Monzo Business Savings Account at a Glance
| Feature | Detail |
|---|---|
| Top rate | Up to 3.25% AER (variable) |
| Account type | Instant Access Savings Pot inside Monzo Business |
| Access | Instant, no notice period |
| Minimum deposit | None |
| Maximum balance | £1 million across your pots |
| FSCS protection | Up to £120,000 on Monzo’s own licence |
| Provider / licence | Monzo Bank Limited (FRN 730427) |
| Interest paid | Accrues daily, paid monthly |
| Rate checked | 5 November 2026, monzo.com |
| The rate is variable. Verified from monzo.com, 5 November 2026. | |
Our Verdict on Monzo Business Savings
If you already bank with Monzo Business, I would turn the savings pot on and not think too hard about it: idle balance earns up to 3.25% AER (variable), with instant access and FSCS cover on Monzo’s own licence. As the home for a serious reserve, though, I would look past it.
Where it falls short is the rate. Up to 3.25% sits below the 3.90% AER Cynergy pays on its business easy-access account, and it is variable, so it can move. Monzo’s own pages don’t even agree on it: the dedicated business savings page advertises up to 3.25% AER while a wider Business Features page still shows 1.30%, and neither publishes a Lite, Pro or Team breakdown. So treat the pot as a convenient home for cash you already hold in Monzo rather than a way to wring the most out of a reserve, because the larger the balance, the more interest you give up against a fixed-rate account.
Open a Monzo Business account →The pot suits you best if you already bank with Monzo and care more about keeping tax money organised than about the last fraction of a percent: spare balance earns interest without leaving the app you already run the business from.
A sole trader setting money aside for tax can keep a VAT buffer in an Instant Access Savings Pot, earning interest until the bill falls due, and on the Pro plan add a Tax Pot on top, so Monzo sets aside a slice of every payment automatically.
We rate tax money as the job the pot does best, because it has to be reachable the moment the bill falls due, and while it waits it is FSCS-protected on Monzo’s own licence.
We would look elsewhere if maximising the rate on a large reserve is the priority. You earn less here than at Cynergy, in Allica’s notice account or in a fixed bond: on £100,000 left for a year, Cynergy’s easy-access rate pays about £650 more than the pot’s advertised top rate.
Pros and Cons
Pros and cons
- Fully integrated with Monzo Business: no second app or separate application.
- Instant access with no notice period or withdrawal penalties.
- FSCS protection up to £120,000 on Monzo Bank’s own banking licence.
- The savings pot is included on every plan, free Lite included, with no fee on the pot itself.
- Open to sole traders as well as limited company directors.
- The rate (up to 3.25% AER, variable) trails Cynergy’s easy-access account and Allica’s notice and fixed accounts.
- No fixed-term bond or notice account: the pot is variable-rate only.
- Monzo’s own pages disagree on the rate (a dedicated page shows up to 3.25% AER, the Features page 1.30%).
- You must already hold a Monzo Business account to use it.
Monzo Business Savings Accounts and Rates
A balance left in the pot for a full year earns roughly the gross amounts below at up to 3.25% AER, which we calculated before tax and on the assumption that the variable rate holds. Set them against the 3.90% AER Cynergy pays on easy access, and the difference is what keeping the money in Monzo costs you: about £650 a year on £100,000.
| Balance held for a year | Gross interest at 3.25% AER |
|---|---|
| £10,000 | about £325 |
| £25,000 | about £813 |
| £50,000 | about £1,625 |
| £100,000 | about £3,250 |
| Illustrative gross interest before tax, at the up-to-3.25% AER headline rate held for a full year. The rate is variable, so real returns move with it. | |
| Source checked | Scope | Rate shown | Checked |
|---|---|---|---|
| monzo.com dedicated business savings page | Business Instant Access Savings Pot | Up to 3.25% AER (variable) | 5 Nov 2026 |
| monzo.com Business Features page | Business savings feature | 1.30% AER (variable) | 5 Nov 2026 |
| Monzo’s public Business pages currently conflict: the dedicated Business Savings page advertises up to 3.25% AER, while the wider Business Features page shows 1.30% AER. Both were checked on 5 November 2026, and neither gives a plan-by-plan breakdown. | |||
How Monzo Business Savings Works
There’s no card and no spending from the pot. It’s a savings space, so money moves by in-app transfer; your Monzo Business debit card draws on the main balance, not the pot.
Transfers and access. Moving money between your main balance and the pot is instant, in-app and free, with no notice period. This is true instant access: when you need the cash, you tap it back and spend or pay out as normal.
