Monzo is a digital bank that has its headquarters in London. Monzo has had a full banking license since 2017, meaning customers can open a fully-fledged current account with them. Monzo customers’ money is protected by the Financial Services Compensation (FSCS), which means that the British Government guarantees up to £85,000.
Monzo bank offers a quick and easy sign-up process, allowing customers to open a bank account within minutes for free. To open an account, customers will need a smartphone, ID and to be over 16 years old. The process of opening an account involves downloading the Monzo app, entering information such as an email and home address, and confirming your identity with a ‘selfie video’ system – you will then be sent your Monzo card in the post. It is also possible to begin using your Monzo card immediately after signing up by adding your card to Apple Pay. As of June 2020, the Monzo metal card isn’t available and not announced yet.
Monzo bank’s current account has no monthly fees, allowing users to control their spending, savings, and bills through the app. There’s also Monzo joint account options and an account for 16-17-year-olds.
Currently, Monzo bank offers its free current account, with a premium account potentially in the works in the future. It has also been very vocal about upcoming Monzo business account options that they hope to offer soon.
The user experience with Monzo bank begins by adding funds, which is generally made simple, quick, and efficient through the app. Monzo’s unique aspect is that it makes it so easy for you to get your salary paid into your account and switch everything over from your pre-existing main account. You can also make a bank transfer using your account number and sort code, set up a standing order, or pay in cash at any UK store that supports PayPoint.
The app itself is rich with features to make your banking experience more insightful, helpful, and organized. Your outgoings are made clear by spending being categorised by type of transaction, allowing you to see how much you spend on food, retail etc. Transactions between Monzo bank accounts are free, and you can also directly request money from another user. Monzo also has a range of features to make saving easier, allowing customers to set monthly budgets and saving goals and smart saving tools that round up the amount you spend and store the excess in a savings pot with interest. The Monzo app is fast, easy to understand, and boasts an impressive modern appearance. Monzo is always making improvements to its interface and services, unlike traditional banks that have struggled to modernize.
When it comes to saving, Monzo makes it easy with its Monzo savings pots, which offer up to 1.30% interest and are fully protected up to £85,000 by the FSCS.
When it comes to loans, Monzo loans are between £7,500 to £15,000 with 3.7% APR, and 19.5% APR on loans up to £7,500. This gives Monzo a competitive edge over other UK challenger banks that fail to offer these financial services, also offering flexible repayment plans and no fees for early repayment – both of which are advantageous.
Monzo does not currently offer any inbuilt cashback options. However, their users in London are encouraged to connect their account to a cashback app called Tail, which allows customers to get cashback at a range of retailers.
Monzo is an appealing option for travelers, offering no bank fees for using your Monzo travel card abroad and free EU withdrawals. This saves on the long list of bank fees travelers will be used to seeing on their statements after a trip and allows travelers to withdraw £200 for free within 30 days of traveling.
Monzo bank is one of the best-rated challenger banks and has proven incredibly popular – with an ever-growing customer base that is currently over 3 million. The main thing that makes Monzo bank so appealing is how the app successfully makes banking more understandable and personal. The wide range of features helps customers have more power over their money and spending, and they run alongside the more traditional banking features that we have come to expect from a bank. Monzo is covering almost every base when it comes to modern banking, and if they can’t tempt you to make Monzo your main bank account, they can certainly tempt you to open an account that allows you to enjoy no fees overseas and handy saving tools.