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Revolut and Monzo both offer money transfer services for customers who want to send cash overseas. But, if an overseas money transfer is on your to-do list, which of the two might suit you best?
We’ve analysed the money transfer offerings of these two digital financial brands to see how they stack up in terms of the variety of currencies available, exchange rates and fees and charges, plus payment security, among other factors.
Revolut vs Monzo: at a glance
Revolut and Monzo are both app-based financial providers, set up within the last 10 years. Neither has branches or a high street presence, so they’re likely to appeal only to customers who are happy to make financial transactions solely online or via the app.
Revolut offers personal and business accounts, with a debit card for spending, which is fee-free overseas. Revolut accounts can be linked to Apple Pay and Google Pay.
It has a range of accounts on offer, including one free account and four premium accounts which charge a monthly fee. It offers money transfer in 29 currencies and to 160 different countries. Money can be sent directly to another Revolut account for free, via bank account or card transfers.
One of the main differences between Revolut and Monzo, is that Monzo is authorised and regulated as a bank by the Financial Conduct Authority, giving its customers protection on their deposits up to £85,000 per person under the Financial Services Compensation Scheme.
It also means Monzo accounts can offer all the day-to-day banking services of a current account, including – eligibility permitting – an overdraft.
In contrast Revolut is authorised by the FCA under electronic money regulations. It is not a bank and is not regulated as such, which means customers’ money does not have FSCS protection. Its accounts also don’t offer a full range of bank account services and there is no overdraft facility, for example.
Monzo offers personal and business current accounts with cards that offer fee-free spending overseas.
For personal banking customers there is one free bank account, or the choice of two accounts with a monthly fee. The benefits available with the different bank accounts depend on whether you use Monzo as your primary current account, or if it is a secondary account. Monzo accounts can be linked to Apple Pay and Google Pay.
Customers with cash held in the free bank account earn interest of 4.1% (variable). The interest rate is 4.6% on the premium accounts. Monzo also offers a small range of fixed rate savings and investment options.
Monzo has partnered with the specialist money transfer provider Wise to enable its bank customers to make efficient and lower-cost overseas transfers. Wise offers transfers in 40 different currencies and to 160 countries.
How do Revolut and Monzo’s account services compare?
Monzo has three account options: Monzo current account (no monthly fee), Monzo Plus (£5 per month fee) or Monzo Premium (£15 per month fee).
Customers can manage their day-to-day banking, see a breakdown of their spending and use budgeting tools in the app.
Monzo offers overdrafts up to £2,000 for all eligible banking customers. The interest rate charged depends on the customer’s credit history and score, but, if successful, applicants will be offered a rate of 19%, 29% or 39%.
Monzo doesn’t charge a foreign transaction fee on debit card spending abroad. Limits and charges on cash machine withdrawals (in the UK and overseas) depend on how you use your Monzo account. If it is not your main current account cash withdrawals are limited to £250 per month on the standard current account (3% fee on withdrawals over and above this).
The free cash withdrawal limit is higher for Monzo Plus and Monzo Premium customers.
Revolut has five levels of account. Its free account offers a free debit card with fee-free spending overseas (there is no overdraft facility available on any account). But as Revolut is not a bank, its accounts are typically used by customers who want to make use of the money transfer services at advantageous rates.
Customers can make up to five cash withdrawals, or withdraw up to £200 per rolling month (whichever is reached first) with no withdrawal fees. The fee is 2% thereafter. Customers can make money transfers in 29 currencies from their account.
Revolut’s fee-charging accounts include Plus (£3.99 a month), Premium (£7.99), Metal (£14.99) and Ultra (£45 a month). Each account offers extra added perks and benefits which increase the more you’re paying for the account.
The added benefits include airport lounge access, shopping discounts, baggage insurance and investment benefits, such as commission-free share trading, among other things.
How do the money transfer services of Revolut and Monzo compare?
Both Monzo (using its partner Wise service) and Revolut offer a broad range of currencies for money transfer to countries across the globe.
Exchange rate
Monzo customers will get the exact mid-market rate on currency exchange transactions, as provided by Wise. This means they’ll get a highly competitive exchange rate. But note, Wise makes its money back through its fees (more on fees below).
