Monzo Business Savings Review (2026): Rates, FSCS and Verdict

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. Full detail in the methodology.

Who Monzo Savings Is Best For

You’ll get the most from Monzo Business savings if you already bank with Monzo and value organisation over yield: the pot turns spare balance into something that earns, without you leaving the app.

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.

That is the use we rate Monzo highest for, and the money is FSCS-safe 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, Allica or in a fixed bond, and on £100,000 the gap to a specialist bank runs to hundreds of pounds a year.

Monzo Business Savings Pots

A genuine convenience play for Monzo Business users: idle balance earns up to 3.25% AER (variable) with instant access and FSCS protection on Monzo’s own licence.

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Overview Account Details Eligibility Pros & Cons Key Features

Best for: Existing Monzo Business account holders wanting to ring-fence cash for tax and VAT while earning interest inside the same app

Watch out: The rate is variable and below specialist savings banks. Monzo’s own pages currently conflict, its dedicated Business Savings page advertises up to 3.25% AER while a wider Business Features page shows 1.30% AER. No fixed-term bond or notice account.

Not ideal if: Businesses chasing the highest rate on a large reserve, or those who do not hold a Monzo Business account

Interest rateUp to 3.25% AER Variable; advertised figure, not published by plan

Interest paymentAccrues daily, paid monthly

Minimum depositNo minimum

Maximum savingsUp to £1 million

Savings pots per accountUp to 20 Instant Access Savings Pots

FSCS protection£120,000 (Monzo Bank licence, FRN 730427)

Monthly feeNone on the pot; plans do not change the rate

AccessInstant; unlimited withdrawals, no notice period

Eligible businessesMonzo Business customers: UK sole traders and directors of limited companies by shares

Application routeIn-app (Monzo Business account required first)

Eligibility: Open to Monzo Business account holders only: you must hold a Monzo Business current account to access the savings pot. Monzo Business is open to UK sole traders and directors of registered limited companies by shares, making it one of the few business savings options available to one-person businesses. Partnerships, LLPs, limited companies by guarantee, charities, CICs, PLCs and dormant companies are not eligible. No minimum deposit. Application is in-app: open a Monzo Business account first (in-app ID verification, company number for limited companies, trading details for sole traders), then enable the pot in a couple of taps. FSCS-protected up to £120,000 on Monzo Bank’s own banking licence (FRN 730427).

Not ideal if: Businesses chasing the highest rate on a large reserve, or those who do not hold a Monzo Business account

Watch out: The rate is variable and below specialist savings banks. Monzo’s own pages currently conflict, its dedicated Business Savings page advertises up to 3.25% AER while a wider Business Features page shows 1.30% AER. No fixed-term bond or notice account.

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 specialist savings banks such as Allica and Cynergy

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%), so the exact figure is not cleanly published

You must already hold a Monzo Business account to use it

Instant access to funds with no withdrawal penalties

Interest accrues daily and is paid monthly

No minimum deposit; save up to £1 million across your savings pots

Up to 20 Instant Access Savings Pots per account; connects to Xero, QuickBooks and FreeAgent

Automated Tax Pots (Pro or Team plans): set a percentage and Monzo sets a slice of income aside for tax, a separate feature from the interest-bearing pot

Monzo Savings Account 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, no separate application, 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.

Monzo Savings Account Fees and Pricing

Monthly Fees and Plan Options

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. 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.

If you run Pro or Team, you do it for invoicing, Tax Pots or extra users, and the pot rides along.

At up to 3.25% AER, gross interest on a full-year balance works out roughly as below, before tax. We use it to weigh the convenience of Monzo against the extra a specialist savings bank would pay. On £100,000 that convenience costs you a few hundred pounds a year.

Transaction Fees and Charges

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.

So when you sweep a VAT payment back out before the deadline, nothing is deducted. 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.

Monzo Savings Features and Business Banking Tools

The draw is organisation, not yield. Because the pot sits inside Monzo Business, the same app raises and tracks invoices and manages expenses, so the cash you set aside lives next to the tools that fill it.

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, and they don’t earn interest. 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: keep the money you want to earn interest on in an Instant Access Savings Pot.

Accounting integrations. 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.

Monzo Savings Card Usage and Payments

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.

The pot is sterling only, with no foreign-currency holding and no FX. Overseas payments run from your main Monzo Business account or a dedicated currency account, not from savings; the pot exists to earn interest on spare pounds, nothing more.

Monzo Savings Customer Reviews and Ratings

Read the headline score in context, because it isn’t specific to business savings. When we checked in August 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.

I think Monzo handles in-app money management better than most. When your tax money has to sit somewhere you’ll actually leave alone until the deadline, that usability matters more than a fraction of a percent of rate.

Alternatives to Monzo Business Savings

Allica Bank is the strongest alternative 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, with rates that consistently beat Monzo’s pot.

Minimum is £20,000 and limited companies only, 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. 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.

Rates are variable and change frequently. Check Tide’s current pot rate against Monzo’s before deciding which in-app option gives you more.

Cynergy Bank offers a standalone easy-access savings account for limited companies and LLPs with a minimum of £10,000. Sole traders are not eligible.

Rates at Cynergy typically run ahead of Monzo on easy-access, and the account sits independently of your business current account. We rate that separation highly if you want your savings provider entirely distinct from your day-to-day banking.

FAQs

Methodology and Disclosure