Monzo.com Review

Based on checking the website, Monzo.com appears to be a digital-first bank offering a range of financial services primarily to UK residents.

The site highlights features like early salary access, cashback offers, spending insights, budgeting tools, and fee-free international spending.

While the platform focuses on convenience and modern banking solutions, a critical review reveals several features that are not permissible under Islamic finance principles, notably the offering of interest-bearing accounts, loans, credit cards, and investment options that are not explicitly Sharia-compliant.

Therefore, from an Islamic ethical standpoint, Monzo.com is not recommended due to its reliance on interest riba and potentially non-halal investment avenues.

Here’s an overall review summary:

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• Service Type: Digital-first banking current accounts, savings, loans, investments.
• Target Audience: UK residents.
• Key Features Highlighted: Early salary, cashback, budgeting, fee-free international spending, in-app support, savings pots, investment options, loans, credit cards.
• Ethical Review Islamic Perspective: Not recommended.
• Reasons for Non-Recommendation: Explicit mention of earning interest on savings AER interest, offering interest-based loans, and credit cards Flex Credit Card, Overdrafts which are all forms of riba interest. Investment options are not specified as Sharia-compliant, leading to further concern.
• Security: Claims industry-first tech to protect against scams, fully licensed by UK authorities PRA, FCA, and FSCS protection up to £85,000.

Monzo.com positions itself as a modern solution to traditional banking, emphasizing ease of use and smart money management.

Features like instant notifications, spending breakdowns, and bill organization are designed to empower users with greater control over their finances.

However, the core of its business model, like many conventional banks, involves transactions that are fundamentally misaligned with Islamic finance principles.

The offering of interest on savings accounts, even if variable, and the provision of loans and credit facilities that inherently involve interest riba make it an impermissible choice for a Muslim seeking to adhere to Sharia-compliant financial dealings.

Islamic finance strictly prohibits interest, viewing it as an exploitative practice.

Furthermore, the investment options are not explicitly stated as Sharia-compliant, which is crucial for Muslims seeking ethical investment avenues that avoid forbidden industries like alcohol, gambling, conventional finance, etc.. While the app’s features for budgeting and spending control are useful, they do not outweigh the ethical concerns regarding interest-based transactions.

Here are some alternatives that align with ethical Islamic principles:

• Islamic Microfinance Institutions: These institutions provide small-scale financial services based on Islamic principles, often focusing on empowering individuals and small businesses through ethical means. They avoid interest and focus on profit-sharing or ethical trade. Key Features: Interest-free loans Qard Hasan, profit-sharing Mudarabah, Musharakah, Murabaha cost-plus financing. Average Price: Service fees or profit-sharing arrangements, not interest. Pros: Ethically compliant, supports community development, often provides financial literacy. Cons: Limited availability in some regions, may have higher administrative costs for some services.

  

• Halal Investment Platforms: Platforms that specialize in Sharia-compliant investments, ensuring that investments are made in ethical industries and avoid interest, gambling, and other forbidden activities. Key Features: Screening for Sharia compliance, diversified portfolios, ethical investment focus. Average Price: Management fees usually a percentage of assets under management. Pros: Allows for ethical wealth growth, avoids haram industries, often transparent. Cons: May have fewer investment options than conventional platforms, returns can fluctuate.

• Takaful Islamic Insurance: An Islamic alternative to conventional insurance, based on mutual cooperation and solidarity. Participants contribute to a fund, and claims are paid from this fund. Key Features: Mutual cooperation, risk-sharing, no interest, ethical investment of funds. Average Price: Contributions premiums vary based on coverage. Pros: Sharia-compliant, promotes community solidarity, often more transparent. Cons: Less widespread than conventional insurance, coverage options may be more limited in some areas.

