Last updated: 6 April 2026
The Monzo vs Starling debate is the one that never dies in UK personal finance. Both are app-first, both are FSCS-protected, and both let you spend abroad without sneaky fees. On paper, they look almost identical. But after using both across our team for years, the differences show up in the daily details. This is not a spec sheet comparison. It is what actually matters when you open both apps every day.
This article is for informational purposes only and does not constitute financial advice. CoolCuration is not authorised by the Financial Conduct Authority (FCA) and does not provide personalised financial guidance. This page contains a referral link for Monzo. If you sign up through it, CoolCuration may receive a small reward at no extra cost to you. We have no commercial relationship with Starling Bank.
What Monzo and Starling have in common
Before getting into differences, it is worth clearing the obvious similarities off the table. Both Monzo and Starling are fully licensed UK banks. Both are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per banking licence. Both send instant spending notifications the second you tap your card, and both offer free personal current accounts with no monthly fee.
In addition, both let you spend abroad at the Mastercard exchange rate with no FX markup on the basic account. Both have savings features (Pots for Monzo, Spaces for Starling), and both offer joint accounts. Both work with Apple Pay and Google Pay, and both let you freeze your card instantly in the app. So far, so identical. The interesting stuff is where they diverge.
Where Monzo wins
Monzo's Salary Sorter is the reason half our team will not leave. The second your pay lands, it splits into pots automatically. Rent, bills, savings, spending money: sorted before you have had your morning coffee. Starling has Spaces, which does roughly the same thing, but it took longer to feel intuitive for the person on our team who tried both.
Get Paid Early is another Monzo highlight. If your employer pays via BACS, Monzo releases your salary at 4pm the day before payday. It sounds small, but once you have it, going back feels like a downgrade.
Monzo Investments
Monzo also has investing built directly into the banking app through Monzo Investments. You can open a Stocks and Shares ISA or General Investment Account, pick from ready-made portfolios, and start with just £1. We have reviewed Monzo Investments in depth separately, so head there for the full breakdown.
Capital at risk: Investments can go down as well as up. You may get back less than you invest. Monzo Investments is not covered by the FSCS deposit protection scheme. Your investments are held by Seccl Custody Limited, which is separately FCA-authorised.
Referral bonus and paid tiers
Monzo is currently running a boosted referral promo where new customers can earn a mystery reward of £20, £50, or £100 when they sign up and make their first card payment. We have a full guide to the Monzo referral here. Starling, by contrast, does not currently offer a public referral programme.
Monzo's paid tiers (Extra at £3/month, Perks at £7/month, Max at £17/month) offer extras like cashback at selected retailers, travel insurance, phone insurance, higher savings rates, and the weekly Greggs treat that Perks and Max subscribers seem irrationally attached to. Monzo also has a larger user base (over 12 million customers versus Starling's 4 million), which consequently makes bill splitting with friends more practical since more people are already on it.
Where Starling wins
The Starling user on our team swears by two things: the marketplace integrations and the fact that setting up a joint account took about three minutes with no waiting list.
Starling's overdraft is noticeably cheaper. The starting rate is 15% EAR, compared to Monzo's 19% EAR. If you occasionally dip into your overdraft, that difference adds up over a year. Furthermore, Starling does not charge for unarranged overdrafts either.
Travel and everyday extras
For spending abroad, Starling is arguably the cleaner deal. There are no caps on fee-free ATM withdrawals overseas. Monzo's free tier limits you to £200 per month outside the EEA before a 3% fee kicks in. If you travel frequently and withdraw cash regularly, Starling removes that friction entirely.
Starling also offers features that Monzo still lacks on its free tier. Cheque imaging (deposit cheques by taking a photo in the app) and free cash deposits at any Post Office are both included as standard. Connected cards let you give a second card linked to a specific Space, so a partner or family member can spend from a ring-fenced budget without touching the main balance.
Current account interest change
One big change happened in February 2025: Starling removed interest on current account balances. The old 3.25% AER on balances up to £5,000 is gone. Starling now offers a separate Easy Saver account at around 4% AER, but you need to move money into it manually. This was previously one of Starling's strongest advantages, so it is worth noting if that was a deciding factor for you. For more on where to park savings, see our best savings account UK roundup.
Business banking
Business banking is where Starling pulls furthest ahead. Over 500,000 business accounts, free Sole Trader and Ltd company accounts, Xero/QuickBooks/FreeAgent integrations, invoicing tools, and 24/7 UK-based phone support at no monthly cost. Monzo's business offering has improved, but Starling's is more mature and more widely trusted by small businesses and freelancers.
