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Starling Bank and Monzo Business are two of the best‑known digital banks in the UK, offering app‑first business accounts designed to replace traditional high street banking. While they share a similar challenger bank DNA, their business accounts are built with slightly different priorities in mind.
Starling focuses on offering a free business current account with strong protections and straightforward pricing. Monzo Business leans more towards simplicity and usability, with optional paid plans that unlock extra tools.
This guide compares Starling vs Monzo Business across features, fees, regulation, and which types of SMEs each account is best suited to.
Starling vs Monzo: At a Glance Comparison
Starling Bank | Monzo Business | |
Account model | Fully licensed UK bank | Fully licensed UK bank |
Core focus | Traditional banking, but digital | Simple, app‑first |
Typical users | Sole traders, limited companies, SMEs | Freelancers, sole traders, small businesses |
Monthly fees | Free | Free and paid |
Cash deposits | Via Post Office (fees apply) | Via PayPoint (fees apply) |
Lending | Available subject to approval | Limited |
FSCS protection | Yes (up to £85,000) | Yes (up to £85,000) |
Business Bank Account Offers and Fees
What Starling Business is Designed For
Starling Business is built to feel like a complete business current account. It offers core banking features as standard, with no monthly fee, and places a strong emphasis on security, stability, and regulatory protection.
Rather than upselling add‑ons, Starling keeps its product relatively simple and inclusive.
Key Characteristics of Starling
Free business current account with no monthly fee
Fully licensed UK bank
FSCS protection on eligible deposits
Built‑in invoicing and spending categories
Supports overdrafts and business loans (subject to approval)
Available to sole traders and limited companies
Trade‑Offs to Consider
Fewer premium upgrades or add‑ons
Less customisation than some fintech competitors
Eligibility criteria can be stricter for newer businesses
Starling often appeals to businesses that want the reassurance of a traditional bank, delivered via a digital experience.
What Monzo Business is Designed For
Monzo Business is designed around ease of use and clarity. Its interface, notifications, and budgeting tools are built to help small business owners stay on top of cash flow with minimal effort.
While the free account covers the basics, paid plans unlock additional tools aimed at growing businesses.
Key Characteristics of Monzo
App‑first business banking
Free Lite account available
Paid plans unlock invoicing, tax pots, and advanced insights
FSCS‑protected deposits
Integrates with popular accounting software
Available to sole traders and limited companies
Trade‑Offs to Consider
Monthly fees apply for advanced features
Lending options are more limited
Fewer built‑in banking features on the free tier
Monzo Business tends to suit freelancers and small companies that value simplicity and visual money management tools.
How They Charge
Starling Bank Pricing
No monthly account fee
No paid plans or tiers
Charges apply for services like cash handling
Lending products priced separately
Starling’s pricing is straightforward, with fewer decisions to make.
Monzo Business Pricing
Free Lite plan available
Paid plans charge a monthly fee
Higher tiers unlock invoicing, tax tools, and integrations
Cash deposit and card charges may apply
Monzo’s tiered pricing suits businesses that want optional extras as they grow.
Feature Comparison: Starling vs Monzo
Everyday Banking
Payments and transfers: Both support Faster Payments, Direct Debits, and UK transfers
Debit cards: Both offer Mastercard business debit cards
Account access: Mobile apps with desktop access
Invoicing and Admin
Starling: Built‑in invoicing included at no extra cost
Monzo: Invoicing available on paid plans
Budgeting and Insights
Starling: Categories and basic reporting
Monzo: Strong budgeting tools, notifications, and cash flow insights
Accounting Integrations
Starling: Integrates with tools like Xero, FreeAgent, and QuickBooks
Monzo: Accounting integrations available, with more options on paid plans
Cash Handling
Starling: Cash deposits via the Post Office
Monzo: Cash deposits via PayPoint locations
Regulation and Protection
Both Starling and Monzo operate as fully licensed UK banks, rather than e‑money institutions (EMIs).
The FSCS protects eligible deposits up to £85,000
Funds benefit from full UK banking regulation
Money is covered even if the bank were to fail
For businesses that prioritise deposit protection and regulatory certainty, both providers offer bank‑level reassurance.
Who Should Consider Starling?
Starling Business may be a good fit if your company:
Wants a free, fully featured business bank account
Values FSCS protection
May need overdrafts or lending in future
Prefers fewer pricing tiers and add‑ons
Wants banking that feels close to a high street bank
Who Should Consider Monzo?
Monzo Business may suit businesses that:
Prefer a clean, intuitive app experience
Want strong budgeting and spending insights
Are happy to pay for premium tools
Operate with a small team or as a sole trader
Value clarity and ease over traditional banking features
Alternatives to Starling and Monzo
You may want to compare other business bank accounts if your company:
Needs complex international banking
Handles large volumes of cash
Wants a dedicated relationship manager
Operates in a specialist sector
In those cases, it’s worth comparing other business bank accounts to find a more suitable provider.