• Ethical Savings Accounts Non-Interest: While direct alternatives to interest-bearing savings accounts are challenging within conventional banking, some financial institutions offer non-interest-bearing current accounts or specialized “Qard Hasan” good loan accounts where deposits are held as trust with no expectation of return, or they invest funds based on ethical principles. Key Features: No interest earned or charged, focus on ethical transactions. Average Price: Often part of a standard bank account with no additional fees for the non-interest feature. Pros: Avoids riba, promotes ethical financial practices. Cons: No financial return on savings, limited options in many regions.

• Zakat-Eligible Charity Platforms: While not a direct financial product, these platforms facilitate the payment and distribution of Zakat, a mandatory charitable contribution in Islam. Engaging with such platforms supports ethical wealth distribution and community welfare. Key Features: Transparent Zakat calculation, distribution to eligible recipients, focus on poverty alleviation. Average Price: No cost, as it’s a religious obligation. Pros: Fulfills religious duty, supports humanitarian causes, promotes economic justice. Cons: Not a personal financial growth tool, but a wealth purification one.

• Digital Wallets for Ethical Spending: Apps that facilitate spending and budgeting without direct links to interest-bearing products. They can help manage daily expenses and track spending. Key Features: Expense tracking, budgeting tools, peer-to-peer payments, no interest. Average Price: Free or low transaction fees. Pros: Convenient, helps manage spending, avoids debt. Cons: Does not offer wealth accumulation or interest.

• Financial Literacy Resources for Islamic Finance: Instead of a product, investing in knowledge about Islamic finance can empower individuals to make Sharia-compliant decisions. This includes books, courses, and workshops on ethical wealth management. Key Features: Comprehensive understanding of Islamic financial principles, guidance on halal investments and transactions. Average Price: Varies from free online resources to paid courses/books. Pros: Long-term benefit of informed decision-making, promotes financial independence within ethical boundaries. Cons: Requires active learning and application.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Monzo.com Review & First Look

Based on looking at the website, Monzo.com presents itself as a sleek, modern digital bank aiming to simplify personal finance.

The vibrant “hot coral” branding is immediately noticeable, conveying an image of innovation and approachability.

The homepage emphasizes speed, convenience, and control, promising users a better way to manage their money.

It boasts features like “Get paid one business day early,” “Cashback offers on top brands,” and the ability to “Automate bills. Organise how you spend.

Save in clever new ways.” This initial impression aligns with a trend towards mobile-first banking experiences that prioritize user interface and accessibility. Mobilesms.io Review

User Interface and Accessibility

The website’s design is clean, intuitive, and easy to navigate.

Key information is presented clearly, with prominent calls to action for opening an account.

The mobile-first design philosophy is evident, suggesting a seamless experience for smartphone users, which is Monzo’s primary platform.

The use of clear, concise language avoids banking jargon, making it accessible to a broad audience, including those less familiar with complex financial terms.

Initial Trust Signals

Monzo prominently displays trust signals such as “12 million personal and business customers bank with Monzo” and a Trustpilot rating. Total Blackout Protocol Customer Complaints

Crucially, it highlights its regulatory status: “Monzo Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.” It also mentions the Financial Services Compensation Scheme FSCS protection up to £85,000, which is a standard safeguard for UK bank deposits.

These elements are vital for establishing credibility in the financial sector.

Core Value Proposition

Monzo’s value proposition revolves around empowering users with granular control and insights into their spending.

The promise of instant notifications, budgeting tools, and spending categories directly addresses common pain points in traditional banking.

The convenience of managing everything through an app, coupled with features like fee-free international spending and easy bill splitting, positions Monzo as a comprehensive solution for everyday financial needs, especially for a digitally native demographic. Is ProstaPeak Legit

Monzo.com Features

Monzo’s feature set is designed to offer a comprehensive, app-driven banking experience, distinguishing it from traditional high-street banks.

The website details several functionalities aimed at making money management more intuitive and less cumbersome.

Smart Spending & Budgeting Tools

Monzo emphasizes tools that give users a clear picture of their financial habits.

