Monzo vs Revolut: which is best for you?

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 based in London. As of 2024, it is authorised as a bank in the UK with restrictions, meaning it’s on its way to becoming a fully regulated bank.

Revolut offers a range of banking services, currency exchange services, virtual cards, crypto and stock trading.

Revolut was founded in 2015 and as of 2024, the neobank has more than 50 million customers across 38 countries, including 10 million in the UK.

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 are:

• 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 are:

• 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’s subscription accounts cost between £3.99 and £45 per month. 

If you have a Monzo or Monzo Extra account, you get unlimited ATM cash withdrawals in the UK and European Economic Area (EEA) and £200 fee-free every 30 days elsewhere in the world. 

If you have a Monzo Perks or Monzo Max account, you get unlimited fee-free withdrawals in the UK and EEA and £600 fee-free withdrawals every 30 days elsewhere. Above these limits, you will be charged 3%.

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

Here are the limits for the other plans: 

• Revolut Plus: £200 per month

• Revolut Premium: £400 per month

• Revolut Metal: £800 per month

• Revolut Ultra: £2,000 per month

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 foreign transaction fees for spending abroad on your debit card. For Revolut customers, spending abroad is free up to a certain amount based on your plan, after which you will be charged 0.5%-1%. All currency exchanges on weekends incur a 1% fee.  

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 overseas spending may appeal more to travellers. 

Is Monzo or Revolut better for saving?

Monzo and Revolut offer savings pots, instant access savings accounts, and automatic round-ups on spending.

Revolut is the top payer of the two at the time of writing, offering 4% to 5% AER, depending on your plan. Monzo gives you 3.6% to 4.1% AER, depending on which account type you hold. 

Revolut and Monzo 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 yet hold a full UK banking licence, so its normal e-money accounts are not protected by the FSCS.

However, Revolut holds savings account deposits in trust with partner bank ClearBank, which means they are protected up to £85,000 under FSCS.

Does Monzo or Revolut have better app functionality?

Revolut and Monzo are app-based financial institutions that allow customers to make financial transactions via their apps or online.

Monzo and Revolut accounts can be linked to Google Pay and Apple Pay for seamless financial management.

Monzo and Revolut’s apps also offer a range of useful features, including in-app spending breakdowns, overdraft management (Monzo only) and budgeting tools. Both are user-friendly and intuitive for people who prefer doing their day-to-day banking from their mobile devices.

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. Revolut offers up to 10% cashback (called RevPoints) on accommodation through Revolut Stays and when you spend with certain retailers. You can redeem the points for air miles, travel perks and other benefits.

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 on its monthly fee accounts.

Does Monzo or Revolut have the best perks?

Depending on which account plan you choose, you could get access to some of the following perks with Revolut and Monzo.

The higher the monthly cost of the account, the more perks you get. 

Revolut

• Deliveroo Plus Silver

• Headspace subscription

• NordVPN Standard

• Sleep Cycle Premium

• Freeletics Coach

• Tinder Plus

• Picsart Gold

• Financial Times subscription

• WeWork credits

• ClassPass for gyms

• MasterClass subscription

• Travel insurance, including winter sports cover

• Airport lounge access

• Discounted trading fees

Monzo

• Free treat from Greggs every week

• Free annual railcard every year

• 20% off Pizza Express (Sun-Thurs and other specific dates)

• Free cinema ticket at Vue every month

• Worldwide travel insurance

• Worldwide phone insurance

• UK and Europe breakdown cover

• Discounted investment fees

Is Starling worth considering?

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

The Starling app offers useful features, allowing customers to scan cheques and open current accounts for kids and teens. 

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

However, it is important to note that Starling does not offer personal loans 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.