In contrast, Revolut uses the interbank exchange rate, which tends to be less competitive than the mid-market rate used by Monzo (Wise).
Transfer fees
The fee charged by Wise for a transfer will vary depending on the specific currency transaction (amount and currency, plus method of the transfer), but charges range from 0.15% to 2%. There is also a Monzo partner fee applied by Wise at 0.3%.
Currency exchange is fee-free for Revolut customers on weekdays up to a maximum limit of £1,000 per month. There is a 1% charge for exchanges made at weekends or on public holidays.
Bank transfers within the Single Euro Payments Area (SEPA) are free but a variable fee applies on transfers outside the SEPA. There are fees for card transfers, which vary depending on the size of the transaction but could be up to £5, for example. Transfers are free and instant to other Revolut customers.
Speed of transfer
WIth Wise’s service the speed of your transfer will depend on how you make the payment, whether it is a bank or credit card transfer, for example. Transfers by debit and credit card are the fastest. The currency and destination country will also have a bearing on how quickly the money will arrive.
Wise has three transfer speed options at different prices:
- Advanced transfer – funds arrive within one to three working days
- Low cost transfer – funds arrive within three to 24 hours
- Fast and easy transfer – funds arrive within 3 to 5 hours
For Revolut users the standard time for international currency transfers is one to two working days, depending on the type of the transaction (bank transfer or card transaction, for example) and also the receiving bank. Some transfers can take up to five days, for example.
Faster transfer times are available to Revolut customers who hold ‘premium’ or monthly-fee accounts, such as the Premium or Ultra account.
For a more detailed comparison of Revolut and Wise’s money transfer services see our review comparing the two services.
Revolut vs Monzo: Summary of services and pricing
What do the reviewers think?
Both Monzo and Revolut score highly on Trustpilot for customer experience. Revolut has a slightly higher score of 4.3 out of 5, compared to 4.1 for Monzo.
Consumers praise the Revolut app for being simple to use and having very low costs for money transfers and exchange.
For Monzo, customers said the app is flexible and reliable and that customer support is excellent. They also highlighted the benefits of the app’s budgeting features.
Monzo’s banking services get a 73% score for customer experience in the latest ratings on Fairer Finance’s website. But as Revolut is not a bank it doesn’t appear in this ranking.
Who does Revolut’s service suit?
Revolut is well worth considering for frequent travellers or those who spend time overseas. While Revolut doesn’t offer a full banking service, as the Monzo current account does, it will suit those who need an account for travel and foreign exchange services at preferential rates, but who don’t need to use it as a day-to-day bank account.
But while fee-free debit card spending has no limits overseas, there is a £1,000 limit on cash withdrawals on Revolut’s standard account, which could be a bit limited for some customers.
Consumers who want extra perks, such as travel discounts, cashback on holiday bookings and discounted airport lounge access, will also like Revolut. Although it tends to be the fee-paying accounts, such as Metal and Ultra, which offer the best add-on benefits.
Who does Monzo’s service suit?
Monzo offers a full banking service, which could suit consumers who want a fresh take on banking from a challenger provider, including sophisticated budgeting tools and an overdraft for eligible customers.
The Monzo standard account can work well if it is used as your main current account (there are certain stipulations, such as crediting the account with at least £500 a month or using it for at least one direct debit).
If it’s your main current account you get access to fee-free debit card spending in the European Economic Area with no limits, for example. The fee-free ATM withdrawal limit is £200 elsewhere in the world, whether it is your main bank account or not.
Monzo uses Wise for money transfer. Wise is well respected and known for being one of the best value money transfer providers, with competitive exchange rates and low fees.
Should I choose Revolut or Monzo?
Which account is right for you will depend on how you want to use it and whether or not you’re looking for full banking services or just competitive currency rates and money transfer.
Take time to compare the different services on offer to work out which will suit your needs best. The fees and charges for money transfer and currency exchange will vary depending on the currency you want to exchange and how you’ll be sending the money, for example.
While one provider may work out best for one type of transaction, this may not be the case for a different size of money transfer in another currency.
