Revolut vs Monzo: The Best Digital Bank?

Revolut vs Monzo: The Best Digital Bank?

The world of banking has undergone a dramatic change with the rise of digital banks. These new players in the financial market offer online and mobile services, making the traditional brick-and-mortar banks seem outdated. Among the top contenders in the digital banking space are Revolut and Monzo. Both are UK-based companies that have gained significant popularity in recent years. But which one is the best digital bank? Let’s find out.

Services and Features

Revolut and Monzo offer a wide range of services and features that make banking convenient and efficient for their customers. Both companies offer personal and business accounts, along with various budgeting and savings tools. However, Revolut stands out with its travel money services, allowing users to exchange money at the best possible rate and spend money abroad without any extra fees.

On the other hand, Monzo offers a unique feature called “Pots” that allows users to create separate savings accounts within their main account for different financial goals. This makes budgeting and saving money more streamlined and organized for Monzo users.

Fees and Charges

One of the primary reasons people are switching to digital banks is to avoid high fees and charges. Revolut and Monzo both offer no monthly maintenance fees for their personal accounts. However, when it comes to international transactions, Revolut has an edge over Monzo. Revolut does not charge any additional fees for international transactions and offers competitive currency exchange rates. Monzo, on the other hand, charges a fee for international transactions.

When it comes to ATM withdrawals, Monzo allows its customers to withdraw up to £200 per month for free. After that, a 3% fee is charged. Revolut, on the other hand, offers free ATM withdrawals up to £200 per month, and then a 2% fee is charged. Revolut also offers a premium account that offers no ATM withdrawal fees up to £600 per month.

Security and Safety

Neither Revolut nor Monzo is registered as a bank. However, both are authorized by the Financial Conduct Authority (FCA) and are required to keep their customers’ money in a separate account. This means that in case of bankruptcy, customers’ money is protected up to £85,000 under the FCA’s Financial Services Compensation Scheme.

Both Revolut and Monzo also offer security features such as biometric login, card freezing, and the ability to set spending limits, ensuring that their customers’ money is safe from any fraudulent activities.

Customer Support

Revolut and Monzo both offer customer support through their in-app chat feature. However, Monzo also provides phone support during weekdays and weekends. This makes Monzo stand out in terms of customer service.

Conclusion

After comparing the services, fees, security, and customer support of both Revolut and Monzo, it is difficult to declare one as the best digital bank. Both have their strengths and weaknesses and cater to different needs. Revolut is suitable for frequent travelers with its no-fee international transactions and competitive currency exchange rates. On the other hand, Monzo’s budgeting tools and customer service make it the preferred choice for users who prioritize organization and support. Ultimately, the best digital bank for an individual depends on their specific needs and preferences.