Monzo vs Starling Business Account 2026: Fees, Features & Which Is Better for Freelancers

For UK freelancers and sole traders, choosing the right business bank account is as important as choosing the right accounting software. Monzo and Starling have emerged as the two most popular digital‑first challenger banks, each offering slick apps, low fees, and features tailored to self‑employed professionals. But which one actually serves freelancers better in 2026?

We’ve analysed every fee, feature, integration, and user review to bring you the definitive head‑to‑head comparison. Whether you’re a freelance writer, designer, consultant, or tradesperson, this guide will help you decide which account saves you money and time.

1. At a Glance: Monzo vs Starling Business Accounts

Both Monzo and Starling are FCA‑authorised, offer app‑only banking, and have built loyal followings among freelancers. Here’s how they stack up on the essentials:

2. Detailed Fee Breakdown

Understanding exactly what you’ll pay – and when – is crucial. We’ve dissected every possible charge for both banks.

Monzo Business Account Fees

• Lite (£5/month, free first 12 months): No monthly fee for year one, then £5. Includes free UK payments, £1/month cash deposit allowance (then £3 per deposit at Post Office), 2% fee on international transfers (min £2, max £30).
• Pro (£25/month): Includes all Lite features plus: free SEPA payments, 0% FX markup on currency transfers up to £5,000/month, multi‑user access (up to 5 people), receipt scanning, and recurring invoices.
• FX markup on card spend: 3% for Lite, 0% for Pro (up to £5,000/month then 2%).
• ATM withdrawals: £200 free/month (Lite) then 3% fee; Pro includes £500 free/month.

Starling Business Account Fees

• Standard (£0/month): Free UK payments, no monthly fee, free cash deposits up to £1,000/month (then 0.7% fee via PayPoint), free ATM withdrawals in UK and Europe, 2% FX fee on non‑GBP card spend.
• Toolkit (£7/month): Adds expense categorisation, receipt capture, and tax estimates.
• Cashback (£15/month): Includes Toolkit features plus 0.5% cashback on selected business spending (up to £3,000/year).
• International payments: SWIFT payments £5.50, SEPA €0.4‑€1, with 0.4% FX fee (min £2, max £30).

3. Account Features Deep Dive

Beyond fees, the day‑to‑day experience matters. Here’s how the apps, tools, and integrations compare.

Mobile App & User Experience

Monzo is famous for its intuitive, colourful app. Real‑time notifications, spending insights, and easy pot creation make managing cash flow a breeze. The business app mirrors the personal one, so if you already use Monzo personally, the learning curve is zero.

Starling offers a clean, no‑nonsense interface. It’s slightly more “professional” in feel, with detailed transaction tagging and search. Many freelancers appreciate the ability to attach receipts directly to transactions – a feature that’s free on Standard (unlike Monzo, which requires Pro for receipt scanning).

Invoicing & Getting Paid

Monzo allows you to create and send invoices from the app for free on all plans. Pro users get recurring invoices and payment links that can be shared via email or SMS. Payments go directly into your account.

Starling also offers free in‑app invoicing, with the option to connect to accounting software for automatic reconciliation. You can set up payment links via the app as well, though they are slightly less polished than Monzo’s.

Accounting Integrations

Both banks integrate with Xero, QuickBooks, and FreeAgent. Monzo uses an API that connects directly; Starling offers native connections as well as Zapier for custom workflows. In practice, both work seamlessly – though some users report that Monzo’s categorisation syncs slightly better with Xero.

4. Pros & Cons for Freelancers

Monzo Business – What freelancers love

• First year free on Lite: Great for testing the waters.
• Pro plan’s multi‑user access: Useful if you have an accountant or virtual assistant.
• 0% FX on Pro up to £5k/month: Ideal if you invoice overseas clients.
• Savings Pots: Set aside money for tax, VAT, or equipment – a game‑changer for cash‑flow management.

Monzo Business – The drawbacks

• Lite fee after year one: £60/year – not huge, but Starling’s Standard is perpetually free.
• Cash deposit fees: If you handle physical cash (e.g., tradespeople), Monzo can get expensive quickly.
• Receipt scanning only on Pro: Freelancers on Lite must use third‑party apps.

Starling Business – What freelancers love

• Genuinely free Standard account: No monthly fee, no minimum usage, free UK transactions.
• Free receipt capture on Standard: A huge plus for freelancers who need to track expenses.
• £1,000 free cash deposits per month: Tradespeople and market sellers benefit enormously.
• Cashback on selected spending (Cashback plan): If you spend a lot on business purchases, this can offset the £15/month fee.

Starling Business – The drawbacks

• 2% FX fee on card spend: Frequent international travellers may find Monzo Pro cheaper.
• Toolkit features cost extra: While the base account is free, useful tools like tax estimates cost £7/month.
• No joint business accounts: (Neither bank offers this, but some freelancers with partners might want it.)

5. Customer Support & Reliability

Both banks are app‑only, so support is primarily via in‑app chat, email, or phone (for premium plans).

• Monzo: In‑app chat is fast (usually under 5 minutes). Pro customers get priority support. The community forum is active for peer help. However, some users report longer resolution times for complex issues.
• Starling: In‑app chat is responsive, and phone support is available to all customers (not just premium). Starling’s customer service ratings are consistently high, with 4.6 on Trustpilot (Feb 2026).

Both banks have near‑100% uptime, though Monzo suffered a few high‑profile outages in 2024‑25. Starling has a slightly better track record for reliability.

6. Real Freelancer Case Studies

7. Which One Is Better for You?

Use this decision framework based on your freelancing profile:

• Choose Starling Standard if: You’re a sole trader with no cash deposits, or if you handle moderate cash (up to £1k/month). You want a completely free account and don’t need advanced invoicing.
• Choose Starling Toolkit/Cashback if: You want automated expense tracking and tax estimates, or you can earn cashback that outweighs the £7‑15 fee.
• Choose Monzo Lite if: You prefer Monzo’s app, want to try it free for a year, and don’t handle cash. After year one, consider whether the £5/month is worth it.
• Choose Monzo Pro if: You frequently spend abroad (0% FX), need multi‑user access, or want recurring invoices. The £25/month is steep, but for high‑spending freelancers it pays for itself.

8. How to Open an Account

Both banks allow you to open a business account entirely through their apps. Here’s what you’ll need:

9. Alternatives to Consider

While Monzo and Starling dominate the UK digital business banking space, other options may suit specific needs:

• Tide: Popular among freelancers, offers excellent invoicing and expense tools, but has a monthly fee (£4.99‑£19.99) and less polished app.
• Revolut Business: Great for multi‑currency, with competitive FX rates, but customer support can be slow.
• Monese: Quick to open, but higher fees and less tailored for freelancers.
• High street banks (Barclays, NatWest): Often have physical branches but come with higher monthly fees and dated apps.

Final Verdict

For the vast majority of freelancers, Starling’s Standard account is the better choice. It’s genuinely free, includes receipt capture, offers a generous cash deposit allowance, and has a slightly higher customer satisfaction rating. The only reason to pay is if you need advanced features like tax estimates (Toolkit) or cashback (Cashback).

Monzo shines for freelancers with significant international spending – its Pro plan’s 0% FX on card spend can save hundreds annually. It’s also a great option if you prefer Monzo’s app design and want to use its innovative Pots feature for tax savings.

Ultimately, both are excellent banks that will serve you well. The choice comes down to your specific spending habits and whether you’re willing to pay for premium features. Use the decision matrix above, and remember you can always switch later if your needs change.