Monzo vs ANNA: Business Bank Account Comparison

In our experience, Monzo suits a business that wants banking to be invisible until it's needed, rather than a business actively looking for built-in tax admin. If eligibility is a sticking point, our free business bank accounts guide rounds up other no-fee options worth comparing.

What ANNA Is Designed For

ANNA is built for sole traders, limited companies, LLPs and partnerships that want their tax admin done for them, not just a place to hold money.

Key Characteristics of ANNA

• A free Pay As You Go plan with no monthly fee, useful for testing the app before committing to a paid tier

• Invoicing included on every plan, with QuickPay functionality so clients can pay by card straight from the invoice

• AI-assisted receipt capture that auto-categorises expenses as you photograph them

• A live, running HMRC tax liability estimate that updates as you spend and get paid, rather than a figure calculated once a year

• Broader eligibility than Monzo. Sole traders, limited companies, LLPs and partnerships can all open an account

• An optional +Taxes add-on (£29 a month plus VAT, currently £3 a month for the first three months, LTD companies only) that handles VAT filing, Corporation Tax, payroll and bookkeeping in one place

• Up to 40% cashback on more than 150 partner products and services, alongside unlimited pots on the free and Big Business tiers

Trade-Offs to Consider

• ANNA isn't a bank. It's an e-money institution, so business deposits are safeguarded under the Electronic Money Regulations 2011 rather than FSCS-protected

• The free Pay As You Go plan charges 0.95% commission on every incoming payment, which adds up quickly for a business taking regular client payments

• No overdraft facility on any plan

• No Sage integration on any tier, only Xero

• Paid plans (£22.90 or £59.90 a month plus VAT) sit well above Monzo's equivalent tiers, and the +Taxes add-on is a further cost on top for limited companies wanting full filing

We looked into a common scenario to see how this plays out. A sole trader invoicing £4,000 a month through ANNA's free plan pays £38 in commission on incoming payments alone, more than double what Monzo's £9 Pro plan would cost for the same month, with invoicing and accounting integrations included. The maths shifts in ANNA's favour once you're on the Business tier making regular transfers, since the free transfer allowance kicks in and the tax tools start doing work a separate piece of software would otherwise cost you for.

For a broader look at how built-in admin tools compare across providers, see our guide to business bank accounts with accounting.

How They Charge

Monzo Pricing

Lite costs nothing and includes free UK transfers, a debit card, Savings Pots and MTD-ready tax filing for sole traders. Pro costs £9 a month, with the first month free, and adds invoicing, accounting integrations (Xero, QuickBooks, FreeAgent, Sage) and Tax Pots. Team starts from £25 a month and adds multi-user access for up to 15 people, employee expense cards, bulk payments and payment approval limits. Cash deposits at the Post Office or PayPoint cost £1 per deposit. An arranged overdraft carries an annual arrangement fee of £20 to £100 depending on the limit band, with representative rates of 19%, 29% or 39% EAR depending on risk assessment.

A business making frequent domestic transfers on any Monzo plan pays nothing extra for that activity. The main cost decision is whether Pro's invoicing and accounting tools are worth £9 a month over what Lite already covers for free.

ANNA Pricing

Pay As You Go has no monthly fee but charges 0.95% commission on all incoming payments, with unlimited free outgoing transfers and free ATM withdrawals. Business costs £22.90 a month plus VAT and includes 60 free local transfers, up to 5 free expense cards and reduced international payment fees. Big Business costs £59.90 a month plus VAT and includes unlimited free local transfers, unlimited expense cards and the lowest FX conversion fee of the three tiers, at 0.5%. The +Taxes add-on, available on any plan for limited companies, costs £29 a month plus VAT after an introductory £3-a-month period.

A business taking a high volume of client payments will find the 0.95% commission on PAYG adds up fast, which usually makes the £22.90 Business tier the more economical choice once monthly income moves past a few thousand pounds.

Monzo vs ANNA: Pros and Cons Compared

Feature Comparison: Monzo vs ANNA

Everyday Banking

Payments and transfers: Monzo's UK transfers are free at any volume on every plan. ANNA's free plan charges 0.95% on money coming in, while its paid plans include a free monthly transfer allowance before charges apply.

Account access: Both provide a UK sort code and account number through an app-first experience, with no branch network for either.

