Monzo vs. Wise: Comprehensive Comparison for Your Financial Needs

13 August 2025 at 07:26

Contents

Wise vs. Monzo Side-by-Side Comparison of Main Features
Wise vs. Monzo Fee and Cost Structure
Monzo vs. Wise: Advantages and Disadvantages
Conclusion

Wise vs. Monzo Side-by-Side Comparison of Main Features
Wise vs. Monzo Fee and Cost Structure
Monzo vs. Wise: Advantages and Disadvantages
Conclusion

Is the era of traditional banking over? It’s hard to say for sure, but fintech innovators like Monzo and Wise (formerly TransferWise) are quickly becoming a viable alternative to old-school banks. With a unique approach to modern money management, each platform offers a suite of compelling benefits tailored to frequent travelers, remote workers, business owners with international clients, or individuals seeking smarter banking solutions.

But should you choose Wise or Monzo, which is better for you? In this guide, we’ll compare Monzo vs. Wise to help you understand the strengths, features, and limitations of each platform.

Wise vs. Monzo Side-by-Side Comparison of Main Features

At a glance, both Monzo and Wise are decent alternatives to traditional banking, boasting overwhelmingly positive customer reviews and a range of benefits in their offerings. However, these services are designed with different core purposes in mind. To see how they stack up in practice, let’s compare Monzo and Wise in terms of key functionalities.

Account types and accessibility

Both Wise and Monzo offer digital-first solutions, but they differ significantly in structure, availability, and the overall user experience.

Feature	Monzo	Wise
Accessibility	Monzo accounts are available to UK residents and regulated by the Financial Conduct Authority (FCA), with full FSCS protection up to £85,000	Wise is accessible in over 70 countries, and although it’s not a bank, it is regulated in each region where it operates, resulting in strong security and transparency
Account setup	UK residents only, with a quick in-app registration process	Available globally in supported countries; online signup
Types of accounts provided	Personal accounts (Free, Extra, Perks, or Max) Business accounts (Lite, Pro, or Team) that can be integrated with accounting software like Xero and QuickBooks	Personal accounts Business accounts smoothly integrate with tools like Xero, QuickBooks, and Stripe
Mobile app	Intuitive, feature-rich	Highly rated, global usability
Web platform	Basic functionality via web, with a focus on mobile banking	A fully functional web platform for account management

Money transfers

Wise specializes in low-cost international transfers, while Monzo offers basic domestic transfers and utilizes Wise for international ones.

Feature	Monzo	Wise
Domestic transfers	Instant Faster Payments within the UK	Supported in many regions. Speed depends on local regulations, but transactions rarely take more than a single business day
International transfers	Available via Wise integration (external link from the Monzo app)	Core feature – fast and cheap international transfers to 70+ countries
Transfer fees	Monzo itself doesn’t charge transfer fees, but Wise fees may apply via integration	Relatively small fees based on destination and transaction amount, typically ranging from 0.33% to 1.5%
Transfer speed	Usually 1–2 business days for international (via Wise)	Usually same-day or next-day, depending on the currency and destination

Currency exchange and multi-currency support

If we compare Monzo vs. Wise exchange rate and multi-currency support, the latter offers a more powerful and flexible exchange system with better rates and extended functionality.

Feature	Monzo	Wise
Hold multiple currencies	No, all account balances are held in GBP	Yes, over 40 currencies, including EUR, USD, AUD, GBP, etc.
Currency exchange rates	No direct exchange feature. Relies on Wise rates for international transfers	Real-time mid-market rates, no hidden markups
Receiving foreign currencies	No native support, international payments handled via Wise	Yes, with global account details in 23 currencies
Spending in foreign currencies	Yes, debit cards use the Mastercard rate, no markup	Yes, multi-currency Wise cards can automatically convert your funds at a mid-market rate
Converting between currencies	Only via Wise integration for transfers	Yes, with an upfront fee and at a mid-market rate
Currency management tools	No tools for managing foreign currency balances	Real-time conversion, alerts, and analytics

Additional features

In a Monzo vs TransferWise comparison for added extras, Monzo excels in bank-specific features and functionality that Wise lacks.

