Winner of the Best Business Banking Provider award at the 2022 British Bank Awards, Monzo is a UK-based digital bank with over 8 million customers.
Monzo doesn’t have a separate business savings account, but Monzo Business Account customers can create an Instant Access Savings Pot, which can earn up to 1.6% AER interest.
So, should you use this for your business savings? Or are there better ways to save?
Monzo Business Savings Account: My Verdict
The Monzo Business Savings Account, essentially a Savings Pot within the main business current account, is an easy option if you’re looking for the convenience of unlimited access whilst growing your savings.
However, the interest rate of up to 1.6% AER isn’t as high as other business savings accounts.
Although the interest rate may not be the highest, what sets Monzo apart is its mobile banking app. The app’s easy-to-use design makes managing your account simple, especially when you’re on the move and just want to check your balance. They’re also one of the only business current accounts (other than Wise) that offer any savings functionality. Typically, businesses will need to open a new dedicated account entirely. So, on that basis, I think it’s well worth using, especially for smaller amounts of money.
If you want to invest significant amounts of savings, something like the Wise Interest for Business will give you a better return on investment.
Is Monzo Business Savings Right for You?
Pros
- All-in-One: Combine your business current account with savings, with options like overdrafts up to £2,000 and loans up to £25,000 for sole traders.
- Cost Options: Free Business Lite or the Pro account at £5/month, both with Business Instant Access Savings Pot.
- No Minimum Balance: Save up to £100,000.
- FSCS Protection: Deposits are insured up to £85,000.]
- Easy Management: Manage your account online or via a mobile app.
Cons
- Lower Interest Rate: Monzo’s Business Instant Access Savings Pot offers a 1.60% AER, lower than some other business savings accounts.
- No Physical Presence: Monzo’s lack of physical branches could be inconvenient for businesses requiring face-to-face services.
- Limited Financial Services: Monzo’s simple approach may not suffice for businesses seeking comprehensive advisory services.
- Technology Dependence: Heavy reliance on digital platforms could pose operational risks.
- Newer Market Player: Monzo, founded in 2015, lacks the long-standing reputation of traditional banks.
- Cash Deposit Limits: Monzo has limits on cash deposits to prevent financial crimes, ranging from £4 to £300 per transaction, with a six-month cap of £1,000.
Monzo Business Savings Account Features
The Monzo Business Savings Account, also called the Business Instant Access Savings Pot, is part of your Monzo Business Account, allowing you to organise your funds effectively.
You can make unlimited deposits and withdrawals from your Monzo Business Account without fees. You can also close your Savings Pot at any time.
Key features of the Monzo Business Instant Access Savings Pot:
- Unlimited Access: Withdraw or deposit funds instantly.
- Variable Interest Rate: Earn up to 1.60% AER.
- Regular Interest Payment: Interest is paid on the first day of each month.
- No Account Fees: There is no charge for the Savings Pot, but Monzo Business Account fees may apply.
- Flexible Deposits: No minimum deposit and the maximum balance is £100,000.
- Automation: Schedule regular payments for financial growth.
- Lock Option: Prevent withdrawals by locking the Pot until a specific date.
Access the Pot features with your Monzo Business Account plan, detailed in our Monzo Business Account Review.
Monzo Business Savings Account Requirements
To open a Monzo Business Savings Account, you need a Monzo Business Account. To be eligible for a Monzo Business Account, you must:
- Be a sole trader or director of a registered limited company (Ltd).
- Be based in the UK.
If you have a limited company, it must
- Be actively registered with Companies House (dormant companies are ineligible).
- Have an active, non-disqualified company director.
- Have at least one person with significant control (PSC) listed on Companies House.
- Have less than 25% of PSCs or directors being corporate entities.
- Generate most revenue from selling goods and services, not from interest or investment income.
- Be a UK tax resident only.
How Do I Open a Monzo Business Savings Account?
Before getting a Monzo Business Savings Account, open a Business Account online on the Monzo website or through the Monzo app.
To open a Business Account on the Monzo website:
- Click the ‘Business’ tab.
- Choose ‘Sign up’ or ‘Get a business account.’
- Provide your full name, date of birth, and UK home address (if you don’t have a Monzo personal account).
- Submit a government-issued photo ID, like a passport or driver’s license.
- Provide details of individuals controlling at least 25% of your business (PSCs).
- Have business address proof, registered company number or name (for limited companies), and unique tax reference number ready.
