Monzo Business Bank Account 2025: Is It Right for Your Business?

Monzo, a leading UK challenger bank, is celebrated for its digital-first approach specifically designed for small businesses.

A standout feature of Monzo is its seamless integration with popular accounting software, which provides real-time financial insights—a crucial tool for tech-savvy business owners.

Having been awarded “Britain’s Best Business Banking Provider 2024,” Monzo’s commitment to excellence is clearly demonstrated. The bank’s rapidly expanding user base highlights its significant role in revolutionising business banking with innovative features and competitive pricing.

This review delves into Monzo’s offerings in detail to help you determine if it aligns with your business banking needs.

Monzo Business Lite Account

Monthly Fee

£0

Bank Transfers

£0

Taking payments by Easy Bank Transfer are free until 2025.

Card Purchases

£0

Overdraft

Yes

Eligible sole traders can apply for an overdraft of up to £2,000 with representative EAR of 39.0% (variable). Limited companies are not eligible.

FSCS Protection

Yes

Our Rating

Accessibility

Access your Monzo account via the web or mobile app

Open Account

On Monzo’s Website

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Eligibility Criteria

– You must be at least 16 years of age.
– You must be a sole trader or the director of a limited company registered with Companies House, you must be based in the UK.
– You must be a tax resident in the UK only.
– LLPs, PLCs, charities and high-risk organisations are not eligible.
– Businesses operating from outside the UK are excluded.

Monzo Business Pro Account

Monthly Fee

£5

Bank Transfers

£0

You can take payments by Easy Bank Transfer for free until 2025

Card Purchases

£0

Overdraft

Yes

Eligible sole traders can apply for an overdraft of up to £2,000 with representative EAR of 39.0% (variable).

FSCS Protection

Yes

Trustpilot Score

34,696 Reviews, average rating of 4.1/5

Accessibility

Access your Monzo account via the web or mobile app

See Deal

On Monzo’s Website

opens a new window

Eligibility Criteria

– You must be at least 16 years of age.
– You must be a sole trader or the director of a limited company registered with Companies House, you must be based in the UK.
– You must be a tax resident in the UK only.
– LLPs, PLCs, charities and high-risk organisations are not eligible.
– Businesses operating from outside the UK are excluded.

Monzo Account Review: Our Verdict

Monzo Business Account At A Glance

Feature	Detail
Monthly Costs	– Lite Plan: Free  – Pro Plan: £9/month  – Team Plan: £25/month, plus £5 per additional user after the first six
Transaction Fees	– UK bank transfers: Free  – Cash deposits: First three free monthly, £1 per additional deposit  – International payments (via Wise): Fixed and variable fees apply
FSCS Protection	Deposits protected up to £85,000
Key Features	– Integrates with Xero and QuickBooks on Pro and Team plans – Virtual cards and invoicing on Pro and Team plans – Advanced expense management and team access controls exclusive to the Team plan
Learn More	Visit Monzo

Monzo Business Bank Account Pros & Cons

Pros

• Instant Notifications: Monzo provides immediate alerts for all transactions, enabling effective financial monitoring and quick identification of any discrepancies.
• Seamless Budgeting Tools: Monzo enhances financial management with its “Pots” feature, which allows you to allocate funds for specific outgoings such as taxes or savings, thereby improving budget control.
• Integrated Accounting: Monzo effortlessly integrates with major accounting software like Xero and QuickBooks, streamlining bookkeeping by automatically syncing transactions and minimising manual data entry errors.

Cons

• Cash Deposit Limits: Monzo’s cash handling capabilities may be restrictive if your business frequently deals in cash. With deposit limits set at £300 per transaction and £3,000 monthly for sole traders (£10,000 for limited companies), you may need to consider additional banking solutions.
• Limited In-Person Services: Monzo lacks physical branches as a predominantly online bank, which could be a drawback for businesses that prefer in-person interactions or have regular cash handling needs.

Monzo Business Account Top Features

The Monzo Business Account enhances financial management for UK small businesses by streamlining operations and integrating advanced features.

Monzo sets itself apart from fintech competitors by providing a comprehensive suite of digital tools at a competitive price. While some rivals might impose higher fees for comparable functionalities, Monzo strikes an optimal balance between affordability and a robust feature set, making it a compelling choice for businesses prioritising digital-first banking solutions without the encumbrance of hidden costs often found in traditional banking.

• Accounting Integration: Monzo’s integration with leading accounting software such as Xero, Freeagent, Sage, and QuickBooks automates bookkeeping, reduces manual data entry, and enhances financial accuracy. This functionality simplifies the reconciliation process, saving time and minimising errors, making it an essential tool for efficient financial management.

• Spending Controls: Monzo’s Team plan offers robust spending controls with expense cards that set spending limits for team members, streamlining expense management. This feature automatically captures receipts and VAT details, easing administrative burdens and enhancing compliance with financial regulations.

