What is Monzo?

Monzo is an online bank allowing people to save towards specific goals by splitting their goals into specific ‘pots’ allowing you to budget better.

Monzo allows you to create multiple pots which enables you to visually see your progress toward different savings goals that you can create. Not only that but you can create savings pots where you can gain interest from money saved in the specific pot.

Monzo Pots are great if you like to create sinking funds for short-term expenditures (month to month) whereas Monzo Savings Pots are great to earn interest on longer-term goals or emergency funds.


Sign up to Monzo to receive £5 when you sign up and make a card payment.

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What is Monzo Bank?

Monzo Bank is an online based bank that can be described as a Challenger Bank, taking on the more established banks in the UK.

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Monzo Bank was founded in 2015 and as of April 2017 Monzo became a fully-fledged bank after acquiring its banking license from Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

Is my money safe with Monzo?

Yes, your money is safe and covered. Monzo is a fully fledged bank after acquiring its banking licence in 2017. Being fully compliant any money with Monzo is protected by the Financial Services Compensation Scheme (FSCS) up to the total of £85,000.

What is Monzo App?

The Monzo app is a simple, easy and quick way to check your account and to check in on your savings pots.

You can download the Monzo app on both Android and IOS.

Currently the Monzo Mobile Banking app has a score of 4.6 out of 5 on the IOS Apple App Store and 4.1 out of 5 on the Android Google Play Store. The app has a total of 92,000 reviews and as you can tell by the rating that the app is successful.

Monzo Android Reviews

The Monzo App will give you live feedback of any spending on the Monzo Card via a speedy Notification allowing instant feedback on spending, stress-free traveling and easy budgeting.

The Monzo App allows you to get easy to access support from their help section on the app for any inquiries and to get support from real people whenever you need it.

The Monzo App allows you to quickly look at what money you have saved, your different pots of savings on the go but also you can easily and quickly view your spending habits from the Trends section.

Seeing your spending trends is a bit like overviewing your budget as it allows quick analysis whether you are overspending or spending to much on certain products or shops. This means you can actively adapt your budget or spending habits without the pain of constantly checking statements.

Monzo Banking App
Google Playstore

What is Monzo Plus/Premium?

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As well as Monzo’s standard account, the online bank offers a Plus & Premium model.

These give varying additional features and offers. These types of accounts maybe for those who wish to get more from their bank for a little added cost. Banking is more than just the ins and outs of monies but the ability to track and get the ‘most bang for your buck’.

The classic Monzo account comes with their famous coral pink bank card but the Plus & Premium comes with not only upgraded cards but perks and benefits.

Monzo Plus

Monzo Plus is the mid tier account which costs £5 a month. With Monzo Plus you get an upgraded card from the famous coral pink to a Holographic card.

The minimum term for this account is 3 months and you must be over the age of 18.

Features of Monzo Plus:

  • Other accounts, in Monzo
  • 1% AER/Gross (variable) Interest
  • £400 fee-free cash withdrawals abroad
  • Custom categories
  • Multiple categories per transaction
  • Virtual cards
  • Advanced roundups
  • Credit tracker
  • Offers
  • Auto-export transactions
  • 1 free cash deposit a month

Monzo Premium

Monzo Premium is the High tier account which costs £15 a month. With Monzo Plus you get an upgraded card from the famous coral pink to a Metal card.

The minimum term for this account is 6 months and you must be between the age of 18 and 69.

Features of Monzo Plus:

  • Phone insurance (provided by Assurant)
  • Worldwide family travel insurance (provided by AXA)
  • Discounted airport lounge access (provided by LoungeKey)
  • Other accounts, in Monzo
  • 1.5%/1.49% AER/Gross (variable) Interest
  • £600 fee-free cash withdrawals abroad
  • Custom categories
  • Multiple categories per transaction
  • Virtual cards
  • Advances roundups
  • Credit tracker
  • Offers
  • Auto-export transactions
  • 5 free cash deposits a month

What are Monzo Pots?