Business debit cards: Both include a Mastercard debit card as standard, with ANNA offering unlimited free expense cards on its free and top-tier plans, and Monzo reserving expense cards for the Team plan.

Invoicing and Admin

Monzo: Invoicing arrives with Pro at £9 a month, alongside Tax Pots for setting aside money for tax as it comes in.

ANNA: Invoicing with QuickPay functionality is included on every plan from the start, including the free tier, which gives it the edge for a business that needs to bill clients before it's ready to commit to a paid plan.

Accounting Support

Monzo: Direct integrations with Xero, QuickBooks, FreeAgent and Sage, but only on Pro and Team, not on the free Lite plan.

ANNA: Xero integration on every plan, with the +Taxes add-on going further by calculating and filing VAT, Corporation Tax and payroll directly, something Monzo doesn't offer on any tier.

International Payments

Monzo: No dedicated multi-currency account. Card spending in a foreign currency attracts a fee of around 1%, and international transfers outside Monzo's supported currencies route through Wise.

ANNA: Supports SWIFT and CHAPS payments with a currency conversion fee that falls from 1% on the free plan to 0.5% on Big Business, though like Monzo it doesn't hold foreign currency balances.

Neither account is built primarily for international trading. A business that regularly holds or exchanges multiple currencies would likely be better served elsewhere, something worth checking against our wider guide to comparing business bank accounts.

Savings

Monzo: A Business Saver account is available, with rates confirmed directly at monzo.com before relying on them.

ANNA: An Easy Access Savings account, provided by Griffin Bank, currently pays an introductory 3.66% AER (variable) for the first three months. Unlike ANNA's main account, savings balances here are FSCS-protected up to £120,000, since Griffin holds a full banking licence.

Regulation and Protection

This is where Monzo and ANNA differ most fundamentally, and it's worth understanding before you decide where to hold significant balances.

Monzo Bank Limited holds a full UK banking licence, authorised by the Prudential Regulation Authority and regulated by the FCA and PRA under Financial Services Register number 730427. Eligible business deposits are FSCS-protected up to £120,000, the same statutory guarantee that applies to any licensed UK bank.

ANNA isn't a bank. Cards and accounts are issued by PayrNet Limited, authorised by the FCA as an electronic money institution under Firm Reference Number 900594. Funds are safeguarded in line with the Electronic Money Regulations 2011, which keeps customer money ring-fenced from the company's own funds, but this is a different, contractual form of protection rather than the statutory FSCS guarantee that covers Monzo. In practice, this only becomes material if the provider fails. For day-to-day running costs, it makes little difference. For businesses holding larger cash reserves, it's a meaningful distinction worth weighing.

Common Misconceptions About Monzo and ANNA

"ANNA is a bank." It isn't. ANNA is an e-money institution. Monzo holds a full UK banking licence. Only Monzo's deposits carry FSCS protection.

"Monzo and ANNA are free." Monzo's Lite plan genuinely has no ongoing charges. ANNA's Pay As You Go plan has no monthly fee either, but its 0.95% commission on incoming payments means it isn't free in practice for a business taking regular client payments.

"Any business can open a Monzo account." Monzo excludes LLPs, partnerships, trusts, charities and several other structures, accepting only sole traders and UK limited companies.

"ANNA files your taxes automatically." The running tax estimate is included on every plan, but full filing of VAT, Corporation Tax and payroll only comes with the paid +Taxes add-on, and that's limited to companies, not sole traders.

"You need a paid plan to get invoicing." Not with ANNA, where invoicing is included even on the free Pay As You Go plan. With Monzo, invoicing only appears once you upgrade to Pro.

What Real Customers Say About Monzo and ANNA

Monzo's brand-wide Trustpilot rating sits at 4.6 out of 5 from more than 68,000 reviews as of August 2026, though this spans both personal and business banking rather than isolating business-account sentiment specifically. Recurring praise covers the speed and clarity of the app, alongside a fast onboarding experience compared with switching from a high-street bank. The most consistent complaint concerns account restrictions or freezes during compliance checks, resolved through in-app chat that some reviewers find slow for anything urgent.

ANNA also scores 4.6 out of 5 on Trustpilot, though from a considerably smaller base of around 5,500 reviews as of August 2026. Positive reviews frequently mention the tax and invoicing tools, along with responsive customer support. As with Monzo, the main recurring criticism involves account suspensions during payment reviews, with some reviewers reporting delays getting funds released even after providing the requested documentation.