• Tax Pots: The Tax Pots feature, available in the Pro and Team plans, automatically allocates a portion of incoming payments to a tax reserve, facilitating smoother tax liability management and preventing last-minute tax payment rushes. This proactive approach to tax management supports better financial planning and stress reduction for business owners.

• Multi-User Access: With multi-user access, the Team plan allows for efficient management of team permissions and payment approvals, maintaining centralised financial oversight while enabling necessary team transactions within set boundaries. This feature ensures businesses can control their finances while delegating tasks efficiently.

Is a Monzo Business Account Right for You?

Monzo Business Account is well-suited for UK freelancers, sole traders, and small limited companies that prioritise digital transactions. It offers seamless integration with accounting software and a mobile-first approach, enhancing its users’ convenience and efficiency.

However, businesses that frequently handle high volumes of cash transactions might find Monzo less accommodating due to its restrictive cash deposit limits.

Furthermore, industries classified as high-risk or those needing complex financial services may deem Monzo’s offerings insufficient. Additionally, businesses that depend on in-branch support or those operating internationally should consider alternative banking solutions better tailored to their needs.

Monzo Business Account Pricing

Monzo Business Account presents two distinct pricing tiers: Lite and Pro.

The Lite plan is complimentary, offering essential services such as free UK bank transfers and FSCS protection up to £85,000. However, it does not include advanced features like invoicing and integrated accounting.

Conversely, the Pro plan is priced at £9 per month (with the first month free) and encompasses these advanced features and additional benefits such as virtual cards and Tax Pots for automatic tax savings.

Monzo’s transparent pricing structure starkly contrasts with traditional banks, which often incorporate hidden fees and demand minimum balances. This straightforward, cost-effective approach is desirable to cost-conscious small businesses. Moreover, the Pro plan’s features are designed to streamline financial management processes, potentially offering substantial time and cost savings.

Fees & Charges	Amount
ATM use	£1
Direct Debit	£0
Standing Order	£0
Sending money within the UK	£0
Sending money outside the UK	Not applicable
Receiving money from outside the UK	Not applicable
Cash withdrawals in pounds in the UK	£0
Cash withdrawals in the European Economic Area (EEA)	£0
Cash withdrawals in non-EEA countries	First £200 in a 30-day period free, 3% after that
Cash deposit	£1 per deposit
Debit card payment in pounds	£0
Debit card payment in foreign currency	£0
Arranged overdraft	Monzo doesn’t currently offer arranged overdrafts
Unarranged overdraft	Monzo won’t charge you for being in an unarranged overdraft

Ease of Use

Monzo’s business banking is meticulously designed for simplicity, catering specifically to the needs of busy entrepreneurs. The mobile app is particularly notable for its user-friendliness, featuring real-time notifications and smooth navigation that streamline financial management tasks. The account setup process is exceptionally streamlined, enabling registration to be completed entirely online or via the app, facilitating a quick, hassle-free initiation.

While offering all necessary functionalities, the website dashboard is essentially a streamlined version of the mobile app, highlighting Monzo’s mobile-first strategy. This approach is ideal for on-the-go banking but may not fully meet the needs of desktop users who require more comprehensive features.

Monzo’s support system is robust, with multiple channels available to ensure that assistance is always available. The in-app chat service is particularly renowned for its swift and effective responses. Additionally, phone and email support are readily accessible, providing further avenues for help. This strong support framework significantly enhances the user experience, especially for entrepreneurs who value efficiency and accessibility in their banking solutions.

How Secure is the Monzo Business Account?

Monzo Business Account prioritises security with comprehensive measures that align with its status as a fully licensed UK bank. It adheres to stringent standards set by the Financial Conduct Authority and the Prudential Regulation Authority. Additionally, the Financial Services Compensation Scheme protects deposits up to £85,000, offering significant assurance to account holders.

Key safety features include:

• Data Encryption: Monzo rigorously encrypts all personal and financial data to prevent unauthorised access.
  
• Fraud Prevention: The bank employs sophisticated fraud detection systems and provides real-time transaction alerts to preempt fraudulent activities.
  
• Account Protection: Monzo’s call verification process helps shield against phishing scams, enhancing overall account security.

These robust safety protocols demonstrate Monzo’s dedication to maintaining a secure banking environment for its business customers.

How Does Monzo Business Handle Customer Service & Support?

Monzo Business Account excels in customer service, offering multiple channels to ensure efficient and timely support. Here’s what you can expect:

• 24/7 In-App Chat: The app offers real-time support, allowing for immediate assistance at any hour, ideal for resolving urgent issues swiftly.
  
• Phone and Email Support: Monzo provides reliable phone and email options for those who prefer traditional methods, enhancing the flexibility of support.
  
• Response Times: Monzo’s response times are notably quick, with urgent queries typically addressed within five minutes and non-urgent issues within an hour, ensuring that business operations are minimally disrupted.

Monzo’s customer service is distinguished by its accessibility and rapid response times, making it a strong contender among digital banks, particularly for businesses requiring prompt resolutions. This level of support is crucial for maintaining operational efficiency and customer satisfaction, positioning Monzo as a top choice for UK-based companies looking for a dependable banking partner.

