What Monzo actually does
Monzo is a UK mobile bank built around a free current account, with a ladder of paid subscriptions on top that add savings rate boosts, budgeting tools and lifestyle perks.
The core product
Monzo Bank Limited holds a full UK banking licence — it's authorised by the Prudential Regulation Authority (PRA) and regulated by both the Financial Conduct Authority (FCA) and the PRA, putting it on the same regulatory footing as long-established high-street banks rather than being a payments firm operating under someone else's licence. The free account has no monthly fee and includes real-time spending notifications, a debit card, budgeting pots, the ability to connect one external bank or credit card for a combined view, and fee-free withdrawals up to £400 every 30 days across the UK and EEA. It also pays a real, published savings rate on linked pots — 2.75% AER on Instant Access and 3.15% AER on Select Access at the free tier — which is unusually generous for a no-cost account.
What's new or notable
Monzo's three paid tiers each add clearly different value rather than just cosmetic upgrades. Extra (£3/month) raises Instant Access savings to 3.00% AER, removes the "one connected bank" limit, adds virtual cards, advanced round-ups, custom spending categories, credit insights across two credit scores, and a "Billsback" feature covering up to £150 of bills, plus unlimited fee-free withdrawals across the UK and EEA. Perks (£9/month) pushes savings rates higher still (3.25%/3.65% AER), and adds an annual Railcard, a weekly Greggs treat, a monthly Vue cinema ticket, Uber One membership, YouTube Premium Lite, discounted investment fees, and a higher £600 fee-free withdrawal allowance outside the EEA. Max, from £19/month, tops the range with 3.50% AER on Instant Access savings, worldwide personal travel insurance, phone insurance, and UK/Europe breakdown cover — but it requires a minimum three-month commitment, so it's a genuine recurring cost rather than a one-off upgrade.
Who should use Monzo
Great fit if…
- You want a free UK account with real savings rates — the free tier's 2.75%–3.15% AER on linked pots is competitive without paying anything.
- You'd use Extra's practical upgrades — unlimited connected banks, custom categories and Billsback are useful budgeting features for a modest £3/month.
- You'd actually use Perks' lifestyle perks — the Railcard, Greggs treat, cinema ticket and Uber One membership can be worth more than £9/month if you use them regularly.
Skip it if…
- You want travel or phone insurance without a big commitment — Max is the only tier that includes them, and it carries the highest fee plus a minimum three-month term.
- You're outside the UK — Monzo is a UK-only current account and won't work as a general EU banking base.
- You want free unlimited withdrawals outside the EEA — only Perks and Max raise the fee-free allowance for withdrawals made outside Europe.
Pricing in detail
Monzo's free account is genuinely usable on its own; each paid tier adds specific, named features rather than just raising a generic limit.
| Plan | Price | What's included |
|---|---|---|
| Free | £0/month | UK current account, FSCS protection up to £120,000, 2.75%/3.15% AER on savings pots, one connected external bank, fee-free withdrawals up to £400/30 days in UK/EEA |
| Extra | £3/month | Everything in Free, plus 3.00% AER savings, unlimited connected banks, virtual cards, advanced round-ups, custom categories, credit insights, Billsback up to £150, unlimited fee-free UK/EEA withdrawals |
| Perks | £9/month | Everything in Extra, plus 3.25%/3.65% AER savings, annual Railcard, weekly Greggs treat, monthly Vue ticket, Uber One, YouTube Premium Lite, discounted investment fees, £600/month fee-free withdrawals outside the EEA |
| Max | From £19/month (minimum 3-month term) | Everything in Perks, plus 3.50% AER savings, worldwide travel insurance, phone insurance, and UK/Europe breakdown cover |
Where it falls short
- Free-tier budgeting tools are thinner — spending-insight and categorisation tools are noticeably more limited than what Extra, Perks and Max unlock.
- Headline perks are paid-only — travel insurance, phone insurance and lounge-style extras only exist on the paid subscription tiers, not the free account.
- Max is a real recurring commitment — its £19+ monthly fee requires a minimum three-month term, so it's a genuine ongoing cost rather than a one-off add-on.
Privacy & data
As a dual-regulated UK bank, Monzo is bound by UK GDPR and FCA/PRA data-handling requirements, and its "connected banks" feature on paid tiers relies on Open Banking (PSD2-style) APIs to pull in balances and transactions from other providers with the user's consent. Monzo's public pages don't detail specifics like its exact encryption setup or how long connected-account data is retained after a user disconnects a linked bank, so beyond standard UK banking data-protection law we can't independently confirm more than that — its own privacy policy is the place to check for specifics.
How we checked this
This review is based on Monzo's official plans page (monzo.com/plus), checked on 2026-09-04, for tier names, monthly prices, savings rates and included features. We did not open an account or test the app directly, so always confirm current savings rates and perk terms on Monzo's own site before subscribing, since AER rates in particular can change.
What you get, what you give up
What you get
- Free UK current account with eligible deposits covered by the FSCS up to £120,000
- Fully licensed and dual-regulated by the FCA and PRA, not a wrapper around another bank
What you give up
- The free account's built-in budgeting and spending-insight tools are more limited than the paid Extra, Perks and Max tiers.
- Travel insurance, phone insurance, airport lounge access and other lifestyle perks are only included on the paid subscription plans, not the free account.
- Max requires a minimum three-month commitment, and its £19+ monthly fee is a recurring cost on top of ordinary spending.