Monzo, a UK-based “neobank,” and one of the first app-based challenger banks now offers free and premium business accounts.
Monzo wants to “make money work for everyone,” not just the traditional banks it’s challenging. Initially, just an app-based banking service, Monzo started offering personal current accounts back in 2017. This week, it announced the launch of its first-ever business banking services.
Monzo’s mantra is to simplify and make business banking effortless, to help you spend less time “on banking and admin,” and focus instead simply “running your business.”
The new business banking from Monzo includes two options: Monzo Business Pro, and Monzo Business Lite. The former costs £5 per month (UK) and the latter is free.
Both options are full UK current accounts, and are regulated in the same way as other banks. Eligible deposits are FSCS protected up to £85,000.
Pro features a very cool feature called “Tax Pots,” which allows you to choose a percentage of income to set aside for tax. Whenever your business is paid, that percentage will be put aside in your Tax Pot automatically. However, you can also access that money whenever you want.
Pro also lets you add up to 2 other people to access your business account, directly from the app. They are able to pay people, see incoming and outgoing payments, and even edit account information – ideal for you running a small business with multiple partners.
Apart from the above, Pro will allow you to integrate your accounting tools – Xero, FreeAgent, and QuickBooks – so you don’t have to switch between tools, or manually upload statements. They are sent automatically every day. For other accounting tools, you can simply export a file of your transactions (CSV, PDF, or QIF) whenever you need to.
Both Pro and Lite give you instant notifications, letting you know exactly when you were paid, and, of course, the ability to manage your money from anywhere – on mobile or from the web. Oh, and fee-free UK bank transfers. Awesome!
If you’re a sole trader or a UK LTD, based in the UK and only pay tax in the UK you should be eligible to apply.
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