Feature	Monzo	Wise
Overdrafts	Available for eligible users. Interest rates range from 19% to 39% EAR (variable), depending on credit history	No overdrafts. Wise only allows you to spend what you have
Loans	Monzo offers personal loans up to £25,000 with clear repayment terms and in-app management	Not available. Wise is not a credit provider
Budgeting tools	Spending tracking, category budgets, and savings pots	Some analytics, but no real budgeting tools
Card options	Free Mastercard debit card delivered in the UK and multiple virtual cards for online shopping and payments	Visa debit card available in over 40 countries, virtual cards available instantly upon account setup
Savings	“Pots” and cash ISAs with interest (3.75%) allow users to save towards specific goals or bills	“Jars” let users set aside funds, though they are not as flexible as Monzo’s pots

Wise vs. Monzo Fee and Cost Structure

When choosing a financial service, the costs are just as important as the features. So, let’s compare Wise vs. Monzo cost structure and determine which provider offers a better value for your money.

Account maintenance fees

Wise keeps things simple with no monthly or setup fees unless you opt for a business account. Wise business users make a one-time £45 payment at account creation. Meanwhile, Monzo offers several tiered choices, with free Standard accounts and enhanced Extra (£3 monthly), Perks (£7), and Max (£17) plans. The same is true for business users, with a free Lite plan and more advanced Pro (£9) and Team (£25) plans.

When it comes to Wise card vs. Monzo, the former charges its users a one-time £7 fee to issue a card, while the latter issues debit cards for free.

Transaction fees

While both systems apply certain fees and charges to domestic and international transactions, each has its specific strengths and weaknesses in this realm.

Transaction type	Monzo	Wise
Sending money	Free within the UK. For foreign transactions, a fixed fee of £0.50–£2.68 is applied, along with a variable fee of up to 1.30% depending on the currency	The fee varies by currency and starts from 0.33%
Receiving money	Receiving GBP is free. If you receive Euros, a 1% (up to £1,000) conversion fee is implemented	Receiving non-SWIFT/non-wire domestic payments is free Receiving wire and SWIFT payments entails a fixed fee that depends on the currency
Currency exchange	Wise fees are applied to international transfers. There’s also a 3% fee for foreign currency spending after reaching monthly limits on a free plan	Varies from 0.33% to 1.5% depending on the currency
ATM withdrawals	Free cash withdrawals in pounds in the UK and in foreign currency inside the EEA area for users eligible for larger cash and card allowances. Non-eligible users are exposed to additional fees	2 free withdrawals per month up to £200, then £0.50 + 1.75% per withdrawal

Additional fees

Wise has a strong reputation as a provider with a transparent fee system. All costs are shown upfront before you confirm a transfer. Some less obvious fees you should be aware of include:

Physical card replacement payment of £7.
2% for funding e-wallets and some other accounts in certain currencies.
Interest-earning vehicles from Wise will entail an annual fee starting from 0.27%.

Monzo is also open about its fees, but some charges can sneak up on users who stay on the free plan without monitoring usage caps:

A 3% fee is applied to cash withdrawals exceeding £400 monthly in the UK and EEA and £200 outside the UK and EEA for users not matching specific Monzo criteria.
After replacing two Monzo cards for free, you’ll have to pay £5 for each subsequent replacement.
A replacement card outside the UK will cost you £30.
Each cash deposit entails a fixed £1 fee.

Monzo vs. Wise: Advantages and Disadvantages

The choice of a transaction provider largely depends on how you manage your money and what features you value most. Here is a quick summary of the pros and cons of each system.

System	Advantages	Disadvantages
Wise	Worldwide availability Free personal multi-currency account with decent functionality and no monthly maintenance fees Low-cost multi-currency transfers with real exchange rates Low-cost international shopping Intuitive app and strong web platform Strong data protection	Slightly slower transfer speeds than some instant providers offer Exchange fees vary by currency and payment method Low monthly limit for free ATM withdrawals Lacks comprehensive budgeting features Not ideal as a standalone everyday bank account
Monzo	Free standard account and premium options with extra features Free foreign card payments with competitive rates Excellent budgeting tools, savings pots, bill splitting, and salary advance options Fully licensed UK bank, strong security, and FSCS protection (up to £85,000)	Premium features are hidden behind a paywall Banking services are available only to UK residents Not a multi-currency account

Conclusion

So, by the end of the day, should you choose Monzo or Wise? There is no clear winner here, since these services cater to different financial needs. Wise is a great choice for those who deal with multiple currencies, travel often, or regularly send money internationally. Monzo, on the other hand, is designed as a full-service digital bank in the UK, offering comprehensive tools for budgeting, savings, and financial management.

August 13, 2025 07:26