Monzo
Weighted across nine legal categories. Lower is worse.
Executive summary
Monzo's current account terms are written in unusually plain English and are fairer to you than most consumer contracts. You get strong protections: FSCS deposit insurance, refunds for unauthorised payments and many fraud cases, a free route to the Financial Ombudsman, and no arbitration clause or class action waiver. Monzo can change the terms and its fees, and silence counts as accepting changes, but it must give 2 months notice for regulated services and will close your account fee-free if you refuse. Watch two things: Monzo can take money you owe it directly from your account, Pots and savings, and detailed data practices live in a separate privacy notice that you accept by using the account.
Category breakdown
1 of the nine categories are not addressed by this document, so they are left out rather than scored.
Acceptance of Terms & Scope
Contract formation and service boundaries
The scope is precisely defined: these terms cover only the Monzo Current Account, for personal use, for UK residents, and the whole document is written in plain language with a dated version history. Acceptance happens by using the app rather than a discrete signature step, but you cannot reach that point without an active, identity-verified account opening, so the browsewrap risk is low. Provisions for 16 to 17 year olds show age is considered, though no under-16 rule is stated here.
Key findings
- You agree to the terms by using the Monzo app, after an active account-opening process
- Scope is narrow and clear: personal current account only, UK residents only, no business use
- Plain-language drafting throughout, with fee information and cut-off times incorporated by reference
- Dated version 2.10 with 20 past versions publicly archived
- Special protections for 16 to 17 year olds: no credit products, no gambling payments, no unarranged overdraft fees
Evidence from the document
are between you and Monzo Bank Limited (Monzo/us/we) and you agree to them by using the Monzo app.
Your Monzo Current Account is for personal use only and mustn't be used for business purposes.
You must be a UK resident to have a Monzo account.
If you're under 18 you won't be able to apply for Monzo Flex, an arranged overdraft or a loan.
Recommendations
- Read the linked fee information and cut-off times documents, they are part of your contract
- Tell Monzo promptly if you move abroad, since UK residence is a condition of the account
- Do not run a business through the account, that breaches the terms and weakens your protections
User Accounts
Registration, suspension, and termination
Closure rights are unusually consumer-friendly: Monzo must give at least 2 months notice to close your account, rising to 90 days from 28 April 2026, and immediate closure is limited to a specific list of serious causes such as breaking the law or giving false information, not open-ended sole discretion. You can cancel within 14 days or close at any time, and complaints can go to the Financial Ombudsman. The document does not describe an internal appeal process for closure decisions or a data export mechanism beyond bank statements.
Key findings
- Monzo needs at least 2 months notice to close your account, 90 days after 28 April 2026
- Immediate closure only for enumerated causes, such as illegality, false information, breach of terms, or abusive behaviour
- You can cancel within 14 days of opening or close the account at any time
- Payment refusals are tied to listed grounds like fraud suspicion and legal obligations, and Monzo says it will notify you of blocks
- Deposits are protected by the FSCS, so closure does not put eligible money at risk
- No internal appeal process for account closure is described in the document
Evidence from the document
Up until 28 April 2026 we can close your account by giving you at least 2 months' notice, after that we'll give you at least 90 days' notice.
We may close your account immediately or stop you using your card and/or app if we believe you've:
You can cancel your account within the first 14 days of opening it, or close it at any other time.
Your eligible deposits in Monzo are protected by The Financial Services Compensation Scheme (FSCS).
Recommendations
- Keep your contact details current, notices about your account arrive through the app, email, phone or mail
- Download your bank statements periodically so you keep records if the account ever closes
- If you disagree with a closure or block, complain to Monzo first, then escalate to the Financial Ombudsman Service for free
Data Privacy
Data collection, usage, and protection
The terms bundle data consent into acceptance: by agreeing to the terms you agree to Monzo using your data for service provision, fraud prevention sharing, and personalisation, with the detail delegated to a separate privacy notice not included here. Positives are that cashback partner sharing only happens if you opt in and cookie choices are offered. The one-sided grant of permission to share your details with a sender's bank after mistaken or fraudulent payments, without telling you first, is broad but serves a legitimate recovery purpose under UK rules.