A Monzo pot is a space where you can separate out your money into specific goal orientated pots which is separate from your main balance – what you can spend on your card.

You can use these pots to stash away money from your main balance to ensure you don’t spend it. You can think of these pots as a kind of piggy bank and instead of having multiple piggy banks taking up room, you can have them conveniently on the Monzo app.

Monzo Pots

How To Use Monzo Pots?

 

Creating a Monzo Pot:

  1. Tap on your display photo in the top left corner of the home hub.
  2. Scroll down to the ‘Your Personal Account’ section (blue) or ‘Your Joint account’ (green). Each section depends on where you wish to create the pot.
  3. Tap ‘Create a Pot’.
  4. Name the pot for the specific goal.
  5. Additionally you can create a savings goal.
  6. Put some money in now or wait until later.

Creating a Monzo pot is a simple process but also very customizable. You can change the name of the pot to suit the goal, add or change the amount you wish to save into the pot as a monetary goal and even change the image of the pot which will show up on your home hub.

How To Use Monzo Savings Pots?

Creating a Monzo Saving Pot is very similar to the normal Monzo Pot, expect with the savings pots you are able to earn interest on money saved inside of it.

With the Monzo Savings Pots you are able to pick from a ever-growing number of providers and interest rates to suit your savings goals.

You can select from 3 types of savings pots, Fixed, Easy Access or Easy Access ISA, each come with different rates and terms and conditions.

Monzo Saving Pots
Monzo.com – October 2022

Can I Use Overdraft with Monzo?

You are able to arrange an overdraft with Monzo with limits up to £2,000 and variable rates.

Overdrafts are designed for short term borrowing and generally will cost less if you pay them back quickly.

If eligible you can have an overdraft limit up to £2,000 but this wont apply to everyone. If you decide to apply for an overdraft you can change your limit or cancel your overdraft at any time from the app.

If you wish to cancel but have used your overdraft you will be required to pay any amount borrowed back, plus any interest.

Monzo wont charge you any extra fees for going into your overdraft and you will get notified if you go into your overdraft. Enabling you to quickly adjust your finances if needs be.

Monzo.com Overdrafts.

What is Monzo Trends?

Monzo Trends gives a summary of the overview of your current finances and is a tool which can help you budget your outgoings month to month.

It aggregates your income, spending and committed spending, such as scheduled payments and bills, as well as money set aside in pots or savings accounts.

When you spend money on your Monzo card, you are able to set what kind of transactions they are. By putting these payments into categories you are able to see exactly how you are spending your money and identify any trends in your spending habits.

Upgrading to Monzo Plus gives you an interactive spending graph so you can spot your spending habits all in one place.

As well as viewing your spending habits you are able to view a section which excludes your spending and gives you specific information for other money habits such as money transfers, savings, charitable giving and more.

So not only can Monzo Trends help you understand your spending habits but also your saving and charitable habits.

Monzo Trends

Monzo Overview

Hopefully this article has given you all the answers to the question ‘What is Monzo?’ and has helped you understand what Monzo has to offer.

Monzo is a great challenger bank which offers many features to help you with saving goals and budgeting all in one place.

The Monzo Pots are innovative and is a great way to visualise and to separate different savings goals, whether they be short or long term.

An additional benefit from using Monzo is that time to time the card will require you to put in your pin, rather than tapping the card. This can help you mentally take note of what and how you are spending your money.

The notification of spending money means its easy to keep track of day to day spending and keeps you conscious of your finances.

You may encounter when spending money online that you are required to log into the app and approve certain spending. This is an additional security to help you stay safe while buying online.


Sign up to Monzo to receive £5 when you sign up and make a card payment.

Sign up to Monzo


If you are worried about online banking and savings then check out our article called ‘Are Online Savings Accounts Safe’ to find out more. ‘

Are Online Savings Accounts Safe?

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