Monzo vs Starling Business

The decision in one paragraph

Both are licensed UK banks with full FSCS protection, both have free tiers, and both have excellent apps. Monzo wins on the two things that are measurable: it ranks first of 17 UK providers for business service quality in the independent CMA survey, and it pays 1.30% AER on its free tier rising to 3.25% on Team. Starling pays nothing at all on business balances. Starling remains the better choice if you need an overdraft, cheque handling, or free accounting integrations.

Service: measured, not asserted

UK banks are legally required to publish independent service data under the CMA's Retail Banking Order. In the August 2026 results, surveyed across roughly 1,200 customers per provider, Monzo came first of 17 for overall business service quality at 85% and first for online and mobile banking at 90%. Starling came third and second.

Both are excellent by the standards of the market. But if service is your priority, the data points one way.

Interest: the difference most reviews miss

Monzo's Instant Access Savings Pot pays 1.30% AER on the free Lite plan and up to 3.25% on Team, with instant access, no minimum and FSCS protection on Monzo's own licence.

Starling pays nothing on business balances. Its Easy Saver at 4.00% and Fixed Saver at 3.70% are personal products — each carries the condition "Starling personal current account required". Business Spaces organise your money without earning on it.

On a £25,000 reserve that is £325 a year from Monzo Lite, or £513 net from Monzo Team after its £300 fee, against zero from Starling. For any business holding a tax reserve, that outweighs the £9 monthly fee several times over.

Where Starling still wins outright

Overdraft pricing. Both lend now — Monzo added sole trader overdrafts to £3,000 and company overdrafts to £5,000, alongside loans to £25,000. But Monzo's representative 39.0% EAR on a sole trader overdraft is expensive money, and Starling's facility is priced more conventionally. Compare the rate you are actually offered rather than assuming either is cheap.

Cheques. Both take them now — Starling by imaging up to a limit, Monzo in-app up to £500 and by post above that. Monzo’s in-app deposits take up to four days to clear, which is the practical difference.

Free integrations. Xero, QuickBooks and FreeAgent connect on Starling's free tier. Monzo charges £108 a year for the same thing — though you would be paying that anyway to get the better savings rate.

Eligibility. Monzo requires every director and person of significant control to be UK resident. One overseas co-founder rules it out entirely.

Cash: run your own numbers

Monzo charges a flat fee per deposit; Starling charges a percentage with a minimum. A business making one £2,000 deposit a month pays Monzo about £12 a year and Starling about £168. A business making four £150 deposits a week pays Monzo about £192 and Starling about £576. The flat fee wins in both cases here — but at larger single deposits the percentage model catches up fast.

So which?

• Hold a meaningful balance: Monzo. Starling paying zero is a real annual cost.
• Care about service: Monzo, first in the country on the independent measure.
• Might need credit: either, but check the rate. Monzo is faster; Starling is usually cheaper.
• Paid by cheque: either, though Starling clears faster than Monzo’s four-day in-app deposit.
• Overseas co-founder: Starling. Monzo will decline.
• Tiny balance, no software, no cash: either, and Starling's free tier is marginally simpler.

Both free tiers cost nothing to hold, so opening both is a legitimate strategy — and gives you a working account if one is restricted during a compliance review.