Key findings
- Accepting the terms doubles as consent to the data uses listed, with the full picture in a separate Data Privacy Notice
- Data is shared with third parties such as fraud prevention agencies
- Data is used for personalisation of the app experience, with no in-terms opt-out described
- Sharing with cashback partners happens only if you sign up to partner cashback
- Monzo can pass your details to a sender's bank to recover mistaken or fraudulent payments without prior notice to you
- Cookie preferences are user-selectable
Evidence from the document
By accepting these terms, you agree to us using your data in these ways.
To share your data with third parties, like fraud prevention agencies, to make Monzo safer
Recommendations
- Read the Customer Privacy Notice before relying on the account, the real data detail lives there, not in these terms
- Skip partner cashback sign-up if you do not want your data shared with cashback partners
- Use the cookie preference controls to limit non-essential cookies
- As a UK customer you retain UK GDPR rights such as access and erasure regardless of these terms
Payment & Subscriptions
Billing and subscription management
Fee transparency is strong: fees live in a referenced fee document, card spending abroad uses Mastercard's rate with no added markup, replacement card fees are stated exactly, and you see international payment charges before you confirm. Refund rights are solid, including the Direct Debit guarantee and refunds for overcharged pre-authorisations reported within 8 weeks. The main catches are Monzo's set-off right to take debts directly from your balance, Pots and savings, possible ATM withdrawal fees, and cashback that can be withdrawn at any time and is forfeited on account closure.
Key findings
- No foreign exchange markup on card spending, Mastercard's rate applies with no additional fees
- International app payments show the exchange rate and exact charges before you approve
- Monzo can take money you owe it from your current account, Pots and savings without asking
- Unarranged overdraft debt is due immediately, and bounced cheques can be reclaimed even if that overdraws you
- Cashback can be withdrawn at any time and unpaid cashback is lost if you close the account
- Replacement cards cost 5 pounds domestically and 30 pounds for international delivery, with free cases clearly listed
Evidence from the document
Spending with your Monzo card is free anywhere around the world, and should work anywhere that accepts Mastercard.
We can take money you owe us from your Monzo Current Account, Pots or savings balance
We may charge you for withdrawing money from an ATM.
We can withdraw individual cashback offers or cashback itself at any time.
Recommendations
- Remember money in Pots does not count toward your available balance, payments can bounce even when Pots hold money
- Check the fee information document and the Fee Criteria to see which charges apply to you
- Cancel standing orders by 23:59 UTC the day before, and Direct Debits 2 working days before they are due
- Claim any missing cashback within 60 days, and collect owed cashback before closing your account
Limitation of Liability
Risk allocation and legal protection
Monzo affirmatively accepts responsibility for foreseeable loss it causes, promises refunds for unauthorised payments, post-freeze card use, missing strong customer authentication, its own payment mistakes, and eligible Authorised Push Payment fraud. The terms state plainly that your statutory consumer rights are untouched and that liability is never excluded where the law forbids it. Exclusions are limited to business losses, which fits a personal-use account, and events beyond Monzo's reasonable control, and you can lose refund rights if you are fraudulent, grossly negligent with security details, or report unauthorised transactions later than 13 months.
Key findings
- Monzo accepts liability for foreseeable loss and damage it causes, including breach of contract and lack of reasonable care
- Refunds promised for unauthorised payments, post-freeze transactions, and missing strong customer authentication
- APP fraud victims are reimbursed under the Payment Systems Regulator's rules
- Consumer statutory rights are expressly preserved
- Business and profit losses are excluded, consistent with the personal-use-only account
- You must report unauthorised transactions within 13 months of the money leaving your account
- Force majeure style exclusions cover third-party outages, industrial action and data-processing failures
Evidence from the document
We're responsible to you for any foreseeable loss and damage which we cause.
None of these terms affect your legal rights as a consumer.
we're not responsible to you for any loss of profit, loss of business, business interruption, or loss of business opportunity.
it was taken after you froze your card in the app, unless you acted fraudulently
someone makes a payment without your permission.
