Monese vs. Monzo: Features, Fees, Pros & Cons

With digital payments, Monese and Monzo are popular choices in the UK and across Europe. Both platforms offer innovative features designed to simplify personal finance management, but which one truly excels?

Here’s the difference:

The main difference is that Monese focuses more on offering essential features with a lower price point, making it ideal for basic users, while Monzo provides more advanced features like custom reports and investment tracking, catering to users who need comprehensive financial tools.

In this guide, we’ll compare Monese and Monzo across 7 key features, dive into their pricing structures, and help you decide which service is right for you.

Table Overview: 7 Key Features of Monese vs Monzo

Personal Note:

I loved using Monese because it made managing my finances so simple—its intuitive interface and flexibility were perfect for my day-to-day needs. However, I switched to Monzo because it offers more advanced budgeting features that align with my long-term financial goals. The real-time notifications and personalized spending insights give me the clarity I need to stay on track. Tool 1 is great, but Monzo just feels like a better fit for where I am now financially.

What is Monese? How It Works

Monese is a digital financial management platform designed to streamline personal finances. It helps users track spending, create budgets, and set financial goals. Through intuitive dashboards, it integrates with multiple bank accounts, displaying all financial activity in one place. Users can also categorize transactions and receive real-time alerts to monitor their cash flow better.

Pros of Monese:

• Easy to use: User-friendly interface simplifies budgeting.
• Multiple account integration: Supports various bank accounts.
• Real-time notifications: Alerts on spending and savings.
• Goal tracking: Helps set and monitor financial goals.
• Security: End-to-end encryption ensures data protection.

Cons of Monese:

• Limited advanced features: Doesn’t offer in-depth investment tools.
• Subscription cost: Premium features come at a cost.
• No international support: Limited to certain countries.
• Occasional syncing issues: Delays in syncing with accounts.

Monzo: What It Is and How It Works

Monzo is an all-encompassing financial app that offers budgeting, investment management, and personalized financial insights. It automates transaction tracking and delivers robust reporting features, assisting users in gaining a clear financial overview.

Pros of Monzo:

• Includes budgeting, investment, and saving tools.
• Personalized financial recommendations.
• Available in multiple regions.
• Integrated with stock and investment portfolios.
• Users can tweak it to fit their needs.
• Offers a solid free version for essential budgeting.

Cons of Monzo:

• A steeper learning curve for some users.
• Higher tiers are expensive.
• Some users report issues with updates.
• Response times may be slow.

A Comprehensive Monese vs. Monzo Comparison: Key Features

Let’s delve in and compare the two apps side by side:

1. Account Availability

Monese operates across Europe, providing financial services to expatriates, freelancers, and those with limited or no credit history. The platform allows users to open accounts in GBP, EUR, and RON, making it an appealing choice for international travelers or those who frequently switch between currencies.

Monzo, on the other hand, is mainly available in the UK, with a beta launch in the USA. While not as widespread in terms of European account openings, Monzo does offer transfers to international accounts via TransferWise, broadening its reach.

Verdict: Monese wins this round for broader availability across Europe, especially for those needing multi-currency accounts.

2. Currency Support

Monese offers support for GBP, EUR, and RON accounts, allowing users to manage multiple currencies within a single app. This is especially useful for expatriates, freelancers, or international travelers.

Monzo natively supports only GBP but offers international transfers in other currencies via its partnership with TransferWise. While this allows users to send money abroad, it doesn’t offer the convenience of holding multiple currencies within the app itself.

Verdict: Monese takes the lead due to its built-in multi-currency functionality.

3. Fees for Foreign Transactions

Monese offers free foreign transactions for its Premium users, while Free-tier users are subject to a 2% fee after spending £2,000. This tiered pricing structure is helpful for those who regularly make foreign transactions but want to avoid hefty fees.

Monzo allows free foreign transactions for most users, with a 3% fee applied to large withdrawals over £200 for non-premium users. Premium users enjoy more flexibility with increased limits.

Verdict: Monzo edges out Monese here with its generous free foreign transaction limits for everyday users.

4. Spending Insights & Analytics

Monese provides spending notifications and basic analytics, helping users keep track of their spending in real time. It’s a simple but functional system, suitable for those who need quick insights into their spending habits.

Monzo, on the other hand, offers a more detailed and visually appealing spending tracker with graphs, breakdowns by category, and monthly spending projections. It’s an ideal solution for users who want to dive deep into their financial habits.

Verdict: Monzo is the clear winner with more advanced spending insights and analytics.

5. Overdrafts & Loans

Monese doesn’t currently offer overdrafts or loans, which may limit its appeal for users who rely on these banking features.

Monzo offers both overdrafts (up to £1,000) and personal loans (up to £3,000). While their rates vary based on credit score, it’s a valuable feature for those who need quick access to funds.

Verdict: Monzo wins by offering both overdrafts and personal loans, filling a significant gap in Monese’s offerings.

6. Multi-currency Accounts

Monese supports multi-currency accounts, allowing users to hold, send, and receive money in GBP, EUR, and RON. This makes it an excellent choice for frequent travelers and expatriates who need access to multiple currencies at once.

Monzo does not support multi-currency accounts natively, though international transfers are available through TransferWise. This limits Monzo’s appeal for those who regularly deal with multiple currencies.

Verdict: Monese takes the lead for its robust multi-currency account feature.

7. Customer Support

Monese offers email and chat support, with Premium users getting priority response times. Their support is functional, but it can sometimes take a while to receive a response during peak times.

Monzo provides in-app support chat, with 24/7 availability for premium users. Their customer service is known for being responsive and helpful, especially with higher-tier account holders.

