Monzo vs Barclays: Business Bank Account Comparison

If you're comparing Monzo with other digital providers, our Starling vs Monzo comparison and Tide vs Monzo comparison show how it holds up.

What Barclays Is Designed For

Barclays is built for businesses that want a high street bank: branch and Post Office access, a relationship team once you're established, and borrowing from the same bank that holds your account. It suits sole traders, partnerships and limited companies that handle cash or cheques, or expect to need credit.

Key Characteristics of Barclays

• Free first year: no monthly fee for 12 months if you don't already have a Barclays business account, then £8.50 a month.

• Everyday payments: simple electronic payments (Faster Payments, Direct Debits and standing orders) are free, as are debit card payments.

• Cash and cheques: cash withdrawals from cash machines, the Post Office and self-service devices are free. Paying cash in costs 60p per £100 at the Post Office or a self-service device, and £1.20 per £100 at a branch counter.

• Accounting software: free Sage Accounting or Sage Accounting Sole Trader for 12 months, then 50% off. Barclays values the Plus tier at up to £708 a year.

• Support: branches, telephone and online banking. Established businesses get a relationship team and multi-director account access.

• International payments: payments in over 50 currencies through the Barclays International Payments Service (BIPS), plus foreign currency accounts.

• Borrowing: arranged overdrafts of up to £50,000 online, and business loans from £1,000 up to £25 million, according to Barclays' website.

• Switching: available through CASS.

Trade-Offs to Consider

• The £8.50 monthly fee applies from month 13, however lightly you use the account. That's £102 a year.

• Cash and cheque handling carries charges. Cheques paid in through the app cost 60p each, and £1.20 each at a counter. Cheques you write cost 60p each.

• Payments that need staff help cost more: £1.50 for an assisted electronic payment, and £25 for a same-day CHAPS payment (£15 online).

• International payments cost £15 online or £25 with staff help, plus a currency conversion charge of up to 2%. Receiving an international payment over £100 costs £6, though euro payments from the EEA are free.

• No invoicing in the account itself. After the free year, Sage costs half its normal price.

• The application asks for more detail than an app-only account: addresses for the past three years, your trading address and turnover, and at least one UK resident on the application. Setup can take longer as a result.

Barclays works well if you need cash handling, branch support or a realistic route to larger borrowing. It's harder to justify for a low-volume, sterling-only business that never visits a branch.

If you're weighing a digital bank against a high street one, our Starling vs HSBC comparison looks at the same trade-off.

How Much Do Monzo and Barclays Cost?

Monzo Pricing

Monzo's Lite plan has no monthly fee. Pro costs £9 a month (first month free), and Team starts at £25 a month. Monzo's published fee sheet shows UK payments, Direct Debits and standing orders at £0 on every plan, with no VAT added to the monthly fees. We checked Monzo's plans page and business fee information in October 2026.

Other charges to know about:

• Cash deposits: £1 per deposit at any PayPoint or Post Office.

• ATM withdrawals: free in the UK and the EEA. Outside the EEA, the first £200 in a rolling 30 days is free, then 3%.

• Foreign card payments: £0.

• Receiving foreign currency: 1% conversion fee, capped at £1,000 per payment.

• Sending money abroad: a fixed fee of no more than £9, plus a variable fee between 0% and 1.80%, depending on the currency and destination.

• Arranged overdraft: 39.0% EAR (effective annual rate, variable) for most sole traders, with rates of 29.0% or 39.0% on offer. Eligible limited companies are quoted a representative 35.9% EAR, plus an annual arrangement fee of £20 to £100 and a personal guarantee.

Monzo has said its personal account pricing for international transfers changes on 1 November 2026. We haven't seen the same notice on the business fee sheet, so check it before you send a large payment.

Barclays Pricing

Barclays charges nothing per month for the first 12 months if you don't already hold a Barclays business account. After that, the fee is £8.50 a month. Barclays shows this fee without VAT added. We checked Barclays' business current account page and tariff in October 2026.