• Instant Notifications: Users receive immediate alerts for every transaction, offering real-time oversight of their spending.
• Budgeting: The app allows users to set budgets for various categories like groceries, going out, and transport. It can also send alerts if spending in a category is too fast. This feature is particularly useful for tracking expenses and staying within financial limits.
• Spending Insights: Weekly and monthly summaries provide a breakdown of where money goes, helping users understand their habits and identify areas for adjustment.
• Categorization: Transactions are automatically categorized, or users can manually adjust them, providing a detailed ledger of their expenditures.

Saving & Investment Options

Monzo offers several ways to save and even explore investments, though the nature of these offerings raises ethical considerations from an Islamic perspective.

• Savings Pots: Users can create separate “Pots” to segregate money for specific goals e.g., bills, holidays, savings. This visual separation can aid in financial organization.
• Roundups: A popular feature where every card payment is rounded up to the nearest pound, and the spare change is automatically transferred to a savings pot. Monzo claims users save an average of £100 extra each year this way.
• Interest on Savings Pots: Monzo explicitly states “Earn 3.25% AER interest variable Paid monthly with an Instant Access Savings Pot or Instant Access Cash ISA.” This directly conflicts with Islamic finance principles, which forbid earning or paying interest riba. The existence of interest-bearing accounts is a significant ethical red flag for Muslim users.
• Investment Options: Monzo offers options to “Invest as little as £1 in a choice of 3 investment options.” It notes that “the experts will take care of everything for you.” However, there is no mention of Sharia compliance for these investments. For a Muslim, investing without Sharia screening could mean unknowingly investing in industries forbidden in Islam e.g., alcohol, gambling, conventional finance, adult entertainment.

Bill Management & Payments

Monzo aims to simplify the complexities of managing recurring payments and splitting costs with others. Arthronol Consumer Reports

• Bills Pots: Users can set up Direct Debits and standing orders to come directly from a dedicated “Bills Pot,” preventing essential expenses from mixing with daily spending.
• Bill Alerts: The app can notify users if a bill is more expensive than the previous month, helping avoid unexpected charges.
• Split Bills: A highly touted feature, allowing users to easily split costs with friends, even if they aren’t Monzo customers. This streamlines the process of settling shared expenses and sending payment reminders.

International Travel & Spending

For users who travel frequently, Monzo highlights several benefits.

• Fee-Free Spending Abroad: Monzo states “We don’t charge fees for spending on your card abroad, and we pass Mastercard’s exchange rate directly onto you, without extra charges.”
• Free Cash Withdrawals Abroad: It offers unlimited fee-free cash withdrawals in the European Economic Area EEA if Monzo is the main bank account, and up to £200 every 30 days for free outside the EEA, with a 3% charge thereafter.
• Real Exchange Rate: Users see the real exchange rate in the app and receive a spending report for their trip.

Borrowing Options

Monzo offers various borrowing options, which, like savings interest, are problematic from an Islamic finance perspective due to their interest-based nature.

• Overdrafts: Available to cushion current accounts.
• Flex Credit Card: A credit card option.
• Loans: Loans up to £25,000 are offered, with the ability to check eligibility without affecting credit score. All these borrowing mechanisms inherently involve interest riba, making them impermissible in Islamic finance.

Monzo.com Cons from an Ethical Perspective

While Monzo.com boasts many convenient features from a conventional banking standpoint, a critical review from an ethical specifically Islamic perspective reveals significant drawbacks due to its fundamental operational model.

These cons primarily revolve around the concept of Riba interest and the lack of Sharia-compliant financial instruments.