There’s no minimum, and you can save up to £1 million across your pots.
Overseas payments also go from your main Monzo Business account rather than from savings, so the pot’s only job is to earn interest on cash you are not using yet.
Fees, Charges and Limits
There are no transaction fees or withdrawal penalties on the pot. Moving money between your main Monzo balance and the pot is instant and free, however often you do it.
That is what makes the pot workable as a VAT buffer, because pulling the money back out costs you nothing. Move £8,000 back at four o’clock on the Friday the bill is due and it is in your main balance before the payment leaves. There is no fee on the pot itself; the only price is the monthly plan, and Monzo does not publish a savings rate that changes with it.
Does a paid plan buy a better savings rate? Monzo doesn’t publish one. The pot is free and appears on every plan, and Monzo advertises up to 3.25% AER with no Lite, Pro or Team breakdown. Its help page says you’ll “always be on our best interest rate” without saying what that rate is on each plan. So we can’t point you to a paid tier that pays more; treat the paid plans as buying features, not a promised higher rate.
| Plan | Monthly price | Instant Access Savings Pot | What the plan adds |
|---|---|---|---|
| Lite | Free | Included | Business current account and the Instant Access Savings Pot |
| Pro | £9/month | Included | Tax Pots, multi-user access and advanced tools |
| Team | From £25/month | Included | More users and higher limits |
| Monzo advertises up to 3.25% AER (variable) on its dedicated Business Savings page and does not publish a plan-by-plan rate; the pot appears on all three plans. Interest accrues daily, is paid monthly, with no minimum deposit. We read the rate, the plan prices and the interest terms on monzo.com on 5 November 2026. | |||
If you run Pro or Team, you do it for invoicing, Tax Pots or extra users, and the pot rides along.
Eligibility and Application
Who can open it. You can open the savings pot if you hold a Monzo Business account, which is open to UK sole traders and directors of registered limited companies by shares. That matters when you’re setting aside your own VAT and tax: Capital on Tap and Cynergy shut sole traders out.
Not every business qualifies. Partnerships and LLPs, limited companies by guarantee, charities, Community Interest Companies (CICs), Public Limited Companies (PLCs) and dormant companies can’t open a Monzo Business account, so the pot is closed to them too.
You won’t open the pot as a standalone product. It lives inside Monzo Business, so the current account comes first and the pot is a feature you switch on.
What you need to apply. Applying for Monzo Business is in-app: photo ID and your business details, a company number for a limited company, or your trading details as a sole trader. Monzo runs the standard identity checks.
Once the account is live, the pot opens in a couple of taps, with no separate application and no minimum deposit. The pot sits on every plan, free Lite included, so you don’t need to pay for Pro to open it; pick the plan that suits the rest of your banking.
Account Access and Management
Savings beside the rest of your banking. Because the pot sits inside Monzo Business, the app that raises and tracks your invoices and manages expenses also holds the cash you set aside, so you can watch a payment arrive and move a share of it into the pot without opening anything else.
You can run up to 20 Instant Access Savings Pots on one account, splitting a VAT buffer, a Corporation Tax buffer and a rainy-day reserve into separate spaces, up to £1 million saved in total.
Tax Pots are a different tool. On the Pro or Team plan you can add up to three Tax Pots, where Monzo automatically moves a set percentage of every payment you receive into a ring-fenced space for tax. That automation is a budgeting tool, and Monzo publishes its savings rate for the Instant Access Savings Pot only, so keep the money you want to earn interest on there.
Accounting integrations. On the Pro and Team plans, Monzo Business connects to Xero, QuickBooks, Sage and FreeAgent rather than locking you into its own ledger. Savings Pots don’t show as separate accounts, though: Monzo says FreeAgent, Sage and Xero display your total Monzo Business balance including the money held in Pots.
If your bookkeeper reconciles in Xero at month-end, that matters: the money you have set aside for VAT is folded into one Monzo figure, so it will not show as a savings line they can tick off separately. The QuickBooks Open Banking integration is narrower, and syncs transfers to and from your Pots rather than the Pot balances themselves. Either way the money stays inside the app you already reconcile, not in a standalone savings account outside your accounting software.
| Instant Access Savings Pot | Tax Pot | |
|---|---|---|
| What it does | Earns interest on spare business cash | Sets aside a percentage of income for tax automatically |
| Earns interest? | Yes, up to 3.25% AER (variable) | No rate published; Monzo sells it as a budgeting tool |
| Plans | All plans, including free Lite | Pro or Team only |
| How many | Up to 20 per account | Up to 3 per account |
| Access | Instant, no notice | Move money out when the tax is due |
| The Instant Access Savings Pot is the interest-bearing product; the Tax Pot is a separate automation. We read the rate, pot limits and plan access on monzo.com on 5 November 2026. | ||
FSCS Protection, Regulation and Security
Monzo Bank Limited is a fully licensed UK bank, authorised by the PRA and regulated by the FCA and PRA (FRN 730427). Eligible deposits, including money in your savings pot, are protected by the FSCS up to £120,000 per eligible depositor on Monzo’s own banking licence.
