How to Open a Monzo Personal and Business Account Online in 2023

If you are a business owner or an individual living in the United Kingdom and are looking to open a bank or business account online, then Monzo might be an option for you to consider.

Monzo is an online-only challenger bank based in the United Kingdom, and in this article, we will describe step-by-step how you can open a Monzo personal and business account.

We will also describe in detail the services that Monzo has to offer to individuals and businesses so you can decide whether Monzo is right for you.

What Exactly Is Monzo?

Monzo Bank Ltd. is one of the leading challenger banks and one of the most innovative startups in the United Kingdom.

It was founded as Mondo in 2015 by Tom Blomfield, Jason Bates, Jonas Huckestein, Gary Dolman, and Paul Rippon. The founders met while working at another groundbreaking challenger bank, Starling.

The growing popularity of challenger banks among banking customers in the world has allowed Monzo to develop a huge following since its launch in 2015 and to fundamentally change the way individuals and businesses manage their money.

Initially, Monzo only operated through a mobile app and a prepaid debit card.

However, after acquiring a banking license in the United Kingdom, they became authorised to expand their product line.

Monzo is now considerably developed and is able to offer a full current account, integrated savings account, and personal loans, all without operating with any physical branches.

Eligibility Requirements for Personal Accounts:

To open a Monzo account as an individual, you will need to meet the following eligibility requirements:

• At least 16 years old
• Live in the United Kingdom full time
• Mobile phone number and valid identification document (passport, driving license, national ID card, or biometric residency permit).

How to Open a Monzo Personal Account?

Opening a Monzo personal account is simple and takes up to 15 minutes. Anyone older than 16 can open an account if they live in the UK. There are no other special requirements.

The Monzo app is available in all major app stores. Here’s, in short, how the process looks like:

Step 1 - Download the Monzo app via Apple Store or Google Play Store.
Step 2 - Tap “I’m new to Monzo”
Step 3 - Enter your email address
Step 4 - Enter your address
Step 5 - Enter your phone number
Step 6 - Enter a six-digit code you get from a text message
Step 7 - Enable notifications
Step 8 - Answer questions about you, your finances, and how you plan to use the account
Step 9 - Verify your identity 
Step 10 - Choose the account type (Standard, Plus, Premium)
Step 11 - Confirm card details
Step 12 - Set your PIN

Opening any of the accounts is a simple process, and all you need to do is have a stable internet connection and the latest version of Monzo's mobile application downloaded on your phone. For new Monzo customers, you can easily apply for the account of your choice through the app.

You also have the option to sign up with a standard Monzo account and upgrade to a Plus account whenever you like depending on your financial situation and preferences.

You verify your identity by taking a photo of a valid government-issued ID and recording a short video of yourself.

After signing up through the mobile app, submitting your identification documents, and completing all security checks, your Monzo card will be delivered right to your doorstep.

What Does Monzo Offer Individuals?

If you live in the United Kingdom, Monzo offers three personal accounts to choose from.

Each current account comes with a different fee structure and unique features:

1- The Standard Account

• No monthly fees
• No ATM withdrawal fees in the UK
• Domestic transfers free of charge
• Monzo uses Wise for all overseas transfers
• No overseas ATM withdrawal fee up to the first £200 withdrawn, along with no currency conversion charge. After that, the charge is 3% per withdrawal
• Signature hot coral contactless Mastercard®
• Spending categories
• Pots for separating money

2- The Plus Account

Similar to its Standard version, a Monzo Plus account also offers free UK ATM withdrawals, free transfers to UK accounts, and a fee set by Wise for all overseas transfers.

However, this type of account has a minimum term of 3 months and comes with £5 a month fee because you benefit from additional functionalities.

Plus Account Additional Features:

• No overseas ATM withdrawal fee up to the first £200 withdrawn, along with no currency conversion charge. After that, the charge is 3% per withdrawal.
• 1.00% AER/Gross (variable) interest up to £2,000 on current account and regular Pots
• Holographic Mastercard® debit card.
• Virtual cards
• Custom categories (divide payments into multiple categories)
• Advanced spare change roundups
• Auto-export transactions
• 1 free cash deposit at Pay points across the UK once a month.
• Option to add other bank accounts and credit cards to your account to see your total balance, manage all your transactions and move money around with easy transfers.
• Built-in credit tracker to see your credit score and track how it changes each month.
• The rewards program offers include 15% and 25% off on multiple brands.