Riba Interest Based Operations

The most significant concern for a Muslim user is Monzo’s direct involvement with Riba, which is strictly prohibited in Islam. Is Sumatratonic Safe

• Interest on Savings: Monzo explicitly advertises “Earn 3.25% AER interest variable Paid monthly with an Instant Access Savings Pot or Instant Access Cash ISA.” Any form of earned interest is considered Riba, making these savings options impermissible. Even if the rate is low, the principle of earning interest on deposits is contrary to Islamic teachings.
• Interest-Bearing Loans and Overdrafts: The website clearly offers “Overdrafts,” “Flex Credit Card,” and “Loans up to £25,000.” All conventional loans and credit cards involve the charging of interest on borrowed amounts. This direct engagement with Riba on the borrowing side is also forbidden. For a Muslim, participating in such transactions, whether as a borrower or lender, is to be avoided.
• Conventional Investment Options: While Monzo offers investment choices, there is no clear indication that these investments are Sharia-compliant. This means funds could be invested in industries like alcohol, gambling, conventional banking, or other sectors deemed unethical or forbidden in Islam. Without rigorous Sharia screening, these investment avenues carry a high risk of being non-halal.

Lack of Sharia Compliance

Monzo is a mainstream, conventional digital bank.

As such, its products and services are not designed with Islamic ethical principles in mind.

• Absence of Halal Alternatives: There are no dedicated Sharia-compliant accounts, investment funds, or financing options. For instance, there’s no mention of Murabaha, Mudarabah, Musharakah, or Ijarah contracts which are standard in Islamic finance for ethical transactions.
• Commingling of Funds: As a conventional bank, it’s highly likely that customer funds are commingled and used in interest-based lending or other non-Sharia-compliant activities, even if a user attempts to avoid interest personally. This can be problematic for a Muslim who seeks to ensure their money is handled in an ethically pure manner.

Ethical Implications of a Conventional Banking Model

Beyond the direct issues of Riba, the overall conventional banking model can present broader ethical concerns for those adhering to Islamic principles.

• Support for the Interest-Based System: By using a conventional bank, even if one tries to avoid interest-earning products, one is still contributing to and supporting an economic system built on Riba, which is seen as fundamentally unjust and exploitative in Islam.
• Potential for Indirect Involvement in Non-Halal Activities: Without transparent Sharia-compliant practices, there’s always a risk that the bank’s broader operations, including where it invests its own capital or funds, may indirectly involve activities or industries that are not permissible.

In summary, for someone committed to Islamic financial principles, Monzo.com’s fundamental reliance on interest for both savings and borrowing, coupled with the lack of explicit Sharia-compliant investment options, makes it an unsuitable choice.

While its technological advancements and user-friendly interface are appealing, they do not mitigate these core ethical conflicts. Is Keto In One a Scam

How to Cancel Monzo.com Account

Cancelling an account with a digital bank like Monzo is typically designed to be straightforward, usually managed directly through the app.

However, before proceeding, it’s crucial to understand the implications, especially regarding any outstanding balances, direct debits, or active services.

For those seeking to align their finances with Islamic principles, closing accounts with conventional banks like Monzo that engage in interest-based transactions is a necessary step.

Steps to Close Your Monzo Account

Monzo provides an in-app process for account closure. Here’s a general guide:

1. Empty Your Account: Ensure your account balance is £0. Transfer any remaining funds to an alternative, ethically compliant bank account or withdraw them. Do not leave any pending transactions.
2. Cancel Direct Debits and Standing Orders: Before closing, move all your Direct Debits and standing orders to your new bank account. This prevents disruption to your bill payments.
3. Download Statements: Access and download all necessary bank statements for your records. This is crucial for tax purposes or any future financial inquiries.
4. In-App Request: Navigate to the “Help” or “Support” section within the Monzo app. Search for “close account” or “cancel account.”
5. Follow Prompts: The app will guide you through the process, which usually involves confirming your decision and providing a reason for closure.
6. Confirmation: Monzo will confirm the account closure, often through an in-app message or email.

Considerations Before Closure

• Outstanding Debts: If you have an active loan, overdraft, or Flex Credit Card with Monzo, you must clear these balances before the account can be closed. This is a critical step, as outstanding debts will prevent closure.
• Active Subscriptions: Ensure any subscriptions or services linked to your Monzo card are updated with a new payment method to avoid service interruption.
• Regulatory Holds: In some rare cases, regulatory requirements or ongoing investigations might temporarily prevent immediate account closure.
• Data Retention: Be aware that financial institutions are legally required to retain customer data for a certain period even after an account is closed, for compliance and regulatory purposes.

