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Monzo business account: at a glance
Monzo is a relatively new contender on the banking scene having been founded in 2015 as a digital-only provider. Its business accounts are currently available to sole traders and limited companies.
Today, Monzo offers two versions of its business account. Monzo Business Lite is a free account with everyday banking facilities, while Monzo Business Pro is a paid account with a more extensive list of features.
Find out more about Monzo business accounts, including the benefits and features that might suit you.
Promotions
Monzo Lite Business Account
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer FeesFree
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Offern/a
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Trustpilot Score4.3 out of 525,752 reviews
Learn more about how we bring you our review.
Monzo business account pros & cons
Pros
- There is a free business account available (Monzo Business Lite).
- Accounts can be accessed online or via Monzo’s mobile app.
- Your eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).
- You may be able to get access to online banking on the same day as you apply.
Cons
- It is not possible to manage the account over the phone or at a branch.
- You can’t receive international payments into a Monzo account.
- Business accounts are not available to charities or partnerships.
These pros and cons are based on a survey of UK business owners on what they found important when selecting a range of business products, conducted by NerdWallet in December 2022.
Monzo business account key features
- Monzo is a digital bank regulated by the Financial Conduct Authority (FCA)
- It offers business bank accounts and, if eligible, deposits may be protected by the Financial Services Compensation Scheme (FSCS) up to £85,000
- There is a choice between a free and a paid business current account
- Loans may be available to limited companies through Funding Xchange
Monzo business account full review
Monzo’s mission is to offer its customers a fair and transparent alternative to traditional banking. In 2020, it launched its first business banking service, which allows users to sign up, make UK bank transfers, and manage their finances, all from their mobile phone.
We’ve gathered everything you might want to know about Monzo’s business account offering below.
| Monthly fee | Free (Monzo Business Lite) £5 (Monzo Business Pro) |
| Transaction fees | Yes (only for cash deposits, plus some ATM withdrawals outside the EEA) |
| Account management | Via a mobile app Online |
| FSCS protection | Yes |
| Potential for same day set up | Yes |
| Cash deposits | Yes |
| Cheque deposits | Yes |
| Access to other banking services, such as business loans | Yes (loans possible via Funding Xchange, for limited companies) |
| Integration with accounting software and tools | Yes |
| International payments | Yes (outbound only) |
| Customer service | 24/7, via a mobile app Email: [email protected] Telephone: 0808 169 9456 |
| Multiple user access | Yes (with Monzo Business Pro) |
| Trustpilot rating | 4.4 out of 5 (as of 6 March 2023) |
Monzo business account features
The following sections provide some important information about the key features of Monzo business accounts.
Business account fees
By far the most important factor for business owners when comparing business accounts is the monthly price, according to half of those surveyed by NerdWallet, who chose it as one of their top three criteria.
Monzo Business currently offers two types of business accounts: Monzo Business Lite and Monzo Business Pro.
- Monzo Business Lite is a full UK business current account that is available for no monthly fee. It comes with a range of features, including free UK bank transfers, payment links, and a business debit card.
- Monzo Business Pro offers a wide range of additional features, including accounting integrations, virtual cards and multi-user access, for a monthly fee of £5.
Monzo Business Lite
With a Monzo Business Lite current account, you can manage your business’s money and do your everyday banking without having to pay a monthly fee.
Additionally, there are no fees for day-to-day transactions, such as UK bank transfers, scheduled payments or using your card abroad.
Monzo Business Pro
A Monzo Business Pro account offers the same everyday banking facilities as a Lite account, with additional features, such as:
- Tax Pots, where you can set aside a fixed amount of each payment you receive to save for your tax bill
- integration with accounting software, such as Xero, QuickBooks and FreeAgent
- account access for up to two other users
- invoicing on the app
- Xero accounting software, free for six months (for new Xero customers)
- virtual cards
- auto-exporting of transactions
Additional fees
There are currently additional fees to consider when looking at a Monzo business account, whether it’s a Pro or Lite account.
| Paying in cash | £1 per PayPoint transaction |
| Cash withdrawals in a country outside the European Economic Area (EEA) | 3% of the transaction value (First £200 withdrawn each 30 days is not subject to a fee) |
| Outbound international payments | Fees vary by transaction amount |
Easy account access
According to NerdWallet’s survey of business owners, ease of access is the second most important criteria when looking at business accounts.
You can access a Monzo business account 24 hours a day, seven days a week via the provider’s mobile app or on its website. This may appeal to tech-savvy business owners who wish to manage their business current account solely online.
Monzo is a digital bank, so it does not have a high street presence. If you would prefer to access your account at a branch, this might not be the best option for your business.
Account set-up
A quarter of the business owners that NerdWallet surveyed said that the ability to set up an account quickly was one of the most important criteria when looking for a business account.
According to Monzo, 79% of business customers can get an account the same day they apply, provided that Monzo has received all the required information and documents. Customers usually get access to internet banking the same day their account is opened, with a debit card following within four days.
FSCS protection
The third most important criteria for business owners searching for a business current account, according to our NerdWallet survey, is that deposits are protected by the Financial Services Compensation Scheme (FSCS).