For a limited company, the company’s eligible deposits are protected separately from the director’s personal Monzo deposits, because they are different legal depositors. A sole trader’s business and personal Monzo deposits count together towards the one £120,000 limit, because the individual and the business are the same legal depositor.
Customer Reviews and Reputation
Read the headline score in context, because it isn’t specific to business savings. When we checked in October 2026, Monzo held around 4.6 out of 5 on Trustpilot from more than 65,000 reviews: an excellent rating, but earned mostly by its personal-banking customers.
What reviewers praise is the app: the speed, the pots, the clarity of where your money sits. Those are the same qualities the savings feature relies on, so the score tells you the app is well built, though it cannot tell you how satisfied businesses are with the pot itself.
That app quality is the part worth paying attention to here. When your tax money has to sit somewhere you’ll actually leave alone until the deadline, being able to see at a glance where it sits matters more than a fraction of a percent of rate.
Monzo Business Savings vs Alternatives
Monzo’s top rate beats Allica’s easy-access account and loses to Cynergy’s, and both of those banks pay more than the pot once you can lock the money away. Neither takes sole traders, so for a one-person business the realistic comparison is Tide.
| Account | Open to | Access | Rate | Interest on £100,000 over a year |
|---|---|---|---|---|
| Monzo Instant Access Savings Pot | Monzo Business customers, sole traders included | Instant | Up to 3.25% AER (variable) | about £3,250 |
| Allica Easy Access | Companies House registered businesses, £20,000 minimum | Instant | 3.05% AER (variable) | about £3,050 |
| Allica 95-day notice | Companies House registered businesses, £20,000 minimum | 95 days’ notice | 3.65% AER (variable) | about £3,650 |
| Cynergy Business Saver | Limited companies, LLPs and partnerships, £10,000 minimum | Easy access | 3.90% AER (variable) | about £3,900 |
| Cynergy 1-year Fixed Rate Bond | Limited companies, LLPs and partnerships | Locked for the year | 4.15% AER (fixed) | about £4,150 |
| We read every rate on 5 November 2026, and Allica’s again on 6 November 2026, on Monzo’s savings page, Allica’s savings page and Cynergy’s Business Saver and Fixed Rate Bond pages. The interest column is our calculation, before tax, and assumes each rate holds for the full year. Monzo’s line uses its advertised top rate. | ||||
Allica Bank covers the most ground if you want to move money out of the day-to-day account into a proper savings vehicle. Easy access, notice, and fixed-term accounts all sit under one relationship, and the notice account beats Monzo’s pot (3.65% AER on 95-day notice), though Allica’s easy-access rate, 3.05% AER, is lower.
Minimum is £20,000 and the business must be registered at Companies House (limited companies and LLPs), so it doesn’t suit every Monzo user, but for a limited company with £20,000 or more to set aside, it is the alternative I would look at first. Deposits there are FSCS-protected on Allica’s own banking licence.
Tide Business Savings runs a similar in-app model: the savings pot sits inside your Tide business banking app and money moves between the current account and pot without leaving the platform.
Tide pays new members 3.25% AER (variable) for four months, or up to 4.25% if they switch their account fully and move in £10,000 or more within 14 days; after that, the rate depends on the Tide plan (we read tide.co on 5 November 2026, where Tide dates these rates 4 November 2026).
Cynergy Bank offers a standalone easy-access savings account for limited companies, LLPs and partnerships with a minimum of £10,000. Sole traders are not eligible.
Its Business Saver pays 3.90% AER (variable), ahead of the pot’s advertised top rate, and the account sits independently of your business current account. That separation matters if you would rather a problem with your current account did not also freeze the money you set aside.
Is Monzo Business Savings Worth It?
The advertised ceiling is up to 3.25% AER, variable. Monzo publishes no Lite, Pro or Team breakdown, and its own pages disagree (a dedicated page shows up to 3.25% AER, a wider one 1.30%), so there’s no paid tier that promises a better return, and the pot is on free Lite too.
