In this guide, we review the best alternatives to Monzo Bank…
Best Monzo Alternatives
Top-rated Monzo alternatives — FAQs
Where did Monzo come from?
In 2015, Monzo was known under its original name, Mondo. Prepaid Mastercards were issued to early adopters and may be loaded from existing bank accounts. In 2017, Mondo rebranded as Monzo, obtained a banking licence, and began providing checking accounts and debit cards.
Monzo is now one of the most well-known UK challenger banks, with over 3 million clients. Because Monzo is an app-only bank, it does not provide a web portal for users to monitor their finances. You can check your account balance and make quick transfers in an emergency using Monzo Online, but you will never have access to your money.
To use it, you must have access to a smartphone. The full version of the app has a ton of cool stuff like pots, push alerts, the ability to borrow money, save money, and make a budget.
Is Monzo good for people without permanent UK residence?
Yes. The ‘financial inclusion’ of newcomers and those without permanent residences in the UK is a topic of discussion on the Monzo website. Monzo has 3 million users, suggesting it has broad appeal. However, the app-based bank may not be accessible to the elderly or others who struggle with devices.
The Monzo experience might be irritating if you often deal with cash or get payments in the form of checks. You can fund your account with cash at any store that accepts PayPoint for a cost of £1, whereas sending a check requires you to use the UK postal service.
Who uses Monzo?
It’s particularly liked by those who don’t want to use cash. Monzo has alternatives such as payment URLs that do not need account information to be shared, however they may not satisfy all users. Monzo is a good option if you don’t deal with cash much and are content to handle all of your personal banking through your smartphone.
The Monzo app offers a great deal of banking flexibility. It includes tools that make it easier to budget, save, and spend money. Many people who don’t require access to physical bank branches may benefit from using Monzo.
What is the Monzo application process?
Monzo claims that the signup process takes less than 10 minutes. The first step is to download the Monzo app on an iOS or Android smartphone.
After you’ve signed up, Monzo will take you through their security procedures. A video recording and government-issued photo ID (driver’s licence or passport) are both required. Your card will be sent to you when you enrol. Most consumers will get their Monzo card within 48 hours since it is sent out First Class.
Monzo is a full-featured UK checking account. An account number and routing code will be assigned to you. As a result, you’ll be able to accept payments and set up Direct Debits. Every Monzo customer is issued a vibrant Hot Coral Debit Mastercard to use at any time for purchases.
Are challenger banks regulated?
The Financial Services Compensation Scheme (FSCS) protects deposits up to £85,000 for customers of licenced UK banks like Monzo, which Monzo is. Similar to Monzo’s deposit guarantee, those at Atom Bank and Starling are provided by their UK banking licences.
While neither Revolut nor Monese qualify as banks, they are authorised to issue electronic money by the Financial Conduct Authority (FCA). All client monies must be held in separate bank accounts at authorised UK financial institutions and protected from creditors in the event of the company’s insolvency.
Monzo, Starling Bank vs. Revolut; who wins?
Overdraft protection is available with Monzo and Starling Bank, but not with Revolut. Monzo has teamed up with Wise to provide cheap and competitive international money transfers. In addition, Revolut provides currency conversions at market prices. Customers of Revolut may send money for free, albeit there may be costs associated with certain currencies, transfer quantities, and transfer times.
Is the Monzo Bank going out of business?
The rumour that Monzo is shutting down its bank accounts is untrue. “This is categorically untrue,” a Monzo representative told Full Fact. We’re a legitimate UK financial institution, and business is as normal here. By late Thursday afternoon, 11 May, the post had been removed despite having been widely shared earlier in the day.
Why do people use Monzo?
Monzo’s popularity has swept the UK, with 7.5 million consumers and counting vying to get their hands on the company’s hot coral card. The online bank was ahead of the curve by offering convenient tools for handling financial matters on the go.
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