Summary: If you are trying to decide between Starling Bank and Monzo Bank, you're not alone - these two digital-only banks have been gaining popularity in the UK in recent years. But which one is right for you? To help you make a decision, we've compared the two banks on key factors like fees, features, and customer service.
If you are looking to get started quickly, our team recommend Starling Bank over Monzo Bank. This is because they offer lower fees, better customer service and more account options for users in the UK and Europe.
Starling vs Monzo | Best Digital Bank
- Starling has $0 account fees compared to Monzo.
- Starling offers more account options than Monzo.
- Starling offers better GBP and EUR deposit rates than Monzo.
Starling and Monzo Bank Overview
Starling Bank is a digital-only bank that offers personal, joint, and business accounts. There are no monthly fees, and you can get instant notifications of your spending via the mobile app. You also get access to a network of fee-free ATMs.
Monzo Bank is also a digital-only bank, and offers personal, business and joint accounts. Similar to Starling Bank, there are no monthly fees, and you can get instant notifications of your spending via the mobile app. Monzo Bank also offers a network of fee-free ATMs.
Starling vs Monzo: Account Options
Starling Bank offers the widest variety of accounts including Personal, Joint, Euro, Child Debit Cards, Teen Accounts as current accounts. Their platform also supports Business Banking for companies and sole traders. You can also get access to USD, Euros and GBP through the Starling Business Banking accounts.
Monzo Bank has two basic account options - Business and Personal. The Monzo Flex personal account is an easy way to earn up to 2% interest on GBP deposits with a top-tier Digital Bank account in the UK. Their Business Banking offering is also competitive, but costs 5 pounds via monthly subscriptions.
Winner: Starling Bank offers a wider variety of completely free account options, compared to Monzo which charges fees for fewer account types.
Monzo vs Starling Business Account
Starling Bank is the UK's largest digital business bank with over 450,000 companies & businesses leveraging their platform. Starling Business Bank Accounts are completely free, regulated by FSCS, and offer multi-currency support for GBP, EUR, and USD. The Starling Bank customer service team for business banking was voted #1 in the UK for service quality on an independent survey.
Monzo Bank is the second-largest digital business bank account that offers a suite of regulated services for companies and small businesses. They charge a fee of £5 per month to give you access to business banks, free bank transfers, invoicing services, business debit cards, and much more.
Winner: Starling Bank is the superior Business Banking option on the basis that they offer lower fees, higher interest deposits and better customer service.
Digital Bank Regulation in the United Kingdom
Both Starling and Monzo offer fully regulated UK bank accounts. This is because both companies have acquired a UK banking license, which provides insurance to customers of up to £85,000 that is covered by the Financial Services Compensation Scheme (FSCS) in the United Kingdom.
Winner: Both platforms are covered by the same regulations and licensing in the UK. That said, both banks are equally safe and secure to deposit GBP and other fiat currencies.
Bank Features Compared
Starling Bank offers the widest variety of features compared to other Digital Banks in the United Kingdom and Europe. With their platform, you can earn interest on GBP deposits, transfer money overseas, automatically round up transactions and deposit into a savings account and so much more. Starling charges 0 fees for accounts.
Monzo Bank provides a similar suite of services, with a sleek and intuitive iOS/Android App that gives you visibility over your accounts, transaction and portfolio. The key difference is that Monzo offers 'Premium Services' that charge the customer monthly subscription fees - whereas Staling does not.
Winner: Starling Bank wins again because they offer the same services, but charge zero fees.
Does Starling or Monzo offer Crypto?
Both Starling Bank and Monzo Bank do not offer cryptocurrency services for their Personal or Business bank account holders. That said, you can safely deposit GBP into licensed cryptocurrency exchanges like eToro UK to buy cryptocurrencies and stocks.
We recommend that you stick to licensed platforms and avoid off-shore exchanges like Binance - because your bank may freeze your account.
Final Thoughts: Starling or Monzo?
Starling is better than Monzo bank because they offer more banking services for fewer fees in the United Kingdom. Their customer support was also voted #1 in an independent survey that asked business accounts and institutional clients about the service of 50 different banks in the UK.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.