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Monzo vs Revolut
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Monzo vs Revolut: Which Digital Bank Is Better

Fintech is now a highly-rated and widely sought-after industry in the world. As a result, many investors and companies are starting to leverage the industry and setting up services that change how we think about banking and finances. Monzo and Revolut are such services providing digital alternatives to traditional banking as we know it. This innovation is on track to make banking life easy and much more convenient for millions of users worldwide. In this article, we’ll examine the similarities and differences between both companies, to help you make the best possible choice.

About Monzo

Monzo is an online bank in the United Kingdom that makes life easier and not more difficult for users. Monzo started in 2015 as one of the earliest new app-based challenger banks in the UK. Currently, over 5 million users work with Monzo to manage and spend their money worldwide.

The digital bank received its banking license in 2017, making it authorized and regulated by the PRA and FCA. It provides users with an IBAN for international payments, helps users track expenses, and make payments simply using a link.

Some of the features that endear Monzo to the heart of users include its budgeting features and ease of use when you travel abroad.

About Revolut

Revolut, like Monzo, was also founded in 2015 in the United Kingdom. It caters to about 15 million users worldwide and is an online alternative to traditional banks. Revolut prides itself as one app that caters to everything money-related.

The digital bank also allows you to pay and get paid anywhere you are worldwide; you also get the opportunity to split bills. With Revolut, you can monitor all your banking accounts in one place and even trade using cryptocurrency.

A bank account with Revolut comes with an IBAN and BIC, just like at a physical bank. However, Revolut is licensed as a Lithuanian bank. A feature that appeals to many Revolut users is its investment feature, as you can create a portfolio on the app and trade almost immediately with as little as $1.

Monzo vs. Revolut: Fees

Monzo charges fees for some services depending on how the account is used. Card payments anywhere in the world are free. However, withdrawals in the UK and EEA are only free up to £250 but cost 3% of each withdrawal after. You can also skip the charges if Monzo is your main bank and not a spending account. Monzo Plus is also charge-free.

Cash deposits on Monzo cost £1 to help cover the costs of using the app. There are also no charges on card replacements if the card has been stolen, frauded, or expired; otherwise, card replacements attract a £5 fee.

Revolut, on the other hand, runs on four different pricing plans. The standard plan is free, and all its benefits come with the other three plans. The other plans on Revolut include Plus (£2.99/mth), Premium (£6.99/mth), and Metal (£12.99/mth).

Revolut doesn’t charge fees when you make a cash deposit into your account, but it charges a £2 fee per withdrawal. You also get only ten free transfers, and after that, you’ll be charged for every transfer. Again, you have a £1000 transfer limit, then they will charge you a 0.5% commission fee for every transaction after you have reached it.

Monzo vs. Revolut: Main Features

Both digital banks are quite unique with their array of features.

Monzo has a feature called Pots. This feature allows users to arrange their finances in different categories/Pots for better financial organization. Money in these Pots can be used to do anything, from saving to paying bills. Saving with Monzo Pots earns you interest of about 1.13%.

Another feature, Traveling with Monzo, makes it easy to access your money in the local currency anywhere you are on the globe. Every Monzo plan comes with its debit card, exclusive to it.

You can simply use your Monzo card to transact without any extra fees to the exchange rate. However, some fees are charged for withdrawals after the £200 per 30 days limit has been reached.

In addition to its regular Send, Spend, and Save features, Revolut also offers various cards for users, both virtual and physical. With Revolut, you also enjoy spending at the local exchange rate with no added fees. Users can also make investments, store crypto, trade shares, and buy gold and silver using the app, making it easy to move money around for little to nothing.

Security

Monzo uses cutting-edge technology to protect your account from fraudsters and phishers. You get notifications for every transaction, and you can protect your account with a Touch ID, Face ID, or PIN. You also have the option to freeze your account whenever you think it’s necessary.

Monzo is a fully regulated UK bank, protected by the Financial Services Compensation Scheme, and licensed for operation by the Prudential Regulation Authority and the Financial Conduct Authority.

Revolut also keeps your funds safe using safeguarding and not the Financial Services Compensation Scheme. This is because the online bank is an e-money institution using a license from Lithuania.

It also provides end-to-end security to ensure your funds stay safe and secure all payments. They also provide PIN and Security features and the opportunity to freeze your account when you need to.

Ease of Use

Both Monzo and Revolut are designed to take away the stress of traditional banking and so have created their apps to be very user-friendly. As a result, most functions are easy to carry out by using only simple taps to perform them.

They are intuitive and easily navigable, so performing transactions and other related money-matters is a breeze. They’re just like using a regular, everyday app.

Other Features

Other exciting features on Monzo include its energy-switching and bill-splitting feature. Monzo also offers a Personal and Business account. Monzo now also sports a new Borrowing feature that allows users to borrow funds and pay later in up to 3 installments, interest-free.

Revolut gives users an incredible travel experience with its Stays feature. Stays makes it easy for users to book accommodation on their trips by providing the essentials -- travel card, insurance, and hotel listings. Revolut offers a Personal, Business, and Company account.

Conclusion

Monzo and Revolut are both top-notch, easy-to-use, feature-laden UK digital banks. They make banking easy right from the comfort of an app. With any of these apps, you can bank with ease safely and securely all around the world for free or at very low charges. You also get virtual and physical cards to make your experience even more seamless.

If you’re wondering which of the apps to go for, you can quickly figure this out based on your personal banking needs. You can also try our comparison tool to help you find the best digital bank that you can use.

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