Monzo Singapore: Rates, fees and how it works

Monzo is a fully licensed digital bank, based in the UK. With a Monzo account you can save or spend your money, and access a loan if you need it, all from your phone. There are no physical Monzo branches so all customer service and support is carried out online or via the app.

This guide walks through all you need to know about Monzo including fees, rates and limits, and how to use your Monzo account when you travel.

Can you use Monzo in Singapore?

An important point to start off with. You can’t open a Monzo account if you’re in Singapore.

That’s because Monzo’s eligibility criteria means that you have to be a UK resident to get your account up and running at the time of writing this article.

If you already have a Monzo account and are travelling in Singapore, you’ll still be able to access and use your account as normal. Otherwise, keep watching for Monzo’s planned international launch in future.

Table of contents:
What is Monzo and how does it work Fees, rates and limits Using Monzo abroad Pros and cons Frequently asked questions

What is Monzo and how does it work

Monzo offers a range of accounts, including current accounts, business accounts, joint accounts and youth accounts which are aimed at people aged 16 and 17.

Here’s what you need to know.

Monzo current accounts

Monzo has 3 tiers of current account¹:

• free standard account,
• Monzo Plus which has a £5/month fee,
• and Monzo Premium which costs £15/month.

Standard features include Monzo’s expense tagging which shows you what you’ve spent across different categories, savings pots to keep you on track with your money, instant notifications and fee free UK bank transfers.

If you choose the Plus account you’ll get all of this as well as additional offers, savings tools and interest on your balance.

Premium customers get extra perks like free insurance and a better interest rate for Monzo savings.

Monzo business

Small business owners can choose the Monzo Lite account which is free to open, or the Pro account which has a £5/month fee².

Both accounts benefit from most of the features of the regular Monzo personal account, and the Pro account also offers tax pots, integrated accounting and other business friendly solutions.

Monzo joint accounts

If you already have a Monzo account you can add a joint account without needing to go through further ID checks³.

You’ll get a card for each account holder - and can track spending by individual, as well as accessing many of the Monzo regular account features.

Monzo 16-17 accounts

Finally, Monzo offers an account for 16 and 17 year olds which has the same features as the adult account aside from a few age related variations⁴.

You can’t use the account to gamble for example - as that’s illegal as a minor - and you can’t access an overdraft either.

That makes this a perfect way for younger customers to get the benefits of a full bank account with few of the risks.

Fees, rates and limits

As with any account, you’ll need to check the terms, conditions and fees carefully before you choose a Monzo product. Here are some key facts you’ll want to know.

Monzo fees

Monzo charges for some services, although opening your account, sending money within the UK, and receiving your first debit card is free. Some Monzo fees depend on whether you meet certain eligibility criteria.

For example, you can make higher value ATM withdrawals for free if you:

• Have one active direct debit on your Monzo account, and had at least £500 paid into the account in the past 35 days
• OR you’ve received certain government payments into the account in the past 35 days
• OR you’ve received a student loan payment into your Monzo account in the past 8 months
• OR you have a joint account and the other account holder meets one of the above conditions

Here are the key costs you’ll want to think about:⁴

Service	Monzo fee
Sending and receiving international payments	Sending international payments is arranged via Wise using the mid-market exchange rate. There is a small transparent fee to pay. It is not possible to receive international payments to your Monzo account
Cash withdrawals in the UK	If you meet the criteria listed above, there is no charge. If you do not meet the criteria you’ll be able to withdraw up to £250 in a 30 day period fee free, with a 3% charge after that
Cash withdrawals in the EEA outside of the UK	If you meet the criteria listed above, there is no charge. If you do not meet the criteria you’ll be able to withdraw up to the currency equivalent of £250 in a 30 day period fee free, with a 3% charge after that
Cash withdrawals outside of the UK and EEA	You can withdraw up to the currency equivalent of £200 in a 30 day period fee free, with a 3% charge after that

Monzo limits

There are a few limits on some Monzo accounts - such as the youth account which does not allow payments to be made for activities which may be illegal for under 18s.

