Monzo launched in 2015 as a prepaid card and became the bank that introduced millions of UK consumers to smartphone banking. In 2026, it has over 10 million UK customers and is now a full bank with savings, personal loans, and business accounts.
But is it still the best app bank — or have competitors caught up? This page is part of the Monzo Bank UK complete guide, which covers all Monzo products, limits, and features in depth.
What Is Monzo?
Monzo is a UK-licensed bank that operates entirely through its smartphone app. There are no physical branches. It offers:
- Personal current accounts (free and paid plans)
- Business current accounts
- Instant Access savings pots (powered by partner banks)
- Fixed-term savings pots
- Personal loans
- Joint accounts
- Under-18s account (Monzo 16–17)
Account Options
Free Account
The free Monzo current account includes:
- UK current account with sort code and account number
- Visa debit card (coral pink or other colours)
- Instant spending notifications
- Bill splitting and payment requests
- Spending analysis and categories
- Round-ups (round purchases up to nearest £1 into a savings pot)
- £400 fee-free UK/EEA ATM withdrawals every rolling 30 days (unlimited if Monzo is your main bank account), then 3%
- No overseas transaction fees on standard spending
- Instant Access Savings Pots via partner banks — confirm the current AER in the app rather than relying on a fixed figure, as rates change
- No monthly fee
Monzo’s Current Paid Plans (September 2026)
Monzo now sells three plans to new customers — Extra (£3/month), Perks (£9/month), and Max (from £19/month, £23/month for Max Family). Broadly, each level adds:
- A higher interest rate on Pot balances (exact AER varies by plan and changes over time)
- Unlimited UK/EEA ATM withdrawals and a larger non-EEA allowance
- Perks and Max add partner discounts (e.g. Railcard, retailer offers)
- Max adds worldwide travel insurance, phone insurance, and airport lounge access
Legacy Plus and Premium: Monzo’s older Plus (£5/month) and Premium (£15/month) plans have been closed to new customers since April 2024. Existing subscribers keep their benefits, but both are rising to £6/month and £17/month respectively from 14 October 2026.
For a detailed side-by-side analysis of Monzo’s plans, including the legacy ones, see Monzo Plus vs Premium — Is It Worth It?.
Monzo Flex (Buy Now, Pay Later)
Monzo Flex allows you to split eligible purchases into instalments, either interest-free over a short period or at a longer-term APR set at checkout. Confirm current minimum/maximum purchase amounts and APR in the app, as these terms can change.
Interest Rates (September 2026)
Monzo’s interest rates on Pots vary by account plan and change over time with the Bank of England base rate and Monzo’s own pricing — always check the current AER shown in the app before making a decision, rather than relying on a fixed number from any article, including this one. As a general pattern, Monzo’s paid plans pay progressively higher Pot interest as you move from free through Extra, Perks, and Max, with fixed-term (Locked) Pots typically paying more than Instant Access Pots for the same plan.
Fees to Know
| Action | Cost |
|---|---|
| Monthly fee (free account) | £0 |
| UK bank transfer | Free |
| UK/EEA ATM (free account) | Free up to £400/30 days, then 3% (unlimited if main bank) |
| Foreign spending (free account) | 0% — Mastercard exchange rate, no markup |
| Cash deposit (Post Office or PayPoint) | £1 per deposit |
| Replacement card (standard, main bank customer) | First 2/year free, then £5 |
For the full schedule of Monzo charges across all account plans and transactions, see Monzo Fees 2026. For ATM-specific limits and worked examples, see Monzo ATM Withdrawal Limit 2026.
Mobile App: Best-in-Class
Monzo’s app remains among the best in UK banking. Key features:
- Instant notifications: Push notification for every transaction, typically within a few seconds
- Card controls: Freeze/unfreeze immediately; online payments frozen by default; can disable contactless, ATM withdrawals, etc.
- Pots: Create sub-accounts for different goals. Pots can earn interest, round-up spare change, or lock savings until a date
- Bill splitting: Split bills with other Monzo users instantly; request payments via link
- Summary tab: Spending breakdown by category (eating out, shopping, bills, etc.) with budget setting
- Salary sorter: Automatically allocate proportions of each pay to bills, savings, spending
App store ratings change regularly — check the current rating on the App Store or Google Play rather than relying on a figure quoted here.
Customer Service
Monzo offers:
- In-app chat (available 24/7 — response time varies, typically fastest during UK business hours)
- An emergency phone line for lost/stolen cards and confirmed fraud
- No branches
Customer service ratings are generally good. Common complaints:
- Occasional slower response during peak periods
- Account restrictions/freezes (fraud prevention can lock accounts without immediate explanation)
- Limited support for complex queries compared to high-street banks
Who Is Monzo Best For?
| Profile | Verdict |
|---|---|
| Smartphone-native users who want real-time money visibility | Excellent |
| Travellers wanting low foreign fees (Max) | Excellent |
| Budgeters wanting pots and spending analysis tools | Excellent |
| People who want branch access | Poor — no branches |
| Those needing complex financial products (mortgages, investments) | Limited — not full-service |
| Business owners who want a simple current account | Good (Monzo Business) |
| People with large salary wanting meaningful current-account interest | Limited — Monzo pays interest on Pots, not the current account balance, on most plans |
Monzo vs Alternatives
| Feature | Monzo (Max) | Starling | Chase UK | First Direct |
|---|---|---|---|---|
| Monthly fee | From £19 | £0 | £0 | £0 |
| Interest on current account | Pots only — confirm current AER | 0% | 5% AER (confirm current rate) | 0% |
| Travel insurance included | Yes | No | No | No |
| Phone insurance | Yes | No | No | No |
| UK ATM fee | None (unlimited) | None | None | None |
| Foreign ATM fee | None (with Max) | None | Confirm current rate | None |
| Branches | None | None | None | None |
Pros and Cons
Pros:
- Best-in-class mobile app and UX
- Instant notifications and granular card controls
- Savings pots at rates that are competitive when checked against the market
- No fees on free account for basic use
- Full UK bank licence, FSCS-protected up to £120,000
- Strong budgeting tools (pots, round-ups, salary sorter)
- Max plan includes genuine insurance value
Cons:
- Free account’s UK/EEA ATM allowance (£400/30 days) is capped unless Monzo is your main bank account
- Current account itself doesn’t pay interest — interest is on Pots, and rates vary by plan
- Plus and Premium, the previous mid/top-tier plans, are closed to new customers — new sign-ups must choose Extra, Perks, or Max
- No mortgage or investment products
- No physical branches for cash or complex queries
- Some users have experienced account freezes from fraud prevention systems
- Customer service via chat only for most issues
Overall Verdict
Monzo remains one of the strongest options for day-to-day digital banking in the UK. The free account is excellent for most people — a well-regarded app, strong spending insights, and granular card controls.
For regular travellers, Monzo Max (from £19/month) is worth comparing against standalone travel insurance costs. Note that Plus and Premium — Monzo’s previous mid- and top-tier plans — are legacy products closed to new customers since April 2024, so anyone signing up today should compare Extra, Perks, and Max on monzo.com directly rather than assuming Plus/Premium pricing applies.
Rating: 4.5/5
Best for: Daily spending account, budgeters, travellers, anyone who banks primarily on their phone.
Consider also: Starling Bank Review 2026 for a fee-free alternative with no foreign ATM fees, or Monzo vs Starling vs Revolut for a full three-way comparison.