Verdict: Monzo wins with its 24/7 support for premium users and faster response times.

Monese vs. Monzo Pricing Breakdown

Here’s a simple breakdown of the fees and pricing for Monese and Monzo:

Monese Use Cases

1. International Freelancers
   Freelancers like Daniel, a UK-based graphic designer working with clients across Europe, rely on Monese for its multi-currency support. He holds both GBP and EUR accounts, allowing him to get paid in Euros without high conversion fees. Daniel uses Monese’s seamless bank transfer system to manage client payments and easily switch between currencies while avoiding traditional banking fees, making it the perfect tool for his cross-border business transactions.
2. Expatriates
   Alice, a French national working in the UK, found traditional banking difficult when moving to a new country. With Monese, she quickly opened a GBP account without needing a local address or credit history. Monese helped Alice streamline her financial management, allowing her to transfer money back to France effortlessly. The app’s support for multiple currencies and its user-friendly interface made her transition into UK life far more convenient.

Monzo Use Cases

1. Budget-Conscious Consumers
   Sam, a UK resident, uses Monzo’s detailed budgeting features to track his daily spending. The app categorizes his expenses into food, bills, entertainment, and more, sending real-time notifications that help him stay within budget. Monzo’s saving pots feature allows him to automatically set aside money each month for his holiday fund, making it easy to meet savings goals while keeping day-to-day finances in check.
2. Young Professionals
   Katie, a recent graduate, uses Monzo’s overdraft and loan options to manage her finances. Monzo’s clear overdraft terms helped Katie avoid hidden fees while she transitioned into her first full-time job. Monzo’s budgeting tools and financial insights also helped her balance her income with monthly expenses, setting her on the right track for managing personal finances post-university.

5 Factors to Consider Before Choosing Monese or Monzo

Geographic Availability

Monese is available across the UK and Europe, which is ideal for users who need an account that supports multiple currencies and can be used without the traditional banking hurdles. This makes it a go-to solution for expatriates and travelers.

Monzo is primarily UK-based but has a growing presence in the USA (beta stage). If you’re based in the UK and rarely travel, Monzo might be sufficient, but for those who require multi-currency accounts across Europe, Monese’s wider availability is a clear advantage.

Currency Support

Monese shines with its multi-currency support, allowing you to open and manage accounts in GBP, EUR, and RON. This feature is incredibly valuable for people handling transactions in different currencies without conversion fees.

Monzo, in contrast, offers GBP accounts and international transfers via TransferWise but does not allow users to hold multiple currencies.

If you’re someone who needs multi-currency functionality, Monese is the better option, while Monzo is sufficient for users focused on the UK market.

Spending Insights & Budgeting Tools

Monzo offers detailed budgeting tools and spending insights, breaking down your expenses by category and helping users track their monthly spending.

Its interface is highly user-friendly, and it even sends warnings when you’re about to exceed your budget.

Monese offers simpler insights with real-time notifications of transactions but lacks the deeper analytical tools provided by Monzo. For users focused on managing their finances closely, Monzo takes the lead with its advanced spending insights.

Overdraft and Loan Options

Monzo provides users with overdrafts (up to £1,000) and personal loans (up to £3,000), making it more versatile for those needing access to credit.

The app gives clear interest breakdowns and flexible repayment options. Monese, unfortunately, does not offer overdraft or loan features, which may be a limitation for users who want these services built into their mobile banking app. If credit access is important to you, Monzo is the better choice.

Fees and Premium Tiers

Monese has a tiered pricing model where the free plan includes limitations, such as a 2% fee for transactions above £2,000 per month. Premium tiers offer more benefits, including higher withdrawal limits and free foreign transactions.

Monzo has a more straightforward fee structure, offering free transactions and budgeting tools, with premium options that add extra features like exclusive offers and a metal card.

For users looking for basic banking, Monzo’s free plan is more generous, but Monese offers better premium options for those who need more robust services.

FAQs

5 Common Questions About Monese and Monzo

1. Can I use Monese or Monzo abroad?
   Both Monese and Monzo offer excellent services for international travelers. Monese supports GBP, EUR, and RON, making it ideal for those frequently crossing borders. Monzo allows fee-free transactions abroad but charges a 3% fee for large ATM withdrawals over £200.
2. Do Monese and Monzo offer credit or loans?
   Monese does not offer overdrafts or loans. Monzo, however, provides overdrafts up to £1,000 and personal loans up to £3,000, making it more suitable for users needing access to credit.
3. Are there fees for using these apps?
   Monese has different tiers, with free accounts having limitations like a 2% fee on transactions beyond £2,000. Monzo offers fee-free banking for most users, with premium plans for additional perks.
4. Which app is better for budgeting?
   Monzo’s advanced spending insights, budgeting tools, and categorization make it the superior choice for budgeting. Monese offers basic spending notifications, but it’s not as detailed as Monzo’s tools.
5. Can I switch between the apps easily?
   Yes, both Monese and Monzo allow for easy sign-ups and switching between accounts, but Monzo is more UK-centric, while Monese provides broader European support.

Which is the Better Choice?

Monese excels in multi-currency support and broader account availability, making it ideal for frequent travelers, expatriates, or those working with multiple currencies. However, it lacks some advanced features like loans and overdrafts.

Monzo offers a more complete banking experience for users in the UK, with advanced spending insights, loans, and overdrafts, making it a top choice for individuals looking for a more traditional banking experience.

The best choice ultimately depends on your specific needs—whether it’s international functionality with Monese or robust UK-centric banking features with Monzo.