For a Muslim, closing an account with Monzo is an important step towards purifying one’s financial dealings from Riba. Is Casino Destroyer Safe

Once the account is closed, it’s advised to ensure all future financial activities are routed through truly Sharia-compliant alternatives.

Monzo.com Pricing & Plans

Monzo offers various account tiers, ranging from free basic accounts to premium plans with additional features, each with its own pricing structure.

While the core “Current Account” is free, the premium tiers introduce monthly fees for enhanced benefits.

It’s important to evaluate these plans not just on cost but also on the ethical implications of their features, especially concerning interest and borrowing.

Basic “Current Account” Free

• Monthly Fee: £0
• Core Features: Free current account, instant notifications, budgeting tools, spending insights, savings pots with interest, fee-free spending abroad, limited fee-free ATM withdrawals abroad £200 every 30 days outside EEA.
• Ethical Note: While the account itself is free, the ability to earn interest on savings pots and access to interest-bearing borrowing products like overdrafts and loans remain problematic from an Islamic perspective.

Premium Plans Paid Subscriptions

Monzo offers upgraded personal current accounts, such as “Monzo Max,” which come with a monthly fee for more advanced features. Energeia Customer Complaints

• Monzo Max Example:
  • Monthly Fee: Varies e.g., £17 per month as indicated on the website for some plans.
  • Enhanced Features: Higher interest rates on Instant Access Savings Pots and Cash ISAs e.g., 3.75% AER variable, travel insurance, phone insurance, breakdown cover, and potentially higher fee-free ATM withdrawal limits abroad.
  • Ethical Note: The higher interest rates on savings further exacerbate the Riba issue. The inclusion of conventional insurance products also needs careful consideration, as traditional insurance models often involve elements of uncertainty gharar and interest riba that conflict with Islamic principles. Islamic finance offers Takaful as a Sharia-compliant alternative for insurance needs.

Borrowing Product Pricing

Monzo’s borrowing options, including overdrafts, Flex Credit Card, and personal loans, all come with associated interest rates.

• Interest Rates: These rates are variable and depend on individual creditworthiness and the specific product. The website states, “You can check if you’re eligible without affecting your credit score.”
• Fees: Beyond interest, there may be fees associated with certain borrowing products, such as late payment fees or arrangement fees, similar to conventional financial institutions.
• Ethical Note: As reiterated, all interest charged on borrowing is Riba, which is forbidden in Islam. Engaging with these products, regardless of the rate, is considered impermissible.

Data Snapshot:

• Interest Earned Example: “Interest for May so far £9.57” from homepage snippet. This directly demonstrates the interest-earning nature.
• Savings Interest Rate: “Earn 3.25% AER interest variable Paid monthly” for Instant Access Savings Pot.
• Premium Savings Interest Rate: “3.75% AER variable interest on Instant Access Savings Pots and Cash ISA” for premium plans.
• Loan Limits: Loans up to £25,000, Overdrafts up to £2,000.

In conclusion, while Monzo provides a free basic account, the core functionalities that generate revenue interest on savings and borrowing and the premium features higher interest, conventional insurance fundamentally clash with Islamic financial ethics.

For a Muslim, the pricing of Monzo’s services is secondary to the inherent ethical compromises embedded in its operational model.

