In today’s digital era, the business banking landscape has been drastically transformed, presenting businesses with various banking options. In the UK, two significant players that have reshaped the way businesses operate are Monzo vs NatWest.
This article dives into a comparison of the two, considering features, pros and cons, fees, unique attributes, and answering some frequently asked questions. This will help you make an informed decision about which bank suits your business needs best.
Monzo vs NatWest
| Feature | Monzo | NatWest |
|---|---|---|
| Mobile Banking | Yes | Yes |
| Business Debit Card | Yes | Yes |
| Overdrafts | Yes | Yes |
| Loans | Yes | Yes |
| Customer Support | 24/7 chat | 24/7 phone |
| Cash Deposits | PayPoint locations | Branches |
| Cheque Deposits | Post | Post/branch |
| Instant Notifications | Yes | Yes |
| Accounting Software Integration | Yes | Yes |
| International Payments | Limited | Yes |
| Free Transactions | Limited | Limited |
| UK Payments | Yes | Yes |
| Credit Interest | No | Yes |
| Saving Pots | Yes | No |
| Personal Account Switching | Yes | Yes |
| Contactless Payments | Yes | Yes |
| Online Security | High | High |
| Cash Withdrawal | ATMs | ATMs |
| FSCS Protection | Yes | Yes |
| Business Size | Small-Medium | All Sizes |
 | Tide Business Bank Accounts ✓ Free, Plus, or Pro Account ✓ iOS & Android Mobile App ✓ Upload & Auto-Match Receipts Pricing Trial period Contact | |
 | Card One Money ✓ No Credit Checks ✓ Simple Fees ✓ Up To 3.5% Cashback Pricing Trial period Contact | |
 | ANNA Money ✓ Apply In 10 Minutes ✓ Bookkeeping & Payroll Tools ✓ User-Friendly Mobile App Pricing Trial period Contact | |
 | HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected Pricing Trial period Contact | |
 | Metro Business Banking ✓ Business Current Account ✓ High Street Presence ✓ FSCS Protected Pricing Trial period Contact | |
 | Mettle Business Banking ✓ Business Bank Account ✓ Online & App ✓ Quick & Easy Application Process Pricing Trial period Contact | |
 | Monzo Business Banking ✓ Business Current Account ✓ Dedicated mobile app experience ✓ FSCS Protected Pricing Trial period Contact | |
 | Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform Pricing Trial period Contact |
Monzo
Monzo, the digital-only challenger bank, launched its business bank account in 2019, catering specifically to small and medium-sized enterprises.
Cutting edge payroll software
- Powerful and easy to use
- HMRC & RTI compliant
- Used by payroll pros
The CRM platform to grow your business
- Great for entrepreneurs
- Powerful data analytics
- Manage sales and data
Powerful web builder and advanced business tools
- Great for startups
- Powerful web page builder
- E-commerce available
Supercharged content planning
- Great for marketing
- Better than lists or sheets
- Manage social media
Create a new website in 10 minutes. Easy.
- Launch your website fast
- Powerful data intuitive
- No coding skills needed
Pros and cons
Pros
- User-friendly Interface: Monzo’s app is lauded for its intuitive design, making banking easy for those not comfortable with traditional banking.
- Instant Notifications: Receive real-time alerts on all transactions.
- Saving Pots: You can organise your money with dedicated pots for tax, bills, and other needs.
- Accounting Software Integration: Monzo syncs with popular accounting software like QuickBooks and Xero, simplifying your bookkeeping process.
Cons
- Limited International Services: Monzo’s capabilities for international transactions and overseas services are limited.
- No Physical Branches: As a digital bank, lack of physical branches may deter those who prefer face-to-face banking.
- No Credit Interest: Monzo does not offer interest on credit balances.
- Limited Free Transactions: Depending on the plan you opt for, your free transactions may be limited.
Table of fees and charges
| Type of transaction | Fee |
|---|---|
| Monthly account fees | £0 – £5 |
| UK bank transfers | Free – £0.20 |
| Cash deposits | £1 per deposit |
| Foreign currency transfers | 0.35% – 1% fee |
Unique and standout features
Monzo’s standout features are largely driven by its cutting-edge technology.
Its instant notifications keep you updated with real-time information about your account activity.
Furthermore, their ‘Pots’ feature helps businesses organise finances efficiently.
They also offer a “Tax Pot” feature that sets aside a percentage of every payment received, simplifying tax management.
Lastly, the integration with accounting software helps streamline the accounting process for small businesses.
NatWest
NatWest, as part of the Royal Bank of Scotland group, has been a stalwart in the UK banking industry, offering a wide range of financial services to businesses of all sizes.
Pros and cons
Pros
- Wide Range of Services: NatWest offers an extensive array of banking services, from loans to overdrafts, and more.
- International Transactions: You can make international payments easily.
- Physical Branches: The extensive network of branches provides the advantage of in-person services.
- Interest on Credit Balances: You can earn interest on your credit balances.
Cons
- No Savings Pots: Unlike Monzo, NatWest doesn’t offer ‘pots’ for organising finances.
- Complicated Interface: Some users find NatWest’s interface less intuitive compared to Monzo’s app.
- Delayed Notifications: Transaction alerts are not real-time.
Table of fees and charges
| Type of transaction | Fee |
|---|---|
| Monthly account fees | £5 |
| UK bank transfers | £0.35 |
| Cash deposits | £0.70 per £100 deposited |
| Foreign currency transfers | Variable |
Unique and standout features
NatWest’s main unique selling point lies in its long-standing history and reputation.
It offers comprehensive business banking services suitable for businesses of all sizes.
The bank provides a reliable international transaction service, making it a good option for businesses with overseas operations.
Additionally, the bank provides a ‘FreeAgent’ accounting software integration, which is free for NatWest business customers.
Conclusion – Monzo vs NatWest
Both Monzo and NatWest offer credible business banking options. The choice depends on your business needs.
If you’re a small to medium business that appreciates modern, tech-forward banking with unique budgeting tools, Monzo may be more suitable.
However, if your operations require extensive international transactions and you prefer the assurance of a traditional bank with physical branches, NatWest may be a better option.
FAQ
Yes, both Monzo and NatWest offer customer support. Monzo offers 24/7 chat support, while NatWest provides 24/7 phone support.
Yes, you can deposit cash at any PayPoint location, although there is a £1 fee per deposit.
Monzo offers limited international payment services. In contrast, NatWest provides more extensive international transaction capabilities.
Yes, NatWest offers comprehensive digital banking services, including a mobile app for managing your accounts on the go.
No, as of now, Monzo does not offer interest on credit balances.
Yes, NatWest integrates with ‘FreeAgent’ accounting software, which is free for its business customers.