Pro earns its £9 a month through the tools around the pot (invoicing, integrations and automated Tax Pots) rather than through a higher savings rate, so if you already pay for it, the pot comes along at no extra cost.
For a large or growing reserve, the interest you give up against Cynergy or Allica’s notice account grows with every pound you add. Keep Monzo for operational cash and tax provisioning; park the serious reserve with a specialist savings bank.
Frequently Asked Questions
How much interest does Monzo Business savings pay?
Monzo advertises up to 3.25% AER (variable) on its dedicated Business Savings page. It publishes no Lite, Pro or Team breakdown, so we don’t assume every plan earns the maximum; the pot itself is on every plan, free Lite included. Interest accrues daily, is paid monthly, and there is no minimum deposit. One note of caution: Monzo’s own pages currently disagree, because the dedicated business savings page shows up to 3.25% AER while a wider Business Features page shows 1.30%. Even the top figure sits below the 3.90% AER Cynergy pays on easy access, so the pot is best seen as a convenient place to earn on spare cash rather than a way to maximise yield. We read all three rates on the providers’ own pages on 5 November 2026.
Is Monzo Business savings FSCS protected?
Yes. Monzo Bank Limited is a fully licensed UK bank, authorised by the PRA and regulated by the FCA and PRA (FRN 730427). Eligible deposits, including money in your savings pot, are protected by the FSCS up to £120,000 per eligible depositor on Monzo’s own banking licence. For a limited company, the company’s eligible deposits are protected separately from the director’s personal Monzo deposits, because they are different legal depositors. A sole trader’s business and personal Monzo deposits count together towards the one £120,000 limit, because the individual and the business are the same legal depositor. We read the FSCS rules on fscs.org.uk and Monzo’s own regulatory statement on 5 November 2026; our last read of FCA register data for this firm was 1 September 2026.
Is Monzo Business Pro worth it just for the savings rate?
Not for the rate. Monzo publishes no plan-by-plan savings rate, so there’s no confirmed Pro premium to buy, and the pot is on free Lite too. Pro costs £9/month and its value is in the other features: invoicing, accounting integrations, multi-user access and automated Tax Pots. Choose Pro for those. We read Monzo’s plan and savings pages on 5 November 2026.
Can sole traders open a Monzo Business savings pot?
Yes. Monzo Business is open to UK sole traders as well as directors of registered limited companies by shares, and the savings pot is available to Monzo Business customers. That matters for one-person businesses, because some business savings accounts are closed to them. Cynergy Bank business savings shut out sole traders, and Capital on Tap’s are limited companies and LLPs only. Partnerships, LLPs, charities, CICs and PLCs can’t open a Monzo Business account. We read the Monzo, Cynergy and Capital on Tap eligibility wording on 5 November 2026.
Does Monzo offer notice or fixed-term business savings?
No. Monzo lists one business savings product, the Instant Access Savings Pot, which pays up to 3.25% AER (variable) with unlimited instant withdrawals. Its business savings page lists no notice account and no fixed-term bond. (Monzo’s “Select Access” savings, with a higher rate for fewer withdrawals, sits on its personal savings pages, not its business ones.) If you can lock cash away, Allica’s 95-day notice account pays 3.65% AER and Cynergy’s 1-year bond 4.15% AER. We read the Monzo, Allica and Cynergy pages on 5 November 2026.
How We Reviewed Monzo Business Savings
What we assessed. We evaluated Monzo Business savings on the rate the pot pays, access, fees, eligibility, the surrounding tools and deposit protection, the factors that decide whether it is the right home for spare business cash.
Data sources. We last read both savings rates, plan prices, pot limits and eligibility rules on 5 November 2026, across Monzo’s business savings, Business Features, plans, eligibility and help pages. Where Monzo’s own pages disagreed on the rate, we recorded both and did not assert which is current; neither page gives a plan-by-plan breakdown. Competitor rates come from allica.bank, cynergybank.co.uk and tide.co, read the same day, and the FSCS limit from fscs.org.uk. Monzo Bank’s status (FRN 730427) comes from its own regulatory statement, read the same day, and from FCA register data we last read on 1 September 2026. No comparison sites or aggregator data.
Update cadence. We re-verify this page when Monzo changes its rates, plans or terms. The rate tables and the alternatives table give the date we last read each rate at source. BusinessExpert does not earn commission from Monzo; see our editorial policy.
Independent review. Some links on BusinessExpert are affiliate links; Monzo is not one of them, and we earn no commission from this review. It is based on Monzo’s published rates and the FCA register, as set out in the methodology above.