Recommendations
- Freeze your card in the app immediately if it is lost or you see suspicious transactions, refund rights hinge on it
- Report any wrong transaction well within the 13 month window, ideally at once
- Never share your PIN or security details, gross negligence with them can void your refund rights
- Claim refunds for overcharged pre-authorised card payments, like car hire, within 8 weeks
Indemnification
Legal responsibility allocation
There is no indemnification clause: you are never asked to cover Monzo's legal costs, losses or third-party claims, which removes a major risk found in many consumer contracts. The nearest provision makes you responsible for the actions of a Trusted Third Party you appoint to manage your account, with Monzo disclaiming liability for their mistakes except where the law requires a refund. That is a narrow, opt-in responsibility rather than a general indemnity.
Key findings
- No clause requires you to indemnify Monzo or pay its legal costs
- You are responsible for instructions given by a Trusted Third Party you appoint
- Monzo disclaims liability for a TTP's mistakes except where the law, such as APP fraud rules, requires a refund
- You bear repayment of debts like unarranged overdrafts and bounced cheques, but that is repayment, not indemnity
Evidence from the document
We aren't liable for their mistakes or any misuse of your account,
Recommendations
- Only appoint a Trusted Third Party you fully trust, since their instructions count as yours
- Review and cancel TTP access in the app if your circumstances change
- Keep evidence of any disputed TTP activity, legal refund rights can still apply
Modification of Terms
How agreements can be changed
Monzo reserves broad change rights, including new charges and a catch-all for proportionate changes for any balanced and valid reason, and silence counts as acceptance. The offsetting protections are real: 2 months advance notice for changes to regulated products and payment services, 30 days for most others, reasons given for each change, a permanently available current version with 20 archived past versions, and a fee-free exit if you reject a change. Changes for new, unregulated, or legally required matters can take effect immediately, which is the weakest point.
Key findings
- 2 months notice for changes to existing regulated products and payment services, 30 days for most other changes
- Changes for new products, unregulated services, or legal requirements take effect immediately
- If you reject a change, Monzo closes your account fee-free and transfers your money out
- Continued silence is deemed acceptance of changes
- Monzo commits to telling you its reasons for each change
- Full version history is published, currently 20 past versions
- Monzo can transfer the contract to another company in its group without your consent
Evidence from the document
We can make favourable changes to the terms of this agreement, including the fees we charge, for any reason.
If you don't agree to these changes, you can let us know and we'll close your account fee-free.
If we don't hear from you before the changes come into effect, we'll assume you're happy and accept the changes we've made.
This agreement will always be available in the app and on our website.
Recommendations
- Read change notices when they arrive, doing nothing means you accept the new terms
- If a change harms you, use the fee-free exit before the change takes effect
- Compare the archived past versions if you want to see exactly what changed
Governing Law & Disputes
Jurisdiction and conflict resolution
English law and English courts govern, which matches where every customer must live, so there is no foreign-forum burden. There is no arbitration clause, no class action waiver, and no jury trial waiver. Beyond the courts, you get a free escalation path to the Financial Ombudsman Service and the Financial Conduct Authority, and the terms point you to the Competition and Markets Authority for your consumer rights.
Key findings
- English law and English courts, aligned with the UK-resident customer base
- No forced arbitration and no class action waiver
- Free access to the Financial Ombudsman Service if a complaint is not resolved
- Regulated by the FCA and PRA, adding supervisory recourse beyond the contract
- Complaint process starts informally through in-app contact
Evidence from the document
English law applies to this agreement and English courts will settle disputes.
If you have a complaint, please contact us and we'll do our best to fix the problem.
Recommendations
- Complain to Monzo first through the app, that is the required first step
- If unsatisfied, escalate to the Financial Ombudsman Service, it is free and its decisions bind the bank
- Keep records of all complaint communications and dates
Ex-TerCo provides automated analysis of legal documents for informational purposes. This is not legal advice. Terms can change at any time.