I got to the last page of my Monzo Business Account application but decided to reconsider things for a couple of days before submitting my application. Unfortunately, I have decided not to proceed because the pricing structure doesn’t work for me. So I won’t be taking up Monzo for my business banking.
I’m an IT Contractor who provides services through a limited company. I send one invoice a month to my client, pay for a handful of expenses on my card, and withdraw the rest as income. Its about 10 transactions per-month max.
With Tide, my bank-charges are less than £1 per month. Rightly so - why should I pay the same amount as a larger company which makes hundreds/thousands of transactions per month? £60/year doesn’t sit well with me. Essentially, Monzo business banking would cost £0.50 - £1.00 per transaction based on my amount of use. That isn’t a smart charging model.
Furthermore, I often take 6-12 months out of work between assignments to pursue other activities like travel. When I do this, Tide charges me nothing. With a Monthly charge on Monzo, I will be paying Monzo just for holding my account open.
So there you have it! As much as I have been waiting in anticipation of the switch to Monzo, I will be sticking with Tide. Hopefully Monzo will take this feedback on and tweak their pricing model to make it fairer for smaller businesses like mine.
It feels like Monzo have launched a challenger business account, with the pricing model of a traditional business bank account.