The Monzo Plus account lets you choose between a ‘midnight sky’ or ‘blue lagoon’ holographic contactless Mastercard® compared to the standard hot coral card colour.

This account is a great option for someone who is happy to pay £5 a month to have an all-in-one account with greater control over their finances as you can easily track your credit score, move money easily between accounts, and conveniently make transfers abroad.

3- The Premium Account

The Monzo Premium personal account comes with a six-month minimum term with an account fee of £15 a month.

This account includes all the features of the Standard account and the Plus account with the addition of deluxe features.

Premium Account Additional Features:

• Phone and family-wide travel insurance are provided by Assurant and AXA, respectively
• Access to 1100 discounted airport lounges provided by LoungeKey
• 1.50%/1.49AER/Gross (variable) interest up to £2,000
• No overseas ATM withdrawal fee up to the first £600 withdrawn, along with no currency conversion charge. After that, the charge is 3% per withdrawal.
• More retail offers
• Five free cash deposits a month

Compared to the holographic and hot coral cards, a Premium account comes with a white metal card.

Can I Open a Business Bank Account with Monzo?

Yes, Monzo Business helps small businesses stay on top of their finances with no monthly fees.

The Business account is a great option for smaller businesses and startups.

Opening a Monzo business account is a straightforward process that can be completed online within minutes, eliminating the need for lengthy paperwork or visits to a physical branch.

Monzo provides a user-friendly and intuitive digital platform, allowing business owners to manage their finances efficiently and conveniently from their smartphones or computers.

This includes instant notifications and detailed spending insights, and built-in budgeting features that enable business owners to set spending limits, track expenses, and categorize transactions, making it easier to manage and control their business finances.

It also allows for fee-free international payments, making it convenient and cost-effective for businesses involved in global transactions.

For Business bank accounts, you have two options to choose from:

1- Business Lite

• No monthly account fee
• Fee-free UK bank transfers
• Fee-free spending abroad
• 24/7 customer support
• Mobile and web access
• Pots to separate money
• Card payments with Stripe
• Budget and categorise spending
• Digital receipts
• Instant notifications
• Business debit card

2- Business Pro

All the features of the Lite account, plus:

• A monthly account fee of £5
• Tax Pots - Automatic allocation for easy tax planning!
• Multi-user access for limited companies - You can add up to 2 other people from the app.
• Easily integrate your business accounting tools (Xero, QuickBooks, Free Agent)
• 6 months Xero free (optional)
• Invoicing, auto-export transactions, virtual cards
• Exclusive offers

Eligibility Requirements for Business Accounts

To open a Monzo business account, your company will need to meet the following requirements:

• A sole trader or a registered limited company by shares
• Based in the United Kingdom and
• A tax resident in the UK only (if you’re a limited company by shares)

For a limited company registered in the UK, Monzo is required to verify any people with significant control, which includes access to information and Identification documents such as biometric residency permits, and national id card.

You can find out more details regarding the eligibility requirements for a Monzo business account.

🔍Tip: Read our detailed review of Monzo's business account before you open an account.

How to Open a Monzo Business Account?

If you already have a Monzo personal account, scroll all the way down to ‘Do more with Monzo’, then tap ‘Apply for a Business account’. If not, download the Monzo app from the App Store or Play Store.

Make sure you have the following documents handy:

• Proof of business address
• Registered company number or name (for limited companies)
• Unique tax reference number
• If you don’t have a Monzo personal account, you’ll also need an ID

The process itself for opening a business account is similar to that of a personal account but includes more questions about you and your business. 

Is Monzo Safe?

Monzo is a fully-licensed and regulated UK bank. Eligible money in Monzo is protected up to £85,000 per person by the Financial Services Compensation Scheme (FSCS). 

The company prioritizes customer safety by employing encryption, two-factor authentication, instant notifications, freeze card functionality, in-app support, and collaborating with security experts. 

While no system is completely risk-free, Monzo takes security seriously and encourages users to remain cautious and practice good security habits.

Final Words

That's it for our guide! Hopefully, this article clarifies how to open a Monzo account. If you're ready to get started, head over to their website or the app store and download the Monzo app. If anything is missing, please feel free to reach out!