A guide to Monzo: The smart way to manage (and save!) your money
I genuinely don’t know what I did before Monzo was in my life! It’s not just my bank, it helps me track our spending, save effortlessly (hurrah for automation!) and budget our money better.
Monzo makes it simple. In this guide, we'll explore Monzo's key features, including its unique "Pots" system, which helps you organise your savings.
Key features of Monzo
I have banked with Monzo for years and I love their intuitive budgeting tools, real-time spending notifications, and cool savings features. Read below to find out more about Monzo’s features and benefits.
The 'Pots' feature
Arguably the best and most popular feature is Pots. The Pots feature allows you to separate your money so you can save and/or budget better. Instead of keeping all your money in one account, you can create specific pots for different purposes, like a holiday fund, emergency savings, or a big purchase.
How to use Monzo Pots to save money
Create multiple Pots: You can up separate savings Pots for different goals (e.g. a holiday fund, emergency savings, a new phone, or for future big purchases). It’s a way to organise your money visually, ensuring you stay on track with your goals.
Set goals and track progress: Each Pot can have its own goal, and you can track how much you’ve saved toward that goal. For example, you can set a Pot for saving £500 for a new laptop, and Monzo will show you the progress and how far you are from reaching your target, making it easier to stay motivated.
Automate savings: You can schedule automatic transfers to your Pots which is a great way to ensure you’re consistently putting money aside for your goals.
Round ups: Monzo automatically rounds up your transactions to the nearest pound and saves the extra change in a Pot. (e.g., Spend £4.50, and 50p goes into savings.). This helps you save without even thinking about it.
Interest-earning Pots: With Monzo Plus and Premium, certain Pots can earn interest, helping your savings grow over time.
Shared Pots: You can create a joint Pot with friends or family to save together for a common goal (e.g., group holiday , gift or household bills).
Additional features and benefits
1. Mobile-first banking
Monzo operates primarily through its mobile app, giving you full control over your finances on-the-go. The app is user-friendly, making it easy to check balances, make payments, and track spending easily.
2. No hidden fees for UK transactions
Some traditional banks charge monthly fees for basic accounts - not Monzo! You can spend, transfer, and withdraw money within the UK without worrying about unexpected or hidden charges.
3. Real-time spending notifications
Every time you make a transaction, Monzo sends an instant notification. This makes it easier to track spending and stay on top of your budget.
4. Smart budgeting tools
Monzo offers intuitive budgeting tools that allows you to:
Categorize spending (e.g., groceries, bills, entertainment)
Set spending limits for different categories
Track monthly spending habits to improve financial health
5. Overdrafts and Loans
Monzo offers overdrafts and personal loans directly through the app which means greater flexibility for short-term financial needs, with clear terms and no hidden fees.
6. International transactions
Monzo makes international payments simple by offering no fees on card payments or cash machine withdrawals abroad up to a certain limit - great news for travellers!
7. Strong security features
Monzo takes security seriously, and offers things like fingerprint/face ID login for extra protection and you can freeze/unfreeze your card instantly through the app if needed.
8. Monzo Plus & Premium
If you want some extra benefits, Monzo offers paid plans:
Monzo Plus (£5/month): Custom categories, interest on savings, and advanced spending insights.
Monzo Premium (£15/month): Includes phone and travel insurance, higher interest rates, and exclusive perks.
Why Monzo is great for saving money
Monzo isn’t just a digital bank - it’s a money-saving tool that helps you to spend smarter and save more efficiently. By using their features like budgeting tools, Pots, and automated savings, you can stay on top of your finances without extra effort.
Whether you’re saving for a holiday, building an emergency fund, or just want better control over your spending, Monzo makes it easy.
You can download the Monzo app here.
Disclosure: Some of the links in this blog are affiliate links. This means we may earn a commission if you click through and make a purchase, at no additional cost to you.
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