Updated September 29, 2026 · VaultCue Editorial Team
Monzo vs Varo Bank
Monzo
Higher score in this comparison
Varo Bank
Where Monzo and Varo Bank differ
| Compare | MonzoReviewVisitVisit | Varo BankReviewSee alternativesSee alternatives |
|---|---|---|
| Monthly fee | £0 | $0 |
| Deposit protection | FSCS up to GBP 85,000 | FDIC up to USD 250,000 |
| Free ATM withdrawals | £200 | $0 |
| Transfer fee | 0 for UK transfers and foreign-currency card spend; international transfer up to GBP 9 fixed plus 0-1.80% | Free |
| Licence type | Not confirmed | Bank |
| Currency conversion fee | Not confirmed | 0% |
| Currencies | 38 | Not confirmed |
| Local account details | Not confirmed | Us ACH |
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Key differences
- Support channels: only Varo Bank offers Email, Chat, Phone.
- Features: only Monzo offers Joint account.
- Features: only Varo Bank offers Free ATM, Digital only, No credit check.
Our verdict on each
Monzo
Monzo suits UK residents who want a fee-free current account, a linked instant-access savings pot and card spending abroad without a markup. The current account runs a monthly fee of £0, savings pay 2.75% to 3.5% variable, and deposits are covered by the FSCS: FSCS up to GBP 85,000.
Varo Bank
Varo Bank suits people who want a free digital bank account and an easy-access savings balance without a minimum deposit. It charges a monthly fee of $0, pays a variable rate of 1% to 3.75% and holds deposits under FDIC up to USD 250,000.
Score breakdown
| Area | Monzo | Varo Bank |
|---|---|---|
| Cost | 9.3Current account monthly fee of £0 and a 0% exchange rate markup on foreign-currency card spend. | 9.3 |
| Offer | 9.2HigherInstant-access savings paying 2.75% to 3.5% variable, instant withdrawals, a joint account, 38 currencies and a free cash machine allowance. | 9.0 |
| Trust | 8.4 | 8.5Higher |
Positions in our rankings
| Ranking | Monzo | Varo Bank |
|---|---|---|
| Savings accounts | 29 of 1420 | 440 of 1420 |
Licences and countries
| Country | Monzo | Varo Bank |
|---|---|---|
| United Kingdom | Financial Conduct Authority 730427 | Not confirmed |
| United States | Not confirmed | FDIC FDIC cert 59190 |
Additional countries for Monzo: 1. Additional countries for Varo Bank: 1.
Every fact side by side
| Fact | Monzo | Varo Bank |
|---|---|---|
| Audience | Business, Teen | Not confirmed |
| Pricing model | No monthly fee | No monthly fee |
| Features | Joint account | Free ATM, Digital only, No credit check |
| Legal entity | Monzo Bank Limited | Varo Bank, National Association |
| Headquarters | United Kingdom | United States |
| Founded | 2015 | 2015 |
| Support channels | Help centre | Email, Chat, Phone, Help centreCovers more |
Savings
| Fact | Monzo | Varo Bank |
|---|---|---|
| Headline rate | 2.75% to 3.5% | 1% to 3.75%Higher |
| Rate type | Variable | Variable |
| Minimum deposit | £0 | $0 |
| Access terms | Instant withdrawals any time, no limits, interest paid monthly, up to 20 Savings Pots, Monzo current account required, aged 16+ | No minimum balance or deposit, no savings cap, access in the Varo app with free instant transfers |
| Account kind | Easy access | Easy access |
Money transfer
| Fact | Monzo | Varo Bank |
|---|---|---|
| Exchange rate markup | 0% | Not confirmed |
| Delivery time | Same day for 95% of customers, average 1 day | Not confirmed |
| Payout methods | Bank, Card | Not confirmed |
| Fee to send 1,000 | £0 to £9 | Not confirmed |
Where each stands against the rest
| Fact | Monzo | Varo Bank | Median |
|---|---|---|---|
| Currency conversion fee | Not confirmed | 0%below the median | 0.5% |
| Currencies | 38highest quarter | Not confirmed | 5 |
Median across 536 listed accounts.
Pros and cons
Monzo
Pros
- No monthly fee on the current account: £0
- No exchange rate markup on foreign-currency card spend: 0%
- Savings pay a variable rate of 2.75% to 3.5% with instant withdrawals and interest paid monthly
Cons
- Support runs on help centre only
- Savings need a Monzo current account first, and the pot sits in an easy access product
- International transfers charge £0 to £9 plus a percentage, unlike UK transfers and foreign-currency card spend, which cost nothing
Varo Bank
Pros
- A monthly fee of $0 applies, matching the site median of €0
- The savings account takes a minimum deposit of $0 and pays a variable rate of 1% to 3.75%
- Transfers are free and the ATM allowance is $0
Cons
- The savings rate is variable, so the 1% to 3.75% range can move
- The service is digital-only, which needs a phone and app access for everyday banking
- It is a US bank licence, and the local payment detail is us ach
Who each suits
Monzo
Who it suits
- UK adults and teens who want everyday spending with no monthly cost
- Savers who want instant access to their money without a notice period
- Travellers who spend abroad often, given the 0% markup and 38 currencies
Who should look elsewhere
- Anyone chasing a fixed-term rate, since the savings rate is variable and money comes out instantly
- People who want phone or email help, because support runs on help centre only
- Shoppers who only need a wallet for online payments can look at PayPal Colombia instead, where the monthly fee is $0
Varo Bank
Who it suits
- You want a savings balance you can reach at any time from the app
- You want no monthly charge on the everyday account
- You want a bank rather than an e-money or payment institution
Who should look elsewhere
- You want a fixed-rate term deposit, since the rate here is variable
- You need branches or in-person service, as the service is digital-only
- You need euro or UK payment details, and the local detail is us ach
Current offers
Monzo
Current offer
Free trial
3 month free trial of YouTube Premium Lite included with the Max plan: 3 months free YouTube Premium Lite
Max plan subscribers, aged 18-69, 3 month minimum term, UK residents, Ts&Cs apply
Source, checked September 26, 2026
Country by country
| Country | Monzo | Varo Bank |
|---|---|---|
| United Kingdom | Yes | No |
| United States | No | Yes |
Questions about each
Monzo
What does Monzo charge each month?+
The current account has a monthly fee of £0, and the pricing model it runs on is no monthly fee. The savings side carries no monthly charge either, with a minimum deposit of £0. The legal entity behind both is Monzo Bank Limited.
Is my money protected?+
Deposits are covered by the FSCS: FSCS up to GBP 85,000. In the UK the account is regulated by the Financial Conduct Authority and the Prudential Regulation Authority, so it is a bank rather than an e-money wallet. The legal entity is Monzo Bank Limited, based in the United Kingdom.
Varo Bank
What does Varo Bank charge each month?+
Varo Bank charges a monthly fee of $0 on the everyday account, which matches the site median of €0. Transfers are free and the ATM allowance is $0, so day to day banking costs nothing extra.
How much interest does the Varo savings account pay?+
The savings account pays a variable rate of 1% to 3.75%. Because the rate is variable, the range can move over time. The site median headline rate is 3%, so this sits at the higher end of typical savings listings.
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Monzo
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