What’s the Difference Between Monzo and Revolut?
Monzo vs Revolut: what is better? Monzo and Revolut are both digital banking platforms that have gained significant popularity in recent years. They provide users with a range of innovative features, competitive exchange rates, and convenient mobile apps to manage their finances effectively.
As we know, digital banking has become increasingly popular due to its convenience, accessibility, and user-friendly interfaces. Traditional banks often come with numerous fees and complex processes for basic tasks like opening accounts or transferring money internationally. In contrast, Monzo and Revolut offer seamless experiences through their intuitive applications. In our Monzo vs Revolut comparison, we will highlight the most important aspects of each. Monzo or Revolut for travelling: what is better?
| Benefits of Digital Banking | Description |
| Convenience | Access to banking services 24/7 from anywhere using a smartphone or computer, eliminating the need to visit physical branches. |
| Cost Savings | Reduced or no fees for various transactions, lower overhead costs for banks, and potential savings on transportation and time. |
| Enhanced Security | Advanced security measures such as encryption, multi-factor authentication, and real-time monitoring reduce the risk of fraud and unauthorized access. |
| Accessibility | Increased access to financial services for individuals in remote or underserved areas without physical bank branches. |
| Better Account Management | Easy tracking of transactions, real-time account balance monitoring, and simplified management of multiple accounts in one place. |
| Mobile Payments | Quick and seamless payment options through mobile wallets, contactless payments, and person-to-person transfers, enhancing transaction speed and convenience. |
| Financial Tools | Access to budgeting tools, financial planning calculators, and personalized insights for better money management and financial decision-making. |
| Eco-Friendly | Reduced paper usage through electronic statements and digital transactions, contributing to environmental conservation efforts. |
Features and Services Offered by Monzo
Account types
So, what is Monzo and is Monzo good? Let’s first take a look at the account types offered.
- Personal account: Designed for individual users who want to manage their personal finances.
- Joint account: Allows two people to share an account for managing shared expenses such as bills or groceries.
Spending tracking and budgeting tools
One key feature of Monzo banking is its ability to categorize transactions automatically, which helps users understand how they spend money on various categories, such as dining out or shopping online. The app also provides real-time updates on spending habits so you can set budgets accordingly.
Fee structure for international transactions
When it comes to international payments using your card abroad or making foreign currency transfers within the app itself, there are no hidden charges involved apart from interbank exchange rates provided by Mastercard®.
Integration with third-party services
With open APIs (Application Programming Interface), Monzo banking allows integration with other financial management apps, which allows customers greater control over all aspects related specifically towards finance.
Features offered by Revolut
Account types
There are three ways to open Revolut account. When choosing Monzo or Revolut for travelling, account types is the first thing to focus on.
- Standard – Free basic current account.
- Premium – Offers additional benefits, including travel insurance & disposable virtual cards at £6/month.
- Metal – Provides exclusive perks, including unlimited access lounge passes and up to 1% cashback in selected currencies for £12.99/month.
Multi-currency wallets with interbank exchange rates
An open Revolut account allows users to hold multiple currencies within the app through their multi-currency wallets. Users can switch between different currencies at any time, enabling them to save on currency conversion fees when travelling abroad or making international payments.
Cashback rewards on certain purchases
Certain retailers offer cashback rewards of up to 10%, which are credited directly back into your account. This feature is available exclusively for Premium and Metal accounts.
Insurance options available
Revolut offers various insurance packages such as travel insurance, medical & dental coverage, device cover (for smartphones), purchase protection (covering accidental damage), etc., depending upon the type of subscription you have.
Monzo vs Revolut: What’s the Difference?
What’s better, Monzo or Revolut? There are some key differences between the two when it comes to fees, currency exchange rates, international transactions, user experience, customer support efficiency and security measures.
Fees
When comparing account maintenance fees or transaction charges on both platforms – Monzo and Revolut – it becomes apparent that each has its own fee structure in place.
As we have mentioned, Monzo banking offers three types of accounts: Basic (free), Plus (£5/month), which includes additional features like travel insurance and interest on savings; Premium (£15/month), which provides higher withdrawal limits abroad along with other benefits like phone insurance.
On the other hand, most basic functionalities provided by Revolut come free of charge, while premium plans start at £2.99 per month for standard users or £6.99 per month for metal members who enjoy extra perks such as cashback rewards.
Currency Exchange Rates
Currency exchange rates play a crucial role for those who frequently make international transactions or travel abroad.