You’ll also find you can’t receive international payments, and won’t get a cheque book with your Monzo account.

It’s worth checking out the terms for your specific account if you’re not sure about the limits which may apply.

Monzo rates

It’s good to know about the interest, overdraft and foreign exchange rates you can expect with Monzo. Here are the details at the time of writing:

Rate type	Monzo account rate
Interest on savings⁶	There are both fixed term and easy access savings options available, which come with varied rates. Easy access savings can earn 0.15% while fixed term savings may accrue up to 0.53%
Interest payable on an overdraft	If you arrange an overdraft in advance you’ll be shown the rate which will apply when you confirm the transaction. If you accidentally overspend and go into an unarranged overdraft you’ll pay an interest rate of 33.4%, with a monthly cap of £15.50 on these charges⁷
Exchange rate used when spending abroad	If you spend money overseas with your Monzo card you’ll get the Mastercard exchange rate.

Using Monzo abroad

You can use your Monzo card to spend while you travel, and make ATM withdrawals in foreign currency. You’ll get the Mastercard exchange rate with no markup - this is usually a pretty fair rate which changes day to day according to market fluctuations.

There may be extra costs added by local ATM operators, which are worth watching out for to reduce your overall spending while overseas.

One other important point is to watch out for DCC- dynamic currency conversion - while you’re abroad.

This is where you’re offered the opportunity to pay in your home currency instead of the local currency wherever you are.

It sounds harmless enough, but choosing to pay in pounds will mean you don’t benefit from the Mastercard rate, and can end up paying extra fees levied by the merchant or ATM operator.

Always pay in the local currency wherever you are to stay on the safe side.

Overseas payments with Monzo

Monzo recommends Wise as the best way to make international payments using the mid-market exchange rate with no markups.

Wise is a modern currency and international payment service which takes a different approach to most banks and traditional providers. You’ll find low price personal and business payments, as well as the free online Wise multi-currency account.

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Pros and cons

Still wondering if Monzo is for you? Here are some benefits and disadvantages to think about.

Pros:

• Range of account products for business and personal customers
• Simple, low fees - with free account options if you want them
• Good exchange rates when sending money abroad via Wise and shopping internationally using your Mastercard
• Smart saving and budgeting tools
• Safe - your money is backed to the full extent of UK government guarantees

Cons:

• If you don’t already have an account you won’t be able to get started with Monzo in Singapore at this point
• 3% fee for excess and international ATM withdrawals
• Face to face service is not an option - support is in app only

Frequently asked questions

Finally, a few common questions - and the answers you need to know.

Do I need a regular bank account to get a Monzo account?

Your Monzo account and card are independent of other accounts you might hold. There’s no need to have a separate account if you don’t want one as you can access a relatively full range of services via Monzo.

How safe is Monzo?

Monzo is backed by the UK government’s Financial Services Compensation Scheme (FSCS) which means your balance up to £85,000 is protected. Monzo also uses industry standard - or better - approaches to protect your money and reduce fraud.

Does Monzo affect credit?

You can check your eligibility for a loan with Monzo without impacting your credit score.

Does Monzo have a business account?

Monzo offers 2 different business account products for small business owners. You can open a Lite account for free, or opt for the Pro account for a monthly fee.

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So there you have it. Monzo is a trusted and well liked bank in the UK - in fact, in a recent report, 86% of people said they’d recommend Monzo to their friends.

That’s better than any of the other banks involved in the survey.

With over 4.8 million users in the UK - and growing - Monzo is eyeing international expansion and may become available overseas in future. So while you can’t open an account from Singapore just now, it’s good to know there are plans afoot to bring Monzo’s service to a wider global audience in time.

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Sources:

1. Monzo - Monzo current account
2. Monzo - Business account
3. Monzo - Joint account
4. Monzo - Monzo for 16-17 year olds
5. Monzo - Fee information
6. Monzo - Savings
7. Monzo - Terms and conditions
8. Monzo - Main page

All sources checked on 25th of November 2020