Monese Review 2024 – Forbes Advisor UK

Monese at a glance

In 2014, Monese founder Norris Koppel moved from Estonia to the UK. But with no UK credit history and no utility bills in his name, he struggled to open a mainstream bank account.  To get around this stumbling block Koppel set up Monese – an app-only bank accessible to users throughout the UK and Europe.

Monese has expanded rapidly since its launch in 2015 and now offers current accounts (single or joint) in pounds Sterling or euros with a Mastercard debit card. The app offers a range of budgeting tools and a simple tool to help build credit within the UK. 

Account fees vary according to the levels of functionality offered – more on this below.

While the Monese app holds wide appeal, it can particularly benefit foreign nationals living and working in the UK, as well as UK expats in Europe, freelancers and the ‘unbanked’ who can find it difficult to access the UK banking system. However, existing UK bank accounts also can be linked to the Monese app which is compatible with Apple Pay and Google Pay.

There’s no credit check to open a Monese account. Applicants must be aged 18 or over and resident in the UK or in one of 31 European Economic Area (EEA) countries. Applicants require only an email address and phone number and one photo ID document, such as a passport or driving licence.

Monese is authorised by the Financial Conduct Authority (FCA) as an e-money institution but it is not part of the Financial Services Compensation Scheme, which protects customer deposits up to £85,000 per institution. Instead, Monese uses a facility called ‘safeguarding’, where customer money is kept separate from its own funds in a third-party, secure bank account.

Monese pricing

There are three account plans with Monese – Simple, Classic and Premium. Here’s a rundown of each:

• Simple: No monthly charge. Get a basic account in pounds Sterling, euros or Romanian Leu. Fee-free domestic transactions, direct debits and other recurring payments. International transfers charged at 2%. Foreign card spending up to £2,000 per month free. Free debit mastercard and free cash withdrawals up to £100 per month (charges of 2% thereafter). Top ups into the account of cash or via debit card are charged at 3.5% and 0.3% respectively. Replacement card fee is £4.95
• Classic: £5.95 per month (or £49.95 if billed annually). Everyday spending account with free domestic transactions and transfers, direct debits. International transfers charged at 0.5% and unlimited free foreign card transactions. Free debit Mastercard and unlimited free cash withdrawals. Debit card top-ups into the account are free. Cash top-ups are free up to £400 per month. Additional features include free accident, sickness and unemployment cover (self-employed workers are excluded) up to £1,500 and free insurance on purchases up to £2,500 per year (£1,000 max per claim). Replacement card fee is £4.95
• Premium: £14.95 per month (or £124.95 if billed annually). Comprehensive account plan with lowest transaction fees and highest allowances, maximum insurance cover levels and priority customer support. All domestic and international transfers and card payments are fee-free. Cash withdrawals are free up to £1,500 per month and cash top ups into the account are free up to £1,000 per month. Debit card top ups are free and there is no replacement card fee.

Benefits of Monese

One of the main advantages of the Monese account is you can have it up and running within minutes. After downloading the app to your mobile phone and applying with one piece of photo identification – you’ll be ready to go.

There’s no credit check and no minimum deposit. It’s also free to have a joint account with Monese, which could be useful for couples and partners sharing the same funds, for example.

You can make international payments quickly and easily – although charges apply with the Simple and Classic accounts.   

All accounts offer access to interest-paying savings accounts through online savings platform Raisin. They also offer savings pot tools and a round-up feature, which collects any ‘spare change’ from transactions and stashes it away into savings.

A credit builder tool is available to all Monese account holders who want to build up a credit history and boost their credit score. It involves making the same regular payment in the app every month (from £2.50 per month). Monese then reports the payments to the credit reference agencies helping you build up a credit profile. After 12 months account holders get their savings back. 

Payment protection insurance and accident, sickness and unemployment (ASU) insurance cover is also free on the Classic and Premium accounts (hospital payment benefit only for self employed workers), subject to certain payout limits as well as other terms and conditions.

Monese accounts can be linked to Avios accounts so account holders can keep tabs on their points balance. There’s also a referral rewards scheme – Invite and earn – where customers can earn up to £10 each time they refer a friend or family member to sign up to a Monese account (£5 for each account open, plus a further £5 for a £500 card spend).

Monese offers multilingual (15 languages) customer service on email and live chat. There is also a detailed FAQs section on the website.

Is Monese the right choice?

Anyone struggling to get a mainstream bank account will welcome the ease and speed of opening a Monese account. It’s convenient and, with no credit check or minimum deposits, it’s accessible to a wide spectrum of consumers in the UK and EEA region. There are multi currency options including Sterling, Euro and Romanian Leu.

You can link a Monese account to other bank accounts to make free transfers and it can also link up with Apple Pay and Google Pay. The Select and Premium level accounts have lower or no transaction fees – including for overseas payments – but they do charge high monthly fees.

While the Simple account does not charge a monthly fee, it limits free cash withdrawals, has higher charges on foreign transactions and payments into the account will be charged.

Whether a Monese account will offer value compared to offerings from other app-based banks will depend on your needs and how you bank day-to-day. While benefits are considerable for certain customers, they will need to be weighed up against the various charges.