Monzo, one of the UK’s most popular digital banks, offers tailored business banking solutions for startups, SMEs, and freelancers. With its user-friendly app and a focus on transparency, Monzo Business aims to simplify financial management. But is it the right choice for your business? This review dives into Monzo Business pricing, features, and key considerations.
Monzo Business pricing tiers review
Monzo Business provides two distinct account options:
1. Monzo Lite (Free)
Ideal for small businesses and sole traders seeking a cost-effective solution, the Monzo Lite account offers essential features to manage day-to-day finances.
Key features:
- Free UK bank transfers
- Instant payment notifications
- Basic expense tracking
- Integration with accounting tools like Xero and QuickBooks
- Access to savings pots for organising funds
Limitations:
- No multi-user access
- Limited analytics and invoicing capabilities
2. Monzo Pro (£5/month)
For businesses needing advanced tools to streamline operations, Monzo Pro provides a comprehensive suite of features.
Key features:
- All Lite features, plus:
- Multi-user access for team collaboration
- Tax pots for automated VAT and tax saving
- Invoice creation and tracking within the app
- Advanced financial insights and analytics
- Integration with Stripe for easy payments
- Fee-free cash deposits up to £1,000/month at PayPoints (then £1 per deposit)
Considerations:
- The £5/month fee is competitive but may add up if combined with other business tools.
Additional costs and fees
While Monzo Business keeps pricing straightforward, there are some additional charges to be aware of:
- Cash deposits: £1 per deposit after the first £1,000/month (Pro users only)
- International transfers: Monzo partners with Wise, and fees vary based on the transfer amount and destination.
- ATM withdrawals: Free up to £200/month, then a 3% fee applies.
- Overdrafts and loans: Subject to credit approval; interest rates vary.
Advantages of Monzo Business
- Ease of use: Monzo’s intuitive app is one of the best in the market, offering real-time notifications and seamless integrations.
- Cost-effectiveness: The free Lite account covers essential features, while Pro provides advanced tools at a modest price.
- Automation: Features like tax pots and invoice tracking save time on administrative tasks.
- Support for freelancers: Monzo is well-suited for sole traders with its straightforward structure.
Potential drawbacks
- Limited cash handling: Businesses heavily reliant on cash may find Monzo’s deposit limits and fees restrictive.
- No branches: As a digital-only bank, Monzo lacks physical locations, which may deter businesses that prefer face-to-face support.
- Niche features missing: Larger companies might need more advanced services like foreign currency accounts or complex payroll integrations.
Review verdict – Is Monzo Business the right choice for your business?
Monzo Business excels in providing a seamless banking experience for small businesses, freelancers, and startups. Its pricing structure is transparent, and the Pro plan offers valuable tools for growing businesses. However, if your operations involve heavy cash handling or require more sophisticated banking services, Monzo might not meet your needs.
For businesses prioritising simplicity, affordability, and tech-driven solutions, Monzo Business is an excellent contender. Before committing, consider your specific financial requirements and whether Monzo aligns with your operational needs.
Final thoughts
To conclude our pricing review, Monzo Business offers a solid, modern alternative to traditional business banking. With a low-cost Pro plan and a free Lite account, it accommodates various business sizes. However, assessing your requirements against its features and limitations is key to determining whether it’s the right fit for your business.
FAQ – Monzo Business pricing review
Monzo Business accounts are available for sole traders and limited companies registered in the UK. However, certain industries, such as financial services or cryptocurrency-related businesses, may not be eligible.
Yes, Monzo Business offers overdrafts and business loans, but eligibility depends on your creditworthiness and the account activity.
Monzo Business partners with Wise for international payments, offering competitive exchange rates and transparent fees. This is managed directly through the Monzo app.
Yes, you can deposit cash at PayPoint locations across the UK. Pro account holders can deposit up to £1,000 per month for free, with a £1 fee per deposit thereafter.
Monzo Business offers in-app chat support, which is available 24/7, as well as a detailed online help centre for troubleshooting and guidance.
While Monzo Business does not support cheque deposits via branches, you can post cheques to Monzo for processing. This is not a common feature among digital banks.
Yes, Monzo Business integrates with popular accounting tools like Xero, QuickBooks, and FreeAgent to simplify financial management and bookkeeping.
Yes, the Monzo Pro account allows multi-user access, so you can grant team members specific permissions to manage business finances collaboratively.
Monzo Business uses robust security measures, including encryption, in-app authentication, and real-time fraud detection, to protect your account.
Yes, you can upgrade from the Lite account to Pro through the Monzo app at any time. The transition is seamless, and you’ll immediately gain access to Pro features.