Monzo uses Mastercard’s foreign exchange rate with no markup added during weekdays but levies a 0-3% markup on weekends depending upon different currencies being exchanged due to market volatility risks involved during these periods.
Revolut claims to use interbank exchange rates without any markups during weekdays up until certain thresholds are set based on your chosen plan type (standard/premium/metal). Beyond these thresholds, or if you’re exchanging money on weekends/holidays, then slight percentage surcharges may apply depending upon factors like amount converted/currency pair selected/timeframe, etc., so do check terms before making larger transfers through them, especially outside regular business days/hours!
International Transactions – Fee structures
In terms of foreign currency payments, Monzo and Revolut differ in their fee structures.
There are no Monzo fees for spending abroad or making international transfers up to certain limits. However, there is a 3% charge applied on withdrawals exceeding £200 per month while travelling outside the European Economic Area (EEA).
Revolut offers free unlimited FX transactions within its set thresholds based upon the account type chosen: standard (£5000/month), premium (£10,000/month) or metal accounts with higher limits. A small percentage surcharge may apply if you exceed these monthly allowances, but it’s still more cost-effective than traditional banks for frequent travellers.
User Experience Comparison: Ease-of-use, Customer Support & Security Measures
Both platforms offer intuitive mobile apps that are easy to navigate and provide a seamless user experience. They have various security measures in place, such as two-factor authentication and biometric login options like fingerprint recognition on supported devices, ensuring enhanced data protection for customers’ financial information.
When it comes to customer support efficiency, Monzo has been praised for its responsive live chat feature, which allows users to get immediate assistance from customer service representatives.
In contrast, Revolut provides an AI-powered chatbot along with email support depending on your query type – both offering prompt responses most of the time. Still, some issues might require human intervention where Monzo seems stronger overall, owing partly to a greater focus towards the UK market initially before expanding internationally, unlike Revolut, which has experienced rapid global growth since its inception!
How to Choose the Right Digital Banking Platform
With a plethora of options available in the market, choosing the right digital banking platform can be overwhelming. However, by considering certain key factors and asking yourself important questions, you can make an informed decision that aligns with your financial goals and needs.
Assess Your Requirements
Start by evaluating what features are essential for your everyday banking activities. Consider whether you need basic services such as online bill payment or if advanced capabilities like budgeting tools or investment management are necessary. Understanding your requirements will help narrow down potential options.
Security Measures
Security should be a top priority when selecting a digital banking platform. Look for platforms that offer multi-factor authentication (MFA), encryption protocols, secure connection methods (e.g., SSL/TLS), and robust fraud detection systems to protect against unauthorized access or data breaches.
User-Friendly Interface
A user-friendly interface is crucial for seamless navigation through various functionalities offered by the digital bank provider’s website or mobile app. Consider how intuitive their design is and check reviews from existing users regarding ease of use.
Integration with Other Financial Tools
If you use other finance-related apps or software like personal finance managers or tax filing applications, ensure compatibility between these tools’ APIs (Application Programming Interfaces) and those provided by the chosen digital bank platform to facilitate smooth integration of data sharing across platforms.
Examine Fees & Charges
Different banks have varying fee structures associated with their digital services, such as ATM usage fees, overdraft charges, international transaction fees, etc. Evaluate each option carefully to understand which one offers competitive rates while providing value-added benefits aligned with your preferences.
Customer Support Options
Consider customer support availability – Is it 24/7? Do they provide multiple channels – phone support/chat/email? Having reliable customer support is crucial when encountering any issues or concerns with your digital banking platform.
Mobile Banking Capabilities
With the rise of smartphones, mobile banking has become increasingly popular. Ensure that the chosen digital bank offers a feature-rich and user-friendly app for mobile devices compatible with your operating system (iOS/Android). Check whether it allows you to perform essential tasks like fund transfers, bill payments, and check deposits conveniently through your smartphone.
Additional Features & Services
Consider additional features offered by different platforms, such as financial education resources, investment options (stocks/bonds/mutual funds), automatic savings plans, etc., which could further enhance your overall banking experience.
Wrapping Up
So, what’s better, Monzo or Revolut? The truth is that choosing the right digital banking platform involves careful consideration of various factors, including security measures, user interface design, integration capabilities with other financial tools and associated Revolut/Monzo fees/charges structure, among others.
Take time to evaluate each potential option based on these considerations while also considering personal preferences and requirements. By doing so diligently, you are more likely to find a suitable solution that meets all your needs effectively in today’s digitally-driven world.
