accessible.

Competitor Comparison

When compared to similar services, Monzo has distinct advantages and limitations:

Monzo vs. Wise: While Monzo partners with Wise for international transfers, Wise offers true multi-currency accounts with local account details in multiple countries. Wise typically has better exchange rates but lacks Monzo’s comprehensive banking features and budgeting tools. Wise excels for international money management, while Monzo provides a more complete banking solution.

Monzo vs. Revolut: Revolut offers more currencies and cryptocurrency trading options, but Monzo provides FSCS protection as a fully licensed bank. Revolut often has more competitive exchange rates during weekdays but charges weekend fees, while Monzo maintains consistent rates throughout the week. Revolut tends to appeal more to cryptocurrency enthusiasts and super-frequent travelers.

Monzo vs. Starling Bank: Both are UK challenger banks with similar features, but Starling offers unlimited free foreign ATM withdrawals compared to Monzo’s tiered limits. However, Monzo typically has more innovative budgeting features and a more user-friendly interface. Starling may be better for heavy cash users, while Monzo excels in digital payments.

Monzo vs. Traditional Banks: Traditional banks typically offer more comprehensive services like mortgages and investment options but can’t match Monzo’s user experience, instant notifications, or fee-free foreign spending. While traditional banks provide face-to-face service, their digital offerings typically lag behind Monzo’s innovative features.

Conclusion: Is Monzo Worth It?

The final verdict: If you value a seamless digital banking experience with strong budgeting tools and convenient foreign currency spending, Monzo is an excellent choice. However, if your primary need is managing multiple currencies simultaneously or making frequent large international transfers, you might want to compare options with specialized providers like Wise or Revolut. For most UK users, especially those who prefer digital banks, Monzo represents an impressive balance of features, convenience, and value.

Thinking of signing up? Visit Monzo’s website to explore their tiered account options and compare with alternatives before making your decision. Consider your specific banking needs, travel frequency, and how much you value budgeting tools when determining which account level best suits your lifestyle.