Monzo vs Cashplus Bank

Table of Contents

Cashplus Bank vs Monzo – At a Glance

About Cashplus Bank

About Monzo

Cashplus Bank vs Monzo – Plans, Costs & Fees

Cashplus Bank

Cashplus has 2 types of current account, each with a different fee structure:

Monzo

Monzo have 3 different plans:

• Monzo Free – Free
• Monzo Plus – £5 per month
• Monzo Premium –  £15 per month.

On the free tier, all basic banking functions are included. The paid plans have some attractive features that can be useful, but are not crucial for running your account.

Cash withdrawals at ATMs are free up to £250 per month, but above that, Monzo charge 3% of the amount taken out for customers not on the monthly paid plans.

As Monzo is an app based bank, they do not have branches, so cash has to be paid into your account via PayPoint. It costs £1 per transaction.

Cashplus Bank vs Monzo – Features

Cashplus Bank

• UK current account – fully featured account
• No credit checks with opening an account – great for those with poor credit
• Mastercard debit card – including contactless functionality
• Deposit cash into your account – via Post Office branches
• Simple to use smartphone app – so you can bank on the go
• UK based customer service team – resolve issues quickly
• Purchase Protection on debit card – purchase risk-free
• Overdraft – available to eligible customers
• Travel cards – Euro and USD debit cards to use whilst abroad available
• Loan – available to eligible customers

Cashplus offer their Creditbuilder service on their Activeplus plan. It is for customers with a bad credit rating. It works by Cashplus Bank ‘loaning’ the customer the total annual cost of the subscription – which is £5.95 per month, or £71.40 per year. They then take the £5.95 from the customer each month, which pays off the ‘loan’. This gives the customer a credit history, which can help with their credit rating.

Monzo

• Easy to use smartphone app – bank wherever you are, around the clock.
• Instant Notifications – get informed of any activity on your account immediately
• Left To Spend Notifications – let the app track your spending and display the amount of money you have before your next salary
• Spending Budgets – Easily set up budgets within your account for different areas i.e. groceries, entertainment or transport.
• Monzo Pots – areas within your Monzo account, that allow you to split your money into different areas, for example bills, saving etc
• Mastercard debit card – with full contactless functionality
• Metal debit card – Available on the Premium tier
• Apple Pay/Google Pay – set up your Monzo card to pay with your phone
• Interest on your current account balance – 1% on Monzo Plus, 1.5% on Monzo Premium, up to a balance of £2000.
• Salary Sorter – set your account to distribute your salary amongst your pots once it hits your account
• Free UK ATM Withdrawals – on all paid Monzo tiers
• Pay in cash via PayPoint locations – up to £1000 every 180 days for £1 per deposit
• Insurances – available on the paid tiers
• Overdrafts – available for qualifying customers
• Loans – available for qualifying customers
• International currency transfers – Monzo have partnered with Wise to provide
• Monzo Flex – spread payments with Monzo’s own Buy Now Pay Later product

Cashplus Bank vs Monzo – Debit Cards

Cashplus Bank

The Cashplus Bank Mastercard debit card is blue or green on the personal account and black on the business account, and all cards have contactless and Apple Pay/Google Pay functionality.

Monzo

Monzo offer a Mastercard debit card, with contactless and Apple Pay/Google Pay enabled, for all customers. They offer 7 different colours, including their neon editions in Hot Coral, Disco Pink, Juicy Green and Sunshine Yellow. Subscribers to their £15 per month Premium tier get a metal debit card.

Cashplus Bank vs Monzo – Safety

Are digital challenger banks safe?

Traditional high street banks are generally seen as safe as they are large organizations that have been around for many decades. New digital banks are generally recent companies, and some are start-ups that may not yet be profitable. However, this does not necessarily mean that the older banks are safer. Many new digital banks, such as Cashplus Bank, Starling Bank and Monzo, are licensed UK banks, which means they have the same level of protection for consumers as the older banks.