Monzo.com vs. Halal Banking Alternatives

When comparing Monzo.com to halal banking alternatives, the divergence is clear: Monzo operates within the conventional interest-based financial system, while halal alternatives strictly adhere to Islamic ethical principles, particularly the prohibition of Riba interest and investments in forbidden industries. Is MetaMorphX Legit

Monzo.com Conventional Digital Bank

• Foundation: Built on a conventional banking model that leverages interest for both savings and lending.
• Savings: Offers interest-bearing savings accounts e.g., 3.25% AER variable and Cash ISAs, directly contravening the prohibition of Riba.
• Borrowing: Provides interest-based loans, overdrafts, and credit cards, which are also forbidden.
• Investments: Offers general investment options with no explicit Sharia screening, meaning funds could be placed in non-halal sectors.
• Insurance: Promotes conventional insurance products in its premium plans, which may contain elements of Riba and Gharar excessive uncertainty.
• Accessibility & Tech: Highly user-friendly app, instant notifications, budgeting tools, and convenient international spending features. These are strong points from a usability perspective.
• Regulatory Status: Fully regulated UK bank, covered by FSCS protection.

Halal Banking Alternatives Islamic Financial Institutions

• Foundation: Rooted in Islamic law Sharia, emphasizing ethical and social responsibility.
• Savings:
  • Non-Interest Bearing Accounts: Funds are held in trust Amanah with no interest paid or earned.
  • Profit-Sharing Investment Accounts Mudarabah/Musharakah: Funds are invested in Sharia-compliant ventures, and profits or losses are shared between the bank and the account holder, avoiding fixed interest.
• Borrowing:
  • Murabaha Cost-Plus Financing: The bank buys the asset and sells it to the customer at a marked-up price, paid in installments. No interest is charged.
  • Ijara Leasing: The bank leases an asset to the customer for a fixed rental, with the option to purchase at the end.
  • Qard Hasan Good Loan: Interest-free loans provided for welfare or small needs, often with a small administrative fee.
• Investments: Strict Sharia screening ensures investments are only in ethical and permissible sectors e.g., real estate, permissible trade, ethical companies and avoid haram industries.
• Insurance: Takaful Islamic Insurance: A cooperative system where participants contribute to a fund to cover each other against losses, based on mutual assistance rather than conventional risk transfer for profit. It avoids interest and excessive uncertainty.
• Accessibility & Tech: While historically slower, many Islamic banks and fintechs are now developing advanced digital platforms and mobile apps to compete with conventional banks in terms of user experience.
• Regulatory Status: Regulated by relevant financial authorities in their respective countries, often with additional Sharia supervisory boards.

Comparative Analysis:

Feature	Monzo.com Conventional	Halal Banking Alternatives Islamic
Core Principle	Interest-based banking Riba	Sharia-compliant, interest-free no Riba
Savings Returns	Fixed interest e.g., AER variable	Profit-sharing, non-interest accounts
Lending	Interest-bearing loans, overdrafts, credit cards	Murabaha, Ijara, Qard Hasan no interest
Investments	General market investments, no explicit Sharia screening	Sharia-compliant funds, ethical sector screening
Insurance	Conventional insurance e.g., travel, phone	Takaful mutual cooperation, no interest/gharar
Ease of Use	Excellent, intuitive app, modern UX	Improving, many modern digital platforms now available
Global Reach	Primarily UK-focused for full current accounts	Varies by institution, some have international presence
Ethical Stance	Profit-driven, conventional ethical framework	Values-driven, adherence to Islamic ethics and social justice

Data Point: According to the Islamic Finance Development Report 2022 by Refinitiv and ICDT, the Islamic finance industry reached an estimated US$4.5 trillion in 2022, demonstrating its significant and growing global presence as a viable ethical alternative.

For a Muslim seeking to maintain financial integrity according to their faith, halal banking alternatives are the unequivocally superior choice. They offer comprehensive financial solutions that align with ethical principles, even if they sometimes lag slightly in digital features compared to leading conventional fintechs like Monzo. The fundamental ethical conflict stemming from Riba makes Monzo unsuitable for those committed to Islamic finance.

Industry-First Tech Built to Protect & Authorised Push Payment APP Fraud Rankings

Monzo emphasizes its commitment to security, highlighting “Industry-first tech built to protect” against scams.