- Monzo will verify your application and inform you of any additional information needed.
- Once your account is confirmed, set it up, including opening an Instant Access Savings Pot.
To create an Instant Access Savings Pot:
- Open the Monzo app and go to the Account tab or Overview.
- Click ‘Create Pot.’
- Select ‘Instant Access Savings.’
- Name your Pot and choose an image.
- Review the terms and conditions and click ‘Agree.’
- Make your first deposit right away or return later.
Monzo Business Savings Account Fees
Creating an Instant Access Savings Pot in your Monzo Business Account is free, but there could be charges for opening a Monzo Business Account.
Savings Pots are available with both the free Monzo Business Lite Accounts and the Monzo Business Pro Account, which costs £5 each month.
Online Banking & Mobile App Experience
Monzo is a digital bank, with all account management done through its website or mobile app.
Whilst online banking through the Monzo website is basic but functional, all of Monzo’s advanced features are available on the mobile app.
The mobile app is intuitive, easy to navigate and regularly updated with innovative features.
Through both the website and mobile app, you can:
- See your account information
- Send money to people you haven’t paid before or have paid recently
- Check how much money you have in your account, including money saved in Pots
- Transfer money between Pots
- Download statements of your account activity in CSV, QIF, or PDF formats
- Create invoices and payment links to collect payments from customers
- Organise your transactions into categories and add notes to payments
- Get help from the customer service team.
Monzo Customer Support
Monzo offers excellent customer support services for its business customers.
You can contact Monzo 24/7 for emergencies such as a stolen card or fraud concerns and between 7 am and 8 pm for non-urgent questions by:
- The support chat function on the Monzo mobile app or website
- Calling 0800 802 1281 or +44 20 3872 0620 from abroad
Monzo Business Savings Account Security Measures
To safeguard your Business Savings Account, Monzo takes several measures, including:
- Two-factor authentication (2FA) for added security.
- Sending a unique login link to your email instead of using passwords.
- Automatically logging you out after 5 minutes of inactivity.
- Providing security tips upon your first online login.
- Using PIN, Touch ID, or Face ID for app login, transferring money or ordering a new card in the Monzo app.
Monzo Customer Reviews
Monzo holds a ‘great’ rating and a TrustScore of 4.1 out of 5 on Trustpilot. 78% of reviewers rate it 5 out of 5, praising its user-friendly features, clear communication, and efficient customer service.
The common language used by users to describe their experience includes “reliable”, “practical”, and “satisfied”.
However, some users are dissatisfied with account opening, fraud handling, and sudden closures. They described their experience as “poor” and “unresponsive”.
Regarding the mobile app, on the Apple App Store, it boasts an average rating of 4.6 and a 4.75 out of 5 on the Google Play Store.
Many customers described their experience using the Monzo app as “convenient”, “intuitive”, “efficient”, “simple” and “secure”.
However, there are mentions of bugs, onboarding issues, and challenges with adding Monzo to Apple Pay on multiple devices.
These users described their experience as “frustrating”, “disappointing” and “confusing”.
Alternatives to Monzo Business Savings Account
| Bank | Type of Account | Interest Rate | Min Balance | Max Balance | FSCS Covered |
| Monzo | Instant Access Savings Pot | Up to 1.6% AER | N/A | £100,000 | ✅ |
| Wise | Easy Access Investment Fund | Up to 5.11% | £1 | N/A | ✅ |
| Aldermore | Easy Access Savings | Up to 3.25% AER | £1,000 | £1,000,000 | ✅ |
| Cynergy | Easy Access Savings | Up to 3.65% AER | £1 | £10,000,000 | ✅ |
| Recognise Bank | Easy-Access Savings | Up to 3.55% AER | £1,000 or £85,001 | £250,000 | ✅ |
FAQs
Can I Have More Than One Monzo Business Savings Account?
No. You can only have one Monzo Business Instant Access Savings Pot per account you hold. If you have more than one business account, you can have one Monzo Savings Account per business.
However, you can open multiple regular Pots to separate your money from your main balance, but you won’t earn interest on this money.
How Often is Interest Paid on Monzo Business Savings Account?
You’ll earn interest on your savings on your Monzo Business Instant Access Savings Pot straight away.
Interest is calculated daily and paid into your account on the first day of every month.
If you close your Savings Pot, Monzo will immediately pay any unpaid interest into your Monzo Business account.
