If you’re looking for a slick, travel-friendly bank account, chances are you’ve come across both Monzo and Wise. Ditching traditional banking problems that always seem to be a problem, these platforms are great for new-age financial management, but they serve slightly different purposes.
Monzo is an app-based bank that makes everyday spending easy, while Wise (which used to be called TransferWise) is all about cheap international transfers and multi-currency accounts.
So, which one’s better for you? That depends on whether you’re after a full-on bank replacement or just a smart way to handle money abroad.
It comes down to how they compare in fees, features, travel perks, and overall usability. So, whether you’re a frequent traveller, digital nomad or just someone who wants to avoid sneaky foreign exchange fees, we’ll help you figure out which one suits your lifestyle best.
What Is Monzo?
Monzo is a UK-based digital bank that makes managing money effortless. Its standout features include instant spending notifications, budgeting tools and easy money transfers. You can set up direct debits, create savings pots and even get paid a day early if that’s helpful.
When travelling, Monzo lets you spend money abroad with no extra fees, and you get £200/month in free ATM withdrawals in the EEA.
But, beyond that, remember that withdrawal fees apply. While it’s great for everyday banking, it doesn’t offer the best exchange rates for international transfers. So, at the end of the dya, Monzo is ideal if you want a full-featured digital bank that’s simple to use.
What Is Wise?
Wise isn’t a bank- it’s a fantastic tool for international money management. It offers a multi-currency account, allowing you to hold, send and spend money in more than 40 different currencies at near mid-market exchange rates.
This makes it perfect for frequent travellers, expats and freelancers paid in multiple currencies. You also get a Wise debit card, which automatically converts currencies at the best possible rate when you spend.
However, Wise doesn’t offer overdrafts, direct debits or interest-earning savings – so it’s not a replacement for a traditional bank account. Instead, it’s designed to help you avoid expensive currency conversion fees.
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Monzo and Wise: How Do They Compare?
Monzo and Wise are both fantastic for managing money, but they do very different things. Monzo is a full-fledged UK digital bank, while Wise is a multi-currency account designed for international transfers and spending.
So which one is better? That depends on what you need.
Where Monzo Wins
- Best for everyday banking: Direct debits, savings pots, overdrafts – Monzo is a proper UK bank, so you can use it for all the services.
- Great for budgeting: Instant spending notifications, categorised transactions and savings goals make managing money easy.
- Affordable spending abroad: No extra fees when paying in foreign currencies, although ATM withdrawals abroad are limited (£200/month free in the EEA).
- Slick mobile app: Easy to use with lots of handy banking features.
So, if you’re looking for adigital banking solution that provides you with prety much all the same service as a normal bank but is usable virtually (and affordably), Monzo is robbly just the thing for you.
Where Wise Comes Out On Top
- Best for international spending: Get real exchange rates (without sneaky hidden markups) when converting money abroad.
- Perfect for multi-currency use: Hold, send and spend in more than 40 diffrent currencies without opening multiple bank accounts.
- Lower fees on international transfers: Cheaper than banks and even Monzo for sending money abroad.
- Handy for freelancers and expats: Get local bank details in different countries, making it easier to get paid in multiple currencies.
So, Monzo or Wise: Which One Should You Choose?
As we said, it really comes down to personal preference and your specific needs, but here are a few of the main things to consider if you really can’t decide between the two:
- Pick Monzo if you need a solid UK bank with great budgeting tools and a smooth mobile experience. It’s ideal for everyday banking with occasional travel.
- Pick Wise if you regularly spend, send or receive money in different currencies. It’s perfect for frequent travellers, expats and digital nomads.
Or, just use both! Plenty of people use Monzo for daily banking and Wise for international spending to get the best of both worlds.
