Stopping Monzo: What You Need to Know

What is Monzo?

Monzo is a digital bank based in the United Kingdom that has revolutionised how millions of people manage their money since launching in 2015. Unlike traditional high street banks, Monzo operates entirely through a mobile app, offering current accounts with a distinctive coral-coloured debit card that's become instantly recognisable across the UK.

What sets Monzo apart is its focus on helping customers understand and control their spending in real-time. Every transaction triggers an instant notification on your phone, and the app automatically categorises your spending into budgets like groceries, transport, and entertainment. This approach has made Monzo particularly popular with younger customers and those who want a more transparent relationship with their finances.

The bank holds a full UK banking licence from the Prudential Regulation Authority and Financial Conduct Authority, which means your deposits are protected up to £85,000 under the Financial Services Compensation Scheme. This is crucial to understand because whilst Monzo may feel like a tech startup, it's a fully regulated bank with the same legal protections as traditional institutions.

Monzo serves over 7 million customers across the UK, offering everything from basic current accounts to premium banking packages with additional features. The company has expanded beyond simple current accounts to include savings pots, loans, mortgages, and business banking services. Despite this growth, the core proposition remains the same: banking that's transparent, easy to use, and built around your smartphone.

Plans, features and pricing

Monzo offers several account types designed to suit different banking needs and lifestyles. Understanding what you're actually paying for is essential before deciding whether to keep or cancel your account. Let me break down the current options so you can see exactly what each tier includes.

Free personal account

The standard Monzo current account costs absolutely nothing to maintain. You'll get a contactless debit card, instant spending notifications, automatic budgeting tools, and the ability to create savings pots within your account. You can withdraw up to £200 per month abroad without fees, though there's a 3% charge on withdrawals beyond that limit. This account includes basic overdraft facilities subject to approval, with rates varying based on your credit profile.

Most importantly for everyday banking, you'll have access to features like splitting bills with friends, freezing your card instantly if it's lost, and getting paid a day early if your employer uses Faster Payments. The free account is genuinely comprehensive, which is why many people find it meets all their banking needs without upgrading.

Monzo Plus

Priced at £5 per month, Monzo Plus adds several premium features to the basic account. You'll get a holographic card design (or choose from limited edition designs), advanced budgeting tools, and interest on your main balance up to £2,000. The foreign withdrawal limit increases to £400 per month without fees, making it more suitable for regular travellers within Europe.

Additionally, Plus members receive virtual cards for safer online shopping, the ability to create multiple spending pots with custom images, and access to credit tracker features. You'll also get fee-free cash withdrawals at most UK cash machines, though this is increasingly standard across UK banking anyway.

Monzo Premium

At £15 per month, Premium represents Monzo's top-tier offering. This includes everything in Plus, but extends the fee-free foreign withdrawal limit to £600 monthly and adds travel insurance for you and your family. You'll receive phone insurance covering loss, theft, and damage, plus breakdown cover if you're a driver.

Premium customers also get access to exclusive customer support with shorter wait times, metal card options, and higher interest rates on savings pots. The package aims to replace several standalone insurance policies, so it can represent good value if you'd otherwise pay separately for travel insurance, phone cover, and breakdown assistance.

Terms of service and cancellation policy

Understanding Monzo's terms of service is absolutely critical before you start the cancellation process. I've seen countless people make mistakes here that cost them time and sometimes money, so pay close attention to these details.

Account closure procedures

Monzo's terms state that you can close your account at any time, which sounds straightforward but comes with important conditions. Your account balance must be zero or positive before closure can be completed. This means you'll need to withdraw all funds or transfer them elsewhere, and ensure any pending transactions have cleared. Keep in mind that some transactions can take 3-5 working days to fully process, even if they look complete in your app.

If you have an overdraft, you must repay it in full before the account can be closed. Monzo won't close an account with an outstanding negative balance, and attempting to do so will simply delay the entire process. Additionally, any direct debits or standing orders must be cancelled or moved to another account before closure, as Monzo will reject closure requests if active payment instructions remain.