Standard transactions are free: simple electronic payments, debit card payments and cash withdrawals at cash machines, the Post Office and self-service devices. Other charges include:

• Cash in: 60p per £100 at the Post Office or a self-service device. £1.20 per £100 at a branch counter.

• Cheques in: 60p each through the app or a self-service device. £1.20 each at a counter.

• Cheques out: 60p each.

• Assisted electronic payments: £1.50 each.

• Same-day CHAPS payments: £15 online, £25 with staff help.

• International payments (BIPS): £15 online, £25 with staff help, plus a currency conversion charge of up to 2% that applies to payments above £25,000.

• Receiving international payments: £6 for payments over £100, with euro payments from the EEA free.

Barclays' online price plan summary describes the 60p cash-in charge as "60p each", while its full tariff says 60p per £100. We've used the tariff figure below. If the per-deposit reading applies to you, Barclays' cash costs will be lower than shown.

What Do You Actually Pay Each Month?

To show how the fee structures play out, we priced five common business patterns using each provider's published fees. Monzo figures use the Lite plan unless stated.

Calculated from Monzo's business fee information and plans page, and Barclays' tariff and international payments page. International figures are ceilings: Monzo's £9 fixed fee plus 1.80%, and Barclays' £15 or £6 fee plus a 2% conversion charge. Your actual cost depends on the currency and is shown before you pay. Barclays cash costs use 60p per £100.

The result is clear. For domestic banking with little cash, Monzo Lite costs nothing, and Barclays costs nothing only for the first year. For cash, the picture is more mixed than you might expect. At 60p per £100, Barclays' Post Office charge is lower than Monzo's flat £1 only on deposits under about £167. Above that, Monzo's flat fee is cheaper per deposit, though Barclays has no £3,000 or £10,000 monthly cap that we found.

What Does Each Cost Over Two Years?

Monthly fees only, before transaction charges. Barclays' free year applies only if you don't already hold a Barclays business account.

Monzo vs Barclays: Pros and Cons

Feature Comparison: Monzo vs Barclays

Payments and Transfers

Monzo charges nothing for UK transfers, Direct Debits or standing orders on any plan. Barclays charges nothing for simple electronic payments, but adds £1.50 for an assisted electronic payment and £15 to £25 for same-day CHAPS payments. For a business that makes mostly standard online payments, the two are level. The difference shows up when you need a staff-assisted or same-day payment.

International Payments and Currency

Neither account is built for heavy foreign currency use. Monzo holds pounds only. You can pay suppliers in 40+ currencies, and the fee and rate appear before you send. Barclays supports over 50 currencies and offers foreign currency accounts, but its payments cost £15 to £25 plus a conversion charge of up to 2%.

In practice, on the published ceilings we priced, Monzo works out slightly cheaper for a £10,000 payment, and its fee is easier to see in advance. If you receive foreign currency often, Monzo's 1% conversion fee and Barclays' £6 fee plus a conversion charge both add up. A dedicated multi-currency account may suit you better.

Our Monzo vs Wise comparison and Monzo vs Revolut comparison cover that route.

Account Access and Support

Monzo has no branches. It lists 24/7 customer support through the app, and phone support from 7 am to 8 pm, seven days a week, for most queries, with urgent queries handled round the clock. Barclays offers branches, telephone banking and online banking, and established businesses get a relationship team. If you want to talk to a person in a building, Barclays is the only option here.

Cards and Cash Handling

Both accounts include a debit card. Monzo Pro adds virtual cards, and Team adds expense cards with limits you set. Barclays doesn't charge for debit card payments or for cash withdrawals at cash machines, the Post Office or self-service devices. For paying in cash, see the pricing section above.

If you take a lot of cash, our guide to business bank accounts for cash handling covers providers built around it.

Invoicing and Admin

Monzo's Pro plan includes invoicing, Tax Pots, auto-exports and custom categories. Lite includes MTD software but not invoicing. Barclays doesn't include invoicing in the account. Instead, it offers Sage Accounting, which covers invoicing and accounting, free for 12 months and then at half price.

