Monzo, the popular UK-based digital bank, has been making waves in the financial world with its innovative approach to banking. In addition to their personal accounts, Monzo also offers a business account option for small businesses and freelancers. With its user-friendly app and no hidden fees, it has become a top choice for many entrepreneurs. In this article, we will take an in-depth look at the fees and features of Monzo business account.
Overview of Monzo Business Account
Monzo business account is designed to cater to the needs of small businesses and freelancers. It offers a range of features
How to Open a Monzo Business Account
To open a it, you need to be a UK resident and have a registered business. You can apply for the account through the Monzo website or the mobile app. You will need to provide some basic information about yourself and your business, such as your name, address, and company registration number. Once your application is approved, you will receive your Monzo business debit card within a few days.
Features of Monzo Business Account
Monzo business account comes with a range of features that are designed to make managing your finances easier. Some of the key features include:
- Real-time notifications for every transaction
- Ability to set spending limits for employees
- Integration with accounting software such as Xero and FreeAgent
- Instant invoicing and payment tracking
- No foreign transaction fees
- Ability to deposit cash at PayPoint locations
- 24/7 customer support
Monzo Business Account Fees
One of the major selling points of it is its transparent fee structure. Unlike traditional banks, Monzo does not charge any hidden fees or require a minimum balance. Let’s take a closer look at the fees associated with it.
Monthly Fee
It charges a flat monthly fee of £5 for their standard plan. This includes all the features mentioned above and there are no additional charges for using the app or making transactions.
Cash Deposits
While it allows you to deposit cash at PayPoint locations, it does come with a fee. For deposits up to £1,000 per month, there is a 1% fee. For deposits over £1,000, there is a 0.5% fee.
International Transactions
It does not charge any foreign transaction fees, making it an ideal choice for businesses that deal with international clients or suppliers. However, keep in mind that there may be fees charged by the ATM or merchant for using your Monzo card abroad.
ATM Withdrawals
It allows you to withdraw up to £200 per month for free from ATMs. After that, there is a 3% fee for each withdrawal.
Other Fees
There are a few other fees associated with it that you should be aware of:
- Replacement card fee: £5
- Unarranged overdraft fee: £15 per day (maximum of £50 per month)
- CHAPS payment fee: £20
Comparing Monzo Business Account with Other Banks
To truly understand the value of it, let’s compare it with some of the other popular business accounts offered by traditional banks.
NatWest Business Current Account
NatWest offers a business current account with a monthly fee of £6.50. While this is slightly higher than Monzo’s fee, NatWest does not charge any fees for cash deposits or ATM withdrawals. However, they do charge a £2 fee for each foreign transaction.
Barclays Business Account
Barclays offers a business account with a monthly fee of £6. However, they also require a minimum balance of £1,000 to be maintained at all times. They do not charge any fees for cash deposits, but there is a 2.75% fee for foreign transactions.
HSBC Business Current Account
HSBC offers a business current account with a monthly fee of £6.50. They also require a minimum balance of £5,000 to be maintained at all times. There are no fees for cash deposits, but there is a 2.75% fee for foreign transactions.
From the comparison above, it is clear that itoffers a more affordable and transparent fee structure compared to traditional banks.
FAQs about Monzo Business Account
What type of businesses can open a Monzo business account?
It is available to sole traders, limited companies, partnerships, and freelancers.
Can I have multiple users on my Monzo business account?
Yes, you can add up to two additional cardholders to your it for free.
Is there a limit on how much I can deposit into my Monzo business account?
There is no limit on how much you can deposit into your it. However, keep in mind that there may be fees for cash deposits over £1,000 per month.
Can I use my Monzo business account for personal expenses?
No, it is strictly for business use only. If you need a personal account, you can open one separately with Monzo.
Are there any hidden fees with Monzo business account?
No, Monzo prides itself on its transparent fee structure and does not charge any hidden fees.
Conclusion
business account offers a modern and convenient way for small businesses and freelancers to manage their finances. With its user-friendly app, transparent fee structure, and range of features, it has become a top choice for many entrepreneurs. While there are some fees associated with the account, they are clearly outlined and still make Monzo a more affordable option compared to traditional banks. If you are looking for a hassle-free and efficient way to manage your business finances, it is definitely worth considering. Back Continue WriteNext
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