Notice periods and timing

For basic current accounts, there's technically no notice period required, though processing your closure request typically takes 5-10 working days once all conditions are met. However, if you're cancelling a Plus or Premium subscription, you'll want to time this carefully to avoid paying for another month you won't use.

Paid subscriptions work on a monthly billing cycle from your sign-up date, not the calendar month. If you cancel on day 20 of your cycle, you'll still be charged for the full month and retain access until day 30. Monzo doesn't offer pro-rata refunds for partial months, which is standard practice but catches many people off guard. This is why I always recommend cancelling paid tiers at least 3-4 days before your next billing date to ensure the request processes in time.

What happens to your data

Under UK banking regulations, Monzo must retain certain transaction records for six years after account closure for regulatory compliance and fraud prevention. However, they'll stop using your data for marketing purposes once you close your account. Your transaction history will no longer be accessible through the app once closure is complete, so download statements for any records you need before proceeding.

Fees and final charges

Most account closures involve no fees whatsoever, but there are exceptions that trip people up. If you've used your overdraft within the final month, you'll owe interest calculated daily up to the closure date. Any foreign transaction fees from recent spending abroad may also post after you've requested closure, so leave a small buffer in your account to cover these.

Additionally, if you've received any promotional bonuses or switching incentives, closing your account within a certain timeframe might trigger clawback provisions. I've seen Monzo reclaim switching bonuses when accounts close within 30-60 days of opening, so check your specific terms if you've recently received any incentives.

Why postal cancellation is the most reliable method

After processing thousands of account closures, I can tell you that sending cancellation requests by post creates a paper trail that protects you in ways digital methods simply cannot match. Let me explain why this matters specifically for banking services like Monzo.

Legal standing and proof

A posted letter sent via Recorded Delivery provides legally admissible proof that you've formally requested account closure. This is particularly important with financial institutions because disputes about whether cancellation was properly requested can affect your credit rating and create complications with outstanding payments. The signature confirmation and tracking reference from Royal Mail constitutes evidence that courts and financial ombudsmen recognise.

In contrast, app-based requests or in-app chat messages can be disputed or claimed to have never been received. I've worked with customers who insisted they'd cancelled through the app, only to find no record existed in the company's systems. With postal cancellation, you have independent third-party verification that your request was delivered.

Processing guarantees

When financial institutions receive formal written requests by post, they're typically routed to dedicated compliance teams rather than frontline customer service. These teams follow strict procedures and timelines, whereas app-based requests might sit in a general queue for days. Most importantly, postal requests trigger formal acknowledgement requirements under UK consumer law, whereas digital communications often don't.

Recorded Delivery also provides accountability through tracking. You'll know exactly when Monzo received your letter, which starts the clock on their response obligations. This removes any ambiguity about timing, which is crucial if you're trying to avoid another month's subscription charge on Plus or Premium accounts.

Avoiding technical issues

Digital banking apps occasionally experience outages, login issues, or technical glitches that prevent you from accessing account closure features. I've seen situations where customers couldn't access the app due to a lost phone or forgotten password, making postal cancellation their only reliable option. Additionally, some account states (like frozen accounts under investigation) may restrict app functionality whilst still allowing postal communication.

Complete guide to cancelling Monzo by post

Right, let's walk through the exact process for closing your Monzo account via post. I'll share the insider tips that make this smooth and hassle-free, plus warn you about the common mistakes that cause delays.

Before you write your letter

First and absolutely most important: prepare your account for closure before sending anything. Log into your Monzo app and check your balance. You need to transfer out all funds except perhaps £5-10 to cover any pending transactions that haven't yet appeared. I recommend keeping this small buffer for 3-4 days before sending your closure letter.

Next, make a complete list of all direct debits and standing orders connected to your Monzo account. You'll find these in the app under Payments. Move every single one to another bank account before proceeding. Missing even one will cause Monzo to reject your closure request, and you'll need to start the entire process again. This is the number one mistake I see people make.

If you have savings pots, empty them into your main balance first, then transfer everything out. Check for any pending transactions by looking at your recent activity for anything marked as \