Accounting and Tax Support

Monzo connects to Xero, FreeAgent, Sage and QuickBooks on Pro and Team, and adds free Xero for 6 or 8 months if you're new to it. Barclays' offer is Sage only. It's worth noting that Barclays' offer ends if you close all your business current accounts.

For more on choosing an account with bookkeeping built in, see our guide to business bank accounts with accounting and our round-up of business bank accounts with MTD software.

Overdraft and Lending

This is where Barclays is clearly stronger. Monzo offers overdrafts of up to £3,000 to eligible sole traders, and £500 to £5,000 to eligible limited companies with a personal guarantee. Its business loans for sole traders run from £200 to £25,000, with a representative APR (annual percentage rate) of 19.9% on loans above £10,000 and 29.3% on loans up to £10,000. Limited company directors can check eligibility in the app, and Monzo refers some applicants to iwoca, a lender it earns commission from.

Barclays says its arranged overdrafts go up to £50,000 online, and its loans run from £1,000 to £25 million, so there's more room to grow with one bank. Rates and fees depend on the limit and your circumstances, so ask for a quote before you compare.

Savings

Monzo's Savings Pots are advertised at up to 3.25% AER (variable) and are available inside the app. Barclays' current account pays no interest, and its business savings accounts are separate products, so check the current rate before you open one.

Are Monzo and Barclays FSCS Protected?

Yes. Both are fully licensed UK banks, regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). Eligible deposits with each are covered by the FSCS up to £120,000 per depositor, following the PRA's increase to the limit from 1 December 2025. Monzo's FSCS information sheet, dated 23 December 2025, confirms the £120,000 figure.

This means your money is protected to the same statutory level with either provider. The choice comes down to fees, features and service, not safety.

Three further points are easy to miss:

• The limit applies per bank, not per account. Monzo's sheet explains that balances are added together. A current account and a savings pot with Monzo share one £120,000 limit.

• Sole traders: your personal and business balances with the same bank count towards one limit. A limited company gets its own separate limit.

• Excluded businesses: financial firms, insurers, investment firms, pension funds and public authorities aren't eligible for FSCS deposit protection.

Common Misconceptions About Monzo and Barclays

"Monzo Business is free." Only the Lite plan is. Pro costs £9 a month, and Team starts at £25. Invoicing, Tax Pots and accounting integrations all sit on the paid plans.

"Monzo Pro costs £5 a month." It did for several years, and some older pages still say so. New Pro customers have paid £9 since late 2024.

"Barclays business banking is free." It's free for the first 12 months, and only if you don't already hold a Barclays business account. After that, the fee is £8.50 a month.

"Barclays gives you free FreshBooks." Not any more. Barclays now offers Sage accounting software, free for 12 months and then 50% off. Customers previously referred to FreshBooks are being moved across.

"Digital banks can't take cash, and high street banks always do it cheaper." Monzo accepts cash at the Post Office and PayPoint for £1 a deposit, within monthly limits. On Barclays' tariff of 60p per £100, its Post Office charge is only lower on deposits under about £167.

What Real Customers Say on Monzo and Barclays

Monzo holds a Trustpilot rating of around 4.6 out of 5 from more than 72,000 reviews, as of late September 2026. Barclays holds around 4.1 out of 5 from more than 25,000 reviews, as of the same date. Both scores cover each brand as a whole, and personal customers make up most of the reviews, so they aren't a reliable guide to the business account.

Positive Monzo reviews focus on how easy the app is to use and on instant payment notifications. Negative reviews tend to focus on account restrictions and closures, and on relying on in-app chat when something goes wrong. Positive Barclays reviews often mention helpful staff. Negative reviews tend to focus on slow processes and problems with the app.

Who Should Consider Monzo?

Monzo is worth considering if your business:

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

• Wants a £0 account with no time limit

• Rarely pays in cash, or pays in small amounts

• Wants to add invoicing, Tax Pots and accounting links for £9 a month

• Is comfortable running its banking from an app

If you're starting a new business, our guide to the best bank accounts for new businesses is a useful next read.

Who Should Consider Barclays?

