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This Monzo vs Monese comparison helps you decide the best current account for you. Monzo is arguably the most popular bank. But can the flashy coral card win against the heady competition?
When comparing Monzo vs Monese, Monzo is the clear winner. Because of its status as a bank, your money has better protection. Yet, Monese has some advantages, too.
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Key Features
| Bank | Monzo | Monese |
|---|---|---|
| Sign-up fee | £0 | £4.95 for the debit card |
| Monthly fee | £0-£15.00 | £0-£14.95 |
| Interest on savings | 0%-1.49% | Via Raisin (up to 1.52%) |
| Overdraft available | Upon application | No |
| Use of ATMs | Free up to limit | Fees apply |
| Use abroad | Free withdrawals up to a limit | Fees apply depending on the plan Offers multi-currency account |
| Full review | Monzo review | Monese review |
| Full terms | Here | Here |
Security and Protection
Winner: Monzo
Security and protection are the most important factors when looking for a place to store money. Monzo is a bank. Your money has the same protection as traditional bank accounts. It is part of the Financial Services Compensation Scheme (FSCS).
Should Monzo become bankrupt, you get up to £85,000 back from the FSCS. There is no risk of losing money if you stay below this limit.
Monese is often called a digital bank but is actually an eMoney institution. It is more comparable to eWallets, such as PayPal, than Monzo. There is no FSCS protection, and you may lose money if Monese stops trading.
Ease of Setting up
Winner: Monese
Monzo and Monese accounts are easy to open, and the registration should take only a few minutes. For both Monzo and Monese, you need the following:
- Email address
- Phone number
- Identification (passport, driving license, etc.)
Because Monzo is a bank, you also need proof of address. For Monese, you do not need this. Monese is easier to set up if you have no address, are new to the country, or have moved recently.
Saving Money
Winner: Monzo
Monzo and Monese offer savings pots, separate units within your account for saving. With Monzo, you need a paid plan to earn interest (the cost of which outweighs the interest). Monese offers interest on its free plan.
However, because Monese has no FSCS protection, I do not recommend using Monese to save. In the event of bankruptcy or other problems, you may lose your money.
Monzo does not offer interest rates on the free plan. Thus, it is not a great option for a savings account either.
Spending Money
Winner: Tie
Within the UK
Making card or bank transactions with the country is free with both banks. Monzo offers free withdrawals of up to £200 per month on the free plan if you want to withdraw money. With Monese, you pay a fee unless you are on the paid plans.
Abroad
You can use both Monzo and Monese abroad. Monese offers a multi-currency account. You can have more than one currency in your account. This is useful if you need to make transactions in different currencies.
Monzo and Monese are the best travel accounts due to their ease of use abroad and good exchange rates.
Premium Accounts
Winner: Tie
Both banks offer paid plans in addition to their free accounts. I don’t think people should pay for a bank account, but let’s see what you get for your money.
With Monzo, you can choose between the Plus plan (£5 per month) and the Premium plan (£15). The Premium plan adds a bunch of different functions:
- Phone insurance
- Family travel insurance
- Discounted airport lounge access
- Viewing other accounts in Monzo
- Lower fees and higher limits compared to the free plan
- Other features
Monese offers the Classic plan (£5.95) and the Premium plan (£14.95). On the Premium plan, you get:
- Insurance (accidents, hospital stay, unemployment)
- Purchase protection
- Lower fees and higher limits compared to the free plan
If you want to pay for a bank account, the best depends on your needs. No paid plan is better than the other.
User Interface and Other Functionality
Winner: Monzo
I am probably biased with this, but I am a huge fan of the Monzo user interface. It is clean, easy to navigate and intuitive. I prefer it over Monese, although Monese also serves its purpose.
One of the benefits of Monzo is the ability to have budgeting categories. I use this for my monthly budget, and it’s making my life much easier. Monzo sorts your payments into categories so you can see where you spend too much.
Monese enables its users to link their accounts to PayPal. This is convenient if you are a frequent PayPal user. I use this function because many of my invoices are paid via PayPal.
Friend Referral Schemes
Winner: Monese
Both Monzo and Monese offer friend referral schemes. With these programs, users receive a bonus if they refer a friend. The referred friend also gets a reward.
With Monzo, users receive a £5 cash bonus if they refer a friend. The friend also gets £5 if they activate their card. Users can refer up to 500 friends, which may be upgraded to unlimited.
With Monese, users receive up to £30 if they refer a friend. The first £20 is credited after the referred person activates their card. The remaining £10 is credited after they spend £500 on their card. The referred friend receives the same bonuses. You can only refer 15 friends with Monese.
Users can make more money by referring friends to Monese. With Monzo, you can refer more friends, but most people probably won’t refer more than 15 anyway.
User Ratings
Winner: Tie
Trustpilot is an independent reviewing platform. Users can rate how they find a product or service. Monzo and Monese have the same average score (4.1 out of 5.0).
What Is Trustpilot?
Overall, there are over 150 million reviews on Trustpilot. You can generally get a good understanding of the legitimacy and customer-friendliness of a company.
Monzo vs Monese Comparison Summary
When comparing Monzo vs Monese, Monzo is the winner:
- Security and protection: Monzo
- Ease of setting up: Monese
- Saving money: Monzo
- Spending money: Tie
- Premium accounts: Tie
- User interface and other functionality: Monzo
- Friend referral schemes: Monese
- User ratings: Tie
However, Monese is also a useful account. If you make frequent transfers abroad or want to link your PayPal account, you might prefer Monese. Remember that your money has less protection than with Monzo.
You can also have both accounts. I use Monzo for daily spending and budgeting and Monese for my business. Both have good friend referral programs, so you can make money from having both.
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