Monzo Business Customer Reviews

Monzo’s Business Account maintains a commendable 70% positive rating on Trustpilot, earning praise for its user-friendly mobile app and efficient customer service. Many users highlight the account’s intuitive interface and real-time notifications, greatly facilitating financial management.

Conversely, 20% of the reviews are negative, predominantly concerning account freezes and slow customer support response times during complex issues. There are notable reports of delays in resolving disputes or chargebacks, a critical aspect for businesses that rely on swift financial transactions. These issues are pivotal for potential customers evaluating Monzo’s suitability for business needs.

Who Can Open a Monzo Business Account?

Opening a Monzo Business Account requires meeting specific criteria, tailored to UK-based sole traders and directors of limited companies by shares (Ltd). Here’s a detailed breakdown of the key eligibility requirements and necessary documentation:

Eligibility Criteria

• UK Residency: Applicants must be UK residents.
  
• Age Requirement: Applicants need to be at least 16 years old.
  
• Business Type: Eligible applicants include sole traders or directors of an active limited company registered with Companies House.
  
• Company Status: The company must actively trade, as dormant companies are ineligible.
  
• Control: There should be at least one person with significant control over the company, as per Companies House records.

Who Can’t Open a Monzo Business Account?

• Partnerships: The account is unavailable to partnerships, including Limited Liability Partnerships (LLPs).
  
• Excluded Entities: It also excludes limited companies by guarantee, charities, Community Interest Companies (CICs), Public Limited Companies (PLCs), and other entities such as clubs, trusts, funds, Industrial and Provident Societies (IPS), and Registered Charities (RCs).
  
• Business Activities: Businesses primarily generating income from interest or investments are ineligible.

How to Apply for a Monzo Business Account: Step-by-Step

1. Download the Monzo App: Download the Monzo app from the Apple App Store or Google Play Store. This app is crucial for managing your account and facilitating the application process.
   
2. Create a Personal Account: You need to set up a personal Monzo account before you can apply for a business account.
   
3. Start the Business Account Application: Navigate to the business banking section within the app and select “Apply for a Business Account.” Follow the on-screen instructions to continue.
   
4. Provide Identification: You must upload a valid form of identification, such as a passport or driving license, along with any necessary business documentation to comply with regulatory requirements.
   
5. Submit Business Details: Carefully enter your business’s name, address, and registration details. Accuracy is key to avoiding delays in the processing of your application.
   
6. Verification Process: Monzo will review your application and verify your personal and business information through standard verification checks.
   
7. Await Approval: The approval process is typically swift, often completed within the same day. You will receive a notification once your account is activated and ready for use.

What Documentation is Required to Open a Monzo Business Account?

• Identity Verification: Applicants need to verify their identity and business details before applying.
• Physical Presence: Applicants must be physically present in the UK during the application process; using VPNs is prohibited.

Monzo vs Competitors: Which Business Account is Best for You?

Monzo’s Business Account stands out with its user-centric app and competitive pricing, yet it competes with major players like Starling, Tide, and Revolut. Each of these banks offers unique features that cater to diverse business needs.

Feature	Monzo	Starling	Tide	Revolut
Monthly Fee	£0 or £9	£0	£0 to £69.99 + VAT	£10 – £90+
Free UK Transfers	Yes	Yes	Yes	Yes
Accounting Integration	Pro Plan Only	Yes	Limited	Paid Plans Only
Credit Facilities	Yes	Yes	Limited	Yes
Learn More	Visit Monzo	Visit Starling	Visit Tide	Visit Revolut

Pricing and Fee Structures

• Monzo: It offers a free Lite plan featuring essential banking services; its Pro plan, priced at £9 per month, includes comprehensive invoicing and accounting integrations.
• Starling: Charges no monthly fees and includes complimentary UK transfers and cash deposits up to £1,000 monthly.
• Tide: Tide has a range of accounts to suit all budgets, from the Free account with basic features to the Max account, available for £69.99 monthly, which comes with advanced expense management tools.
• Revolut: The basic plan begins at £10 per month and increases to £90+ per month for the Scale plan, increasing your fee-free transactions and interest rates on savings.

App Usability

• Monzo: Boasts an intuitive mobile app with instant notifications and efficient budgeting tools.
• Starling: Renowned for its robust app that seamlessly integrates accounting functions and offers detailed spending insights.
• Tide: Known for its simplicity, featuring a quick setup process and an easy-to-use interface.
• Revolut: Provides a versatile app with features such as multi-currency accounts and sophisticated analytics.

Credit Facilities

• Monzo: Available loans and overdrafts for eligible sole traders enhance its financial flexibility.
• Starling: Offers adaptable overdrafts and loans, tailored to meet specific business requirements.
• Tide: Credit options were recently introduced, though they are somewhat more restricted than their competitors.
• Revolut: Facilitates business loans through partnerships, with availability subject to variation.

Monzo Business Account FAQs