Monzo vs NatWest for business banking

Updated on 7 August 2023

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.

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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.

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Monzo vs NatWest

FeatureMonzoNatWest
Mobile BankingYesYes
Business Debit CardYesYes
OverdraftsYesYes
LoansYesYes
Customer Support24/7 chat24/7 phone
Cash DepositsPayPoint locationsBranches
Cheque DepositsPostPost/branch
Instant NotificationsYesYes
Accounting Software IntegrationYesYes
International PaymentsLimitedYes
Free TransactionsLimitedLimited
UK PaymentsYesYes
Credit InterestNoYes
Saving PotsYesNo
Personal Account SwitchingYesYes
Contactless PaymentsYesYes
Online SecurityHighHigh
Cash WithdrawalATMsATMs
FSCS ProtectionYesYes
Business SizeSmall-MediumAll Sizes
Monzo vs NatWest

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✓ Business Current Account
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Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts
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Card One Money
✓ No Credit Checks
✓ Simple Fees
✓ Up To 3.5% Cashback
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ANNA Money
✓ Apply In 10 Minutes
✓ Bookkeeping & Payroll Tools
✓ User-Friendly Mobile App
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HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected
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Metro Business Banking
✓ Business Current Account
✓ High Street Presence
✓ FSCS Protected
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Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process
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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
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Monzo

Monzo, the digital-only challenger bank, launched its business bank account in 2019, catering specifically to small and medium-sized enterprises.

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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 transactionFee
Monthly account fees£0 – £5
UK bank transfersFree – £0.20
Cash deposits£1 per deposit
Foreign currency transfers0.35% – 1% fee
Monzo fees and charges

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 transactionFee
Monthly account fees£5
UK bank transfers£0.35
Cash deposits£0.70 per £100 deposited
Foreign currency transfersVariable
NatWest fees and charges

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

Do Monzo and NatWest offer customer support?

Yes, both Monzo and NatWest offer customer support. Monzo offers 24/7 chat support, while NatWest provides 24/7 phone support.

Can I deposit cash with Monzo?

Yes, you can deposit cash at any PayPoint location, although there is a £1 fee per deposit.

Can I make international payments with Monzo?

Monzo offers limited international payment services. In contrast, NatWest provides more extensive international transaction capabilities.

Does NatWest offer digital banking services?

Yes, NatWest offers comprehensive digital banking services, including a mobile app for managing your accounts on the go.

Can I earn interest on my credit balance with Monzo?

No, as of now, Monzo does not offer interest on credit balances.

Does NatWest provide accounting software integration?

Yes, NatWest integrates with ‘FreeAgent’ accounting software, which is free for its business customers.

Reviewed by , Managing Director

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