This is a critical aspect for any financial institution, especially given the rise in sophisticated financial fraud. Is Nutrivein Apple Cider Vinegar Effective

They mention “a trio of extra security controls” like known locations, a secret QR code, or trusted contacts for large payments.

Furthermore, Monzo actively participates in and publishes data regarding Authorised Push Payment APP fraud, offering transparency into how they manage and refund scam losses.

Monzo’s Security Measures

• Proprietary Technology: Monzo claims to use innovative technology specifically designed to detect and prevent fraudulent activities. This could include AI and machine learning algorithms that analyze transaction patterns to identify suspicious behavior in real-time.
• Enhanced Security Controls: The “trio of extra security controls” suggests multi-factor authentication or unique verification methods for high-value transactions.
  • Known Locations: Limiting large payments to pre-approved or frequently used locations adds a geographical security layer.
  • Secret QR Code: A unique, ephemeral QR code for transaction authentication could be a robust defense against remote attacks.
  • Trusted Contacts: Allowing users to designate trusted contacts for certain transactions or payment approvals adds a social layer of security.
• Instant Notifications: While not a “protection” in itself, instant notifications for every transaction allow users to quickly spot and report unauthorized activity.
• 24/7 Customer Support: Having real-life human support available around the clock through in-app chat is crucial for immediate reporting and resolution of security concerns.

Transparency on APP Fraud

Monzo’s decision to publish its performance in the Authorised Push Payment APP fraud rankings based on data from the Payment Systems Regulator in the UK demonstrates a commitment to transparency, which is commendable.

APP scams are particularly insidious as victims are tricked into sending money themselves.

Key Metrics Published by Monzo based on 2023 data: Is Keyslim Drops Effective

• Share of APP fraud refunded: This metric shows the proportion of total APP fraud losses that Monzo reimbursed to victims. Monzo ranks out of 14 firms in this category. A higher percentage here indicates better victim protection.
• APP fraud sent per £million transactions: This indicates the amount of money lost to APP scams for every £1 million of transactions sent from Monzo accounts. For example, the website states: “for every £1 million of Monzo’s transactions sent in 2023, £213 was lost to APP scams.” A lower figure is better, suggesting fewer funds are successfully sent to scammers from Monzo accounts.
• APP fraud received per £million transactions: This metric shows the amount of scam money received into accounts at Monzo, compared to other banks. This indicates how much Monzo accounts are used or not used as destinations for scam funds. For example, the website states: “for every £1 million received into consumer accounts at Monzo, £183 of it was APP scams.” A lower figure suggests Monzo’s accounts are less frequently used by fraudsters to receive illicit funds.

Data Interpretation:
These statistics are vital for consumer trust.

While the specific rankings are not provided in the snippet, Monzo’s willingness to publish these figures suggests confidence in its performance relative to peers.

A lower “APP fraud sent” figure implies effective preventative measures at the point of origin, and a lower “APP fraud received” figure suggests strong controls against accounts being used for money laundering by scammers.

Considerations for Muslim Users:

While Monzo’s security measures and transparency regarding fraud are positive from a general banking perspective, they do not address the fundamental ethical concerns related to Riba. Is Glucolean Effective

Even if a user’s funds are secure from fraud, if they are held in interest-bearing accounts or used in interest-based lending by the bank, the underlying financial transactions remain ethically problematic under Islamic law.

Therefore, while good security is a necessary component of any bank, it does not make a conventional interest-based bank permissible for a Muslim.

Data Source:

• Payment Systems Regulator PSR: The PSR is the economic regulator of payment systems in the UK. Their published APP fraud data provides an independent and authoritative source for these statistics. e.g., www.psr.org.uk/app-fraud-data

FAQ

What is Monzo.com?

Monzo.com is the official website for Monzo Bank Limited, a fully licensed digital-first bank operating in the UK.

It offers personal current accounts, savings, loans, and other financial services primarily managed through its mobile app.