Reddit sentiment for both mirrors this pattern in our experience researching the space: broad satisfaction with everyday use, set against sharper frustration whenever an account gets flagged for a compliance check.

Who Should Consider Monzo?

Monzo may be a good fit if your business:

• Is a sole trader or UK limited company banking mainly in GBP

• Wants free, unlimited UK transfers with no ongoing commission on payments

• Values FSCS protection on deposits above £85,000

• Might need an overdraft as an eligible limited company

• Would rather pay a flat £9 a month for invoicing and accounting tools than a per-transaction commission

If you're weighing Monzo against other free-banking options, our guide to bank accounts for new businesses is worth reading alongside this one.

Who Should Consider ANNA?

ANNA may be better suited if you:

• Operate as an LLP or partnership, structures Monzo doesn't support at all

• Want invoicing included from day one, without needing to upgrade first

• Would value a live, running tax estimate rather than working it out at year-end

• Are a limited company willing to pay for VAT, Corporation Tax and payroll to be filed automatically

• Take payments infrequently enough that PAYG's commission model works out cheaper than a flat monthly fee

FAQs About Monzo and ANNA

Is Monzo or ANNA better for a limited company?

Both accept UK limited companies. Monzo suits companies that want free banking with the option of an overdraft, while ANNA suits companies that want tax filing handled inside the account, at an additional cost through the +Taxes add-on.

Can sole traders use Monzo or ANNA?

Both accept sole traders. Monzo's Lite plan is free and includes MTD-ready tax filing at no extra cost. ANNA's Pay As You Go plan is also free but charges commission on incoming payments.

Can I open an ANNA or Monzo account as an LLP?

ANNA accepts LLPs and partnerships. Monzo doesn't, restricting eligibility to sole traders and UK limited companies only.

Are Monzo or ANNA accounts FSCS protected?

Monzo is, up to £120,000, as a fully licensed UK bank. ANNA isn't a bank, so its main account relies on e-money safeguarding rather than FSCS cover. ANNA's separate savings account, provided by Griffin Bank, does carry FSCS protection.

Does Monzo or ANNA offer free invoicing?

ANNA includes invoicing on every plan, including its free tier. Monzo only includes invoicing from its Pro plan upwards, at £9 a month.

Can I get an overdraft with Monzo or ANNA?

Monzo offers an arranged overdraft to eligible sole traders (up to £3,000) and some limited companies (up to £5,000). ANNA doesn't offer an overdraft on any plan.

Does ANNA really do your taxes for you?

ANNA calculates a running tax estimate on every plan for free. Full filing of VAT, Corporation Tax and payroll requires the paid +Taxes add-on, available to limited companies only.

Alternatives to Monzo and ANNA

You may want to explore other business accounts if you:

• Need multi-currency accounts and FX at interbank rates, worth comparing against Revolut or Wise

• Are a partnership wanting a free banking option beyond ANNA, worth comparing against Tide

• Want a permanently free account bundled with accounting software from a licensed bank rather than an e-money institution, worth comparing against Mettle

• Trade heavily in cash and need fee-free deposits at a wider branch network

In these cases, it's worth comparing other business bank account providers, or checking eligibility for smaller, newer businesses against our startup bank accounts guide.

If you're switching from an existing provider, our switching guide explains how the Current Account Switch Service works.

Our Verdict: Monzo or ANNA?

If your priority is free, no-catch UK banking with FSCS protection and the option of an overdraft, Monzo is the stronger choice, and in our experience its Lite plan genuinely holds up to that "no monthly fee" promise for a sole trader or limited company banking mainly in GBP.

If your priority is getting tax admin off your plate, particularly as an LLP, partnership or a limited company that would rather pay for automated VAT and Corporation Tax filing than manage it separately, ANNA justifies its higher price tag. Its broader eligibility alone makes it the only realistic option here for LLPs and partnerships, since Monzo excludes both outright.

Neither is the right pick for a business holding large cash reserves and wanting maximum statutory protection with the lowest possible running cost, in which case Monzo's Lite plan is hard to beat. And neither suits a business trading heavily in multiple currencies, where a dedicated multi-currency provider will serve you better than either.