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Monzo vs Revolut: which is best for you?

5 mins read
by Unbiased Team
Last updated Wednesday, June 12, 2024

Discover the key features and potential benefits of Revolut and Monzo, including the difference between accounts, fees, savings features, and rewards programmes.

Summary

  • Revolut and Monzo are digital banks that offer access to app-based financial services.

  • Both banks offer a range of personal and business accounts.

  • Up to £85,000 held with Monzo is protected by the Financial Services Compensation Scheme (FSCS). Revolut safeguards your money but isn’t protected by FSCS.

  • Monzo and Revolut offer free overseas spending for travelling account holders, but some limits apply. 

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What is Monzo?

Monzo is one of the UK’s top-rated digital banks, serving over seven million customers in 2024. It offers various bank accounts with monthly fees, including Monzo Plus, the Flex credit card, and advanced budgeting tools. 

Monzo Bank was founded in 2015 and operates from its headquarters in London, England.

What is Revolut?

Revolut is an e-money institution headquartered in London. It offers a range of banking services, including credit and debit cards, currency exchange services, virtual cards, personal loans, buy now, pay later (BNPL), crypto and stock trading.

Revolut was founded in 2015, and as of 2024, the neobank with more than 40 million customers across 38 countries.

Which has the best bank accounts?

Both Monzo and Revolut have a wide selection of different account types to choose from, including joint accounts

Revolut offers a free under-18 bank account, allowing young people to manage their money through its app, while Monzo offers an account for 16-17-year-olds, with age-restricted spending features.

When comparing Monzo and Revolut, both also offer premium subscription services that unlock a range of benefits for customers.

Revolut’s premium plans include:

  • Revolut Plus (£3.99 per month)

  • Revolut Premium (£7.99 per month)

  • Revolut Metal (£14.99 per month)

  • Revolut Ultra (£45 per month)

Monzo’s premium plans include:

  • Monzo Extra (£3 per month)

  • Monzo Perks (£7 per month)

  • Monzo Max (from £17 per month) 

How do Revolut and Monzo fees compare?

Monzo and Revolut offer free monthly accounts

Premium accounts for Monzo range from £3 to £17 per month, while Revolut subscription accounts range in price from £3.99 to £45 per month. 

Monzo’s ATM withdrawals in the UK and European Economic Area (EEA) are free up to £400, carrying 3% bank fees thereafter if it’s not used as your main bank. 

If you use Monzo as your main bank or have a premium account, you get unlimited fee-free withdrawals in the UK and EEA. 

Revolut charges a 2% fee (minimum of £1 per withdrawal) on UK withdrawals over £200 per month or over five withdrawals each month, whichever threshold is reached first.

Revolut does not offer overdraft facilities, while Monzo’s overdrafts have interest rates of between 19% and 39% EAR.

Is Monzo or Revolut better for spending abroad?

Monzo doesn’t charge fees for spending abroad, while for Revolut customers, spending abroad is free up to £1,000 each month. Any spending over this amount will be charged at 1%. 

ATM withdrawals using Monzo are free up to £200 per month outside of the EEA and £400 per month inside the EEA, with a 3% fee after this threshold has been reached.

If you have a premium Monzo account, you get a higher monthly ATM withdrawal limit. 

Revolut levies a 2% fee on international withdrawals over £200 per month or over five withdrawals, whichever comes first. If you have a Premium, Metal or Ultra plan, you’ll get a higher withdrawal limit. 

Monzo works on Mastercard exchange rates, and Revolut works on Interbank exchange rates.

Both banks offer similar limits and fees, but Monzo’s fee-free abroad spending may appeal more to travellers. 

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Is Monzo or Revolut better for saving?

Monzo and Revolut offer savings pockets, round-up spending, and savings accounts. Revolut’s interest rates range between 2.29% and 4.8%, depending on the plan selected. 

Monzo has partnered with several savings providers to offer higher interest rates of up to 4.8%. Both banks make saving easy with built-in savings pockets and round-up spending. 

Is my money protected under FSCS with Revolut and Monzo?

Is Monzo FSCS protected? 

Yes, Monzo is registered in the UK, and all deposits of up to £85,000 are protected by the FSCS.

Is Revolut FSCS protected? 

Revolut does not hold a UK banking licence, meaning that deposits are not covered by the FSCS.

Revolut deposits are ‘ring-fenced’ into an account with one of the bank’s partner institutions to provide protection.

Does Monzo or Revolut have better app functionality?

Both banks are app-based financial institutions, allowing customers to make financial transactions via their apps or online.

Monzo and Revolut accounts can be linked to Google Pay and Apple Pay via their apps, and Monzo allows customers to link Monzo Extra, Perks, and Max features to their accounts through the app. 

Monzo and Revolut’s apps also offer a range of money management features, including in-app spending breakdowns, overdraft management and budgeting tools.

Are Monzo's rewards better than Revolut’s?

Monzo and Revolut offer different rewards for their banking customers. 

Monzo allows you to earn between 2% and 10% cashback on purchases made with selected retailers when offers are activated through its app, and Revolut offers up to 10% cashback on accommodation through Revolut Stays and when you spend with certain retailers. . 

Monzo customers can access additional rewards via the Perks and Max accounts, including global travel insurance with a Monzo Max account. 

Revolut’s perks are available to all account holders and include cashback from certain retailers when using a Revolut card.

The bank also offers insurance benefits to those with a Premium, Metal or Ultra account. 

Is Starling worth considering?

Starling is another popular digital banking choice often considered an alternative to Monzo and Revolut.

The Starling app offers unique features, allowing customers to scan cheques and open current accounts for those under 16.

The bank offers multi-currency business accounts and supports Apple, Samsung, and Google Pay.

However, it is important to note that Starling does not offer personal loans or BPNL or provide insurance to its customers.

Get expert financial advice

Monzo and Revolut both offer a range of accounts and benefits to their customers.

Let us connect you with an expert financial adviser to help you make the best choice for your banking and financial needs.

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Author
Unbiased Team
Our team of writers, who have decades of experience writing about personal finance, including investing, retirement and pensions, are here to help you find out what you must know about life’s biggest financial decisions.