Is Monzo.com a legitimate bank?

Yes, Monzo Bank Limited is a legitimate and fully regulated UK bank. Does Total Blackout Protocol Work

It is authorized by the Prudential Regulation Authority PRA and regulated by both the Financial Conduct Authority FCA and the PRA.

Deposits are protected by the Financial Services Compensation Scheme FSCS up to £85,000 per person.

Does Monzo.com offer interest on savings?

Yes, Monzo.com explicitly states that it offers interest on savings.

For example, it advertises “Earn 3.25% AER interest variable Paid monthly with an Instant Access Savings Pot.” Higher interest rates are offered on premium plans.

Are Monzo’s loans and credit cards interest-free?

No, Monzo’s loans, overdrafts, and Flex Credit Card are conventional borrowing products that involve the charging of interest, which is a form of Riba. RetiClear Review

Can I get paid early with Monzo.com?

Yes, Monzo.com highlights a feature that allows users to “Get paid one business day early” when their salary is paid by Bacs.

What are “Pots” in Monzo.com?

“Pots” are a feature within the Monzo app that allows users to separate their money into different categories for saving, organizing bills, or specific spending goals.

Does Monzo charge fees for spending abroad?

Monzo states that it does not charge fees for spending on its card abroad and passes on Mastercard’s exchange rate directly to the user without extra charges.

Is there a fee for ATM withdrawals abroad with Monzo?

Monzo offers unlimited fee-free cash withdrawals abroad in the European Economic Area EEA if it’s your main bank account, and up to £200 every 30 days for free outside the EEA. After that, a 3% charge applies.

How does Monzo help with budgeting?

Monzo provides instant notifications for every transaction, allows users to set budgets for different spending categories, and offers weekly and monthly insights into spending habits. Is AmericanDisabilityBenefits Legit

It can also alert users if they are spending too fast.

Can I split bills with friends using Monzo?

Yes, Monzo has a feature that allows users to easily split bills and send payment reminders to friends, even if they don’t have a Monzo account.

Is Monzo customer support available 24/7?

Yes, Monzo claims to offer 24/7 customer support through in-app chat, stating they “don’t have opening or closing hours.”

How do I close my Monzo.com account?

You can close your Monzo account through the in-app support section.

Before closing, you need to ensure your balance is £0, transfer any funds, and move any Direct Debits or standing orders to a new bank.

Does Monzo offer investment options?

Yes, Monzo offers investment options where users can invest as little as £1. However, there is no explicit mention on the website about these investments being Sharia-compliant.

What are the ethical concerns of Monzo.com from an Islamic perspective?

The main ethical concerns from an Islamic perspective are Monzo’s involvement in Riba interest, both on savings accounts and loans/credit cards, and the lack of explicit Sharia-compliant investment options.

What is FSCS protection?

FSCS protection, or Financial Services Compensation Scheme, protects eligible deposits in UK banks, including Monzo, up to a value of £85,000 per person, meaning your money is safeguarded up to this amount if the bank fails.

Does Monzo help protect against scams?

Yes, Monzo highlights “industry-first tech built to protect” against scammers, including extra security controls like known locations and QR codes for large payments.

They also publish data on Authorised Push Payment APP fraud.

Can I deposit cash and cheques with Monzo?

Yes, Monzo supports in-app cheque deposits and cash deposits across all UK Post Offices and PayPoints.

How many customers does Monzo have?

According to the website, Monzo banks with “12 million personal and business customers.”

Are there premium plans available with Monzo?

Yes, Monzo offers upgraded personal current accounts like “Monzo Max” which come with a monthly fee and additional features such as higher interest rates on savings, and various types of insurance.

Why is interest Riba forbidden in Islam?

Interest Riba is forbidden in Islam because it is viewed as an unjust and exploitative form of gain, where wealth is generated without real effort or shared risk in a productive enterprise.

Islamic finance promotes profit-sharing and ethical trade as alternatives.