Monzo is a fully authorised UK bank, which means its customers may be protected by FSCS. If you are eligible, your deposits will be protected up to £85,000 and will be reimbursed automatically if Monzo were to fail. The bank is also regulated by the Financial Conduct Authority (FCA).
The limit applies across all accounts you hold with a given bank (or banks, if they share a banking licence). So if you are a sole trader who has a personal current account and a business account with Monzo, you would be protected up to a total of £85,000 across both of these accounts.
However, if you run a limited company you may get two limits: one for your business account and one for your personal account. This is because your business is a separate legal entity from you, with its own limit and protection.
The rules around deposit limits apply to all FSCS-protected banks, not just Monzo. For more information, you can look at the FSCS website.
Mobile phone app
The ability to manage money on mobile is important to the business owners NerdWallet surveyed, with an easy to use phone app ranked fourth out of a total of 12 business account criteria.
Monzo has an app where business owners can manage their business current account, make transfers and contact customer service. It’s accessible 24 hours a day, seven days a week and is available on both Android and Apple devices.
Customer service
You can contact Monzo’s customer service team in the following ways:
- By telephone, using 0808 169 9456
- By in-app live chat, 24 hours a day, seven days a week
- By email using [email protected]
You can contact Monzo about general queries over the phone, but for account-specific queries or requests you have to contact a customer service agent via the app. Additionally, as it is a digital bank, Monzo does not provide face-to-face support through branches.
Monzo provides customer service every day of the week through its in-app live chat. You can speak to someone from 7am-8pm every day, though if you have an urgent query there is 24/7 help available.
You can also contact a customer service agent over the phone from 7am-8pm every day if you have general queries about how to use your account. 24/7 phone help is available if you’re reporting fraud or if you have another urgent request.
That said, 24/7 customer service and support does not seem particularly important for business owners when choosing a business account according to our survey, ranking joint ninth alongside international banking facilities.
Customer reviews
Monzo’s customers have left reviews on a range of review sites. Generally, these reviews are positive.
It’s worth remembering that these reviews are from all Monzo customers, not just business banking customers.
- App Store: 4.9 out of 5, based on over 136,000 reviews
- Google Play: 4.3 out of 5, based on over 102,000 reviews
- Trustpilot: 4.4 out of 5, based on over 25,000 reviews
This information is correct as of 6 March 2023.
Monzo business account eligibility
To be eligible for a Monzo business account, you must be:
- a sole trader or registered limited company
- based in the UK
If you run a limited company, it must:
- be active on Companies House
- have one active company director listed on Companies House
- have at least one person of significant control listed on Companies House
- make the majority of your income from selling goods and/or providing services
- be a tax resident in only the UK
Monzo does not support some business types, such as partnerships (including limited liability partnerships) and charities.
There are also higher risk industries that Monzo does not accept, such as weaponry, gambling and construction. You can find a full list of unsupported industries and business structures here.
How to choose a Monzo business account
There are a number of questions that you can consider when deciding whether to open a Monzo business account or when comparing other providers:
- Do you want your business account to come with a monthly fee, or would you prefer to pay per transaction?
- Would you like to manage your account online, via an app, in a branch or over the phone?
- Do you prefer to bank digitally or would you like the option of face-to-face banking in a branch?
- Are you willing for you and your business to undergo a credit check as part of your business banking application?
- Do you want your deposits to be protected by the Financial Services Compensation Scheme (FSCS)?
How to apply for a Monzo business account
To apply for a Monzo business account, you need to take the following steps:
- Apply via the Monzo app.
- Provide your business address, registered company name or number (if a limited company), your unique tax reference number, and ID.
- Answer some eligibility questions.
- Wait for approval.
Apply via the Monzo app
You can begin an application for a Monzo business account on the provider’s website or on its app, but all applications must be completed through the app.
You can download the Monzo app from the App Store or Google Play, depending on your device.
If you’re switching from another business account, you may be eligible to use the Current Account Switch Service if your current bank is registered on this scheme. Monzo can close down your old account and transfer your money and direct debits to your new account.
Submit proof of your identity, address and business details
Monzo will need to see proof of the following during your application:
- your business address
- your registered company name or name, for limited companies
- your unique tax reference number
- your identity, if you don’t have a personal current account with Monzo
Answer eligibility questions
Monzo may need to gather some more information about you and your business to check that you’re eligible for an account, including the industry you operate in and your business structure. This is because some industries and business structures are not eligible to open a business account with Monzo at the moment, such as business partnerships or charities.
Wait for approval
Once you have submitted all of the required information and documents, you will need to wait for your application to be approved. If you’re approved, Monzo will then supply you with your account number and a debit card.
You could receive your business bank account details on the same day you apply, provided that you submit all the necessary information and Monzo does not need to ask you for anything else. You’ll likely receive your debit card within four days of approval.
Review methodology
At NerdWallet Ltd UK we base our reviews on the results of surveys we conduct to understand what key product features are important to those who use them, and align them to the product we review.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible but it is likely there are others available that we have not reviewed. The review is our opinion, but it does not constitute advice, recommendation or suitability of your financial circumstances.
You can view our review methodology here.
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