Monzo vs Starling: the comparison table
| Feature | Monzo | Starling |
|---|---|---|
| Monthly fee | Free (paid tiers from £3/mo) | Free (no paid tiers) |
| Interest on balance | Savings pots only (3.00% AER) | 0% on current account; Easy Saver ~4% AER |
| Salary sorter | Yes (automatic) | Manual via Spaces |
| Get Paid Early | Yes (1 day early via BACS) | No |
| Free abroad spending | Yes (Mastercard rate) | Yes (Mastercard rate) |
| ATM abroad (free tier) | £200/month free, then 3% | Unlimited free |
| Overdraft rate | 19%, 29%, or 39% EAR | 15%, 25%, or 35% EAR |
| Investment feature | Yes (Monzo Investments) | Via Marketplace partners |
| Referral bonus | £20, £50, or £100 (boosted) | No public referral |
| Business accounts | Yes (Lite free, Pro £5/mo) | Yes (free, more mature) |
| Cheque deposits | No | Yes (via app) |
| FSCS protected | Yes (£120,000) | Yes (£120,000) |
| Trustpilot rating | 4.6/5 (66,000+ reviews) | 4.1/5 (45,000+ reviews) |
Which one is right for you
Neither bank is objectively better. It depends on what you actually use a bank for. Here is a quick guide based on common scenarios:
- If you want investing inside your banking app: Monzo. Its built-in Stocks and Shares ISA is genuinely convenient for beginners. Capital is at risk. See our Monzo Investments referral page for current bonus details.
- If you travel a lot and withdraw cash abroad: Starling. Unlimited free ATM withdrawals worldwide with no monthly cap is hard to beat.
- If you run a small business or freelance: Starling. Its business banking is more established, free, and integrates with accounting software out of the box.
- If your friends are all on Monzo and you split bills a lot: Monzo. Bill splitting works best when everyone is on the same platform.
- If you want the simplest setup with no upselling: Starling. No premium tiers, no prompts to upgrade, just a solid free account.
- If you want a sign-up bonus: Monzo. Starling does not currently offer a public referral programme.
We have also compared Monzo and Chase if that is the decision you are weighing up instead.
Can you use both
Yes, and plenty of people do. One common setup is Monzo for personal budgeting and daily spending, with Starling as the business account. Or Starling as the travel card and Monzo as the main salary account. There is no cost to having both.
Since each bank holds a separate FSCS banking licence, your combined deposit protection across both accounts is £240,000. However, it is worth noting that FSCS protection applies per banking licence, not per brand. If you also hold savings or investments with another provider that shares the same licence, your cover may overlap. Always check the FSCS register if you are unsure.
If you are considering other challenger bank options alongside these two, it is also worth looking at the Chase refer a friend code (currently £50) or the Zopa Biscuit referral for a cashback-focused alternative.
Try Monzo or Starling
If you fancy trying Monzo, new customers can currently get a mystery reward of £20, £50, or £100 when they sign up using our referral link and make a card payment within 30 days.
We do not currently have a Starling referral link. If you want to try Starling, head straight to starlingbank.com and open an account there.
Full transparency: CoolCuration earns a small reward when you sign up to Monzo via our referral link. We have no commercial relationship with Starling. Our opinions on both banks are editorially independent.
FAQs
Is Monzo or Starling better in the UK
Neither is universally better. Monzo edges ahead on budgeting tools, investing features, and referral bonuses. Starling wins on business banking, overseas ATM withdrawals, and overdraft rates. Both are excellent free accounts and both are FSCS-protected up to £120,000.
Does Starling pay interest on your balance
Not any more on the current account itself. Starling removed current account interest in February 2025. However, it now offers a separate Easy Saver account at around 4% AER. You need to move money into it manually, so it is no longer the automatic perk it once was.
Is Monzo safe and FSCS protected
Yes. Monzo Bank Ltd is fully authorised and regulated by the Financial Conduct Authority. Your eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person. Starling Bank is equally regulated and FSCS-protected to the same limit.
Can you have both Monzo and Starling
Absolutely. Many people use both for different purposes. There is no cost, and since each holds a separate FSCS banking licence, your combined deposit protection is £240,000 across both banks.
Does Monzo charge for spending abroad
No. Monzo passes the Mastercard exchange rate directly to you with no markup on card payments. ATM withdrawals abroad are free up to £200 per month on the free tier (£600 on premium plans), after which a 3% fee applies.
Is Starling good for a business account
Yes. Starling's free business account is widely considered one of the best in the UK for sole traders and small limited companies. It includes Xero, QuickBooks, and FreeAgent integrations, invoicing tools, and 24/7 UK-based support at no cost.
What is the Monzo referral bonus
Monzo is currently running a boosted referral promo. New customers who sign up through a referral link and make their first card payment within 30 days receive a random mystery reward of £20, £50, or £100. See our Monzo referral guide for the latest details and steps.
More useful reads on CoolCuration
- Best cashback apps UK – stack savings on top of whichever bank you pick with these tried-and-tested cashback tools.
- TopCashback referral code – one of the easiest ways to earn money back on everyday purchases.
- Gift guide for travel lovers – handy picks if you are kitting out for a trip where Starling's unlimited ATM withdrawals come in handy.
- Ocean Bottle – a genuinely useful reusable bottle that funds ocean plastic cleanup with every purchase.
- Emma budgeting app – connects to both Monzo and Starling for a combined view of all your accounts.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoolCuration is not authorised by the Financial Conduct Authority (FCA) and does not provide personalised financial guidance. Always do your own research or consult a qualified financial adviser before making financial decisions. Both Monzo and Starling are protected by the FSCS up to £120,000 per person, per banking licence. Interest rates, fees, and promotional offers mentioned in this article can change at any time. Where investments are mentioned, your capital is at risk and you may get back less than you invest. This page contains a referral link for Monzo. If you sign up through it, CoolCuration may receive a small reward at no extra cost to you. We have no commercial relationship with Starling Bank.
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