Cashplus Bank

Cashplus Bank received their UK banking license in 2021, and are now regulated by the Financial Conduct Authority (FCA), and regulated and authorised by the Prudential Regulation Authority. Customer deposits are therefore covered under the Financial Services Compensation Scheme (FSCS) up to £85,000 per customer.

Monzo

• As they are a fully licensed UK bank, all Monzo customer deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per customer.

• Customers can freeze or unfreeze their Monzo card easily and instantly via the app.

Cashplus Bank vs Monzo – Business Banking

Cashplus bank

The Cashplus Bank business account has 2 tiers – Business Go, which is free, and Business Extra, with costs £9.00 per month. Features include:

• Accounting software – integrate with Xero, Quickbooks and Sage
• Business Creditbuilder – improve your credit score
• Account balance limits – £50,000 on Go, £250,000 on Extra
• Cash deposits – via the Post Office
• Spending reports – to help manage your money
• Additional debit cards – for your team

Monzo

The Monzo business account is available in 2 tiers – Lite, which is free, and Pro, which is £5 per month. Notable Monzo features:

• Tax Pots – separate funds for tax
• Integrate your accounting software
• Multi-User Access – give employees account access
• Invoicing – generate invoices directly from your Monzo account.
• Mobile & Web Access – smartphone or computer
• Currency Transfers via Wise – take advantage of the better rates

Read our full Monzo Business Review.

Cashplus Bank vs Monzo – Travelling

Cashplus Bank

• When spending with the card abroad, there is a fee of 2.99%

• ATM withdrawals abroad cost £3 per withdrawal

• Cashplus Bank offer Euro & USD travel debit cards that you can use when abroad. They are free to add on your account and with them you can avoid the fees.

Monzo

• Paying with your debit card whilst outside the UK is always free.

• Withdraw up to £250 every 30 days within the European Economic Area (EEA), and up to £200 every 30 days in other countries fee-free. When you take cash out above these limits you will be charged a fee of 3%

• Monzo partner with Wise, a popular currency conversion provider, to make their currency transfers. The currency transfer is made at interbank rate, with a small fee added to each transfer (which depends on which currencies you are transferring between).

Cashplus Bank vs Monzo – Child accounts

To open a standard account with Monzo or Cashplus Bank, you need to be over 18. However, both banks offer options for the under 18s.

Cashplus Bank

Cashplus account holders can apply for an additional card for a dependent aged between 13 and 18, with the card controlled by the main account holder.

Monzo – 16/17 year old account

Rather than a dependent account, the Monzo 16-17 year old account is a full Monzo account, with certain functions blocked, such as spending on gambling. The 16-17 year old account is available on the free Monzo tier.

Cashplus Bank vs Monzo – Mobile App

The Cashplus Bank smartphone app is maybe a little more basic than some competitor apps. However, customer praise the ease of use and simplicity of the app.

Monzo customers seem to be very happy with the Monzo app, with many Trustpilot and Reddit users saying how intuitive the app is. In 2022, Monzo won Best Banking Apps at the British Bank Awards.

Cashplus Bank vs Monzo – Extras

Cashplus Bank

Cashplus Bank have various extras above the core banking services that are aimed at users who have had financial issues in the past. Creditbuilder is a way for users to build up a positive credit rating via Cashplus. They have also made it possible for users to sign up to Cashplus without a credit check.

Monzo

The monthly paid plans that Monzo offer are very important for their business, and as such they have packed in extra features for the users that are willing to pay for them. From metal debit cards, to insurances and airport lounge access, they have a variety of things that might tempt you into paying a monthly fee.

Monzo vs Cashplus Bank – FAQ

Cashplus Bank vs Monzo – Verdict

At the heart of the Monzo and Cashplus Bank products, they are actually very similar. A current account and debit card, controlled by an easy to use smartphone app. It is within the positioning and extras where they differ. Monzo aim to replace your current bank with their more technology focused option, and have added a variety of extras to draw in customers – and likely a younger audience. Cashplus Bank have focused their product towards people who have had financial issues in the past with extras that can assist them. Whilst either bank could suit anyone who just wants an efficient app focused bank, both can be a very good option if you fit into either of these groups.