Barclays is worth considering if your business:

• Is a partnership, or a sole trader or limited company that wants a high street bank

• Regularly pays in cash or cheques, and values the Post Office and branch counters

• Wants an overdraft above £5,000, or a loan from the same bank as its account

• Wants a relationship team and multi-director access as it grows

• Would use Sage and wants it free for the first year

FAQs About Monzo and Barclays

Is Monzo or Barclays cheaper for businesses?

Monzo. Its Lite plan costs £0 a month with no time limit, while Barclays costs £0 for 12 months and then £8.50 a month. Barclays can work out cheaper for small cash deposits, so it depends on how you take money.

Can sole traders open a Monzo or Barclays business account?

Yes, either. Monzo accepts sole traders and UK limited company directors. Barclays accepts sole traders, limited companies and partnerships.

Can partnerships open a Monzo or Barclays business account?

They can with Barclays. They can't with Monzo. The latter doesn't support partnerships, LLPs, charities, community interest companies or public limited companies.

Are Monzo and Barclays FSCS protected?

Yes, for eligible deposits up to £120,000 per depositor. Both are fully licensed UK banks. The limit applies to your total balance with each bank.

Can I deposit cash with Monzo or Barclays?

Yes, with both. Monzo accepts cash at the Post Office and PayPoint for £1 a deposit, up to £3,000 a calendar month for sole traders and £10,000 for limited companies. Barclays accepts cash at the Post Office, self-service machines and branches, with charges of 60p to £1.20 per £100.

Does Monzo or Barclays offer a business overdraft?

Yes, both do. Barclays offers far larger limits. Monzo offers up to £3,000 to sole traders and £500 to £5,000 to limited companies. Barclays says its arranged overdrafts go up to £50,000, subject to status.

Is Monzo or Barclays better for international payments?

Neither is a specialist. On the published ceilings we priced, Monzo is slightly cheaper for a £10,000 payment, and it shows the fee upfront. If you trade abroad often, a multi-currency account may suit you better.

Can I switch my business account to Monzo or Barclays automatically?

Yes, if your business has a turnover under £6.5 million and fewer than 50 employees. Both Monzo and Barclays take part in the Current Account Switch Service.

Our guide to the Current Account Switch Service for businesses explains who qualifies.

Does Monzo or Barclays have invoicing included?

Monzo includes invoicing on Pro and Team, but not on Lite. Barclays doesn't include invoicing in the account, though its Sage offer covers it for the first 12 months.

Alternatives to Monzo and Barclays

• If you want a free digital account from another fully licensed bank, our Starling vs Monzo comparison looks at how Starling's free account compares.

• If you're weighing Monzo against another digital provider, our Tide vs Monzo comparison and Monzo vs Mettle comparison cover the options.

• If you trade abroad, our Monzo vs Revolut comparison and Monzo vs Wise comparison cover multi-currency routes.

• If a monthly fee is a deal-breaker, our free business bank accounts page compares accounts with no monthly charge.

• If you're comparing what business accounts typically cost, our guide to how much business bank accounts cost puts both providers in context.

• If you're planning to move providers, our switching guide explains how the Current Account Switch Service works and what to check before you move.

Our Verdict: Monzo or Barclays?

If you're a sole trader or limited company that banks mainly in sterling and rarely handles cash, Monzo is the stronger starting point. The Lite plan costs nothing to hold, UK payments are free, and Pro adds invoicing and accounting links for £9 a month if you need them. If you don't use a branch, Barclays' £8.50 monthly fee buys you very little that Monzo Lite doesn't already give you.

If you're a partnership, take regular cash or cheques, or expect to need an overdraft above £5,000, Barclays is the better fit. The first year is free, and the fee after that pays for branch access, a relationship team and a much larger borrowing ceiling. It's also the only one of the two that accepts partnerships.

Neither is right for every business. A cash-heavy business might use Barclays as its main account and add a free Monzo Lite account for digital payments. A growing company might start on Monzo and move to Barclays when it needs larger borrowing. Fees, eligibility rules and offers change often, so check each provider's current terms directly before you apply.