Starling vs Monzo: which UK bank is better with foreign currencies?

At a glance

Spending and cash abroad

Card payments abroad cost nothing extra at either bank: both pass on the Mastercard exchange rate without adding their own fee. The difference is cash.

Starling does not charge for cash withdrawals in the UK or abroad, though the ATM owner may. Its only travel limit is a daily cap of £300 in the local currency.

Monzo’s rules depend on your plan. On the free plan, UK and EEA withdrawals are free if Monzo is your main bank (for example, at least £500 paid in over a rolling 35 days plus an active Direct Debit). If not, you get £400 free per rolling 30 days in the UK and EEA, then 3%. Outside the EEA the free plan and Extra get £200 per rolling 30 days, and Perks and Max get £600, with 3% charged above that.

Worked example: £500 of cash over a month in Thailand

Local ATM operators can add their own fee at both banks. Always choose to be charged in the local currency.

Worked example: €600 by card plus €300 in cash in Spain

Starling: £0 in Starling fees. Monzo free plan: £0 for the card payments; the €300 (roughly £250) withdrawal is free if Monzo is your main bank, and also free otherwise because it stays under the £400 UK/EEA allowance.

Holding euros and getting paid from abroad

Starling’s euro account is the main reason multi-currency users pick it. It comes with its own IBAN, has no monthly fee and sits next to your sterling account (you need the GBP account to open it). Converting between pounds and euros costs 0.4% on top of the current exchange rate, and Starling says a further margin applies at weekends and on bank holidays.

Monzo UK accounts hold pounds only. Money sent to you in another currency is converted into pounds, and Monzo charges a 1% conversion fee.

Worked example: a client pays you €2,000

Starling: the euros land in your euro account at no charge. If you convert all of it to pounds, the 0.4% fee is €8. If you keep it to spend in euros later, you pay nothing.

Monzo: the payment is converted into pounds on arrival, with a 1% fee of €20.

Sending money abroad

Starling runs its own international payments service through local partner networks in 34 countries and 17 currencies. You pay a 0.4% conversion fee plus a delivery fee: from £0.30 to £0.90 on the local networks, or a flat £5.50 by SWIFT.

Monzo also uses its own service for more than 40 currencies. Its fees change on 1 November 2026: from that date it charges a fixed fee that Monzo says is under £0.80 for most currencies and up to £11 for others. Monzo’s fee document lists the fixed fee; the exchange rate is shown in the app before you send, so compare it with the mid-market rate.

Worked example: sending £1,000 to a euro bank account

Starling: the 0.4% conversion fee is £4.00, plus a delivery fee from £0.30 on a local network, so from about £4.30 in total (£9.50 if the payment has to go by SWIFT).

Monzo (from 1 November): a fixed fee under £0.80 for most currencies, with the rate shown in the app.

For reference, Wise charged £3.81 for the same transfer paid by bank transfer on our check date. If you send abroad often, check the rate each bank shows, not just the fee.

Cash deposits, plans and everyday extras

If you pay in cash, Starling lets you deposit up to £1,000 a calendar year free at the Post Office, then charges 0.7% on the amount above £1,000. Monzo charges £1 per cash deposit at PayPoint or the Post Office on the free plan and Extra; Perks and Max include three free deposits a month.

Monzo’s paid plans bundle extras: Extra (£3) adds features on top of the free account, Perks (£9) raises the outside-EEA cash allowance to £600 and adds free cash deposits, and Max (from £19, three-month minimum, ages 18 to 69) adds more on top. Starling has no paid personal tiers, so what you see is what everyone gets.

Card replacement at Starling costs £5, or £10 if it is lost or stolen abroad.

Availability and protection

Starling Bank Limited (FRN 730166) and Monzo Bank Limited (FRN 730427) are both authorised by the Prudential Regulation Authority and regulated by the FCA and PRA. Eligible deposits are covered by the FSCS up to £120,000 per person at each bank.

Starling personal accounts are for UK residents aged 16 and over. Monzo’s UK bank is for UK residents too, but Monzo Bank Europe DAC now serves customers in Ireland and Spain, with deposits covered up to €100,000. Monzo closed all its US accounts on 8 June 2026.

Does a Monzo paid plan beat free Starling?

Only for heavy cash users, if you judge on travel fees alone. Monzo Perks (£9 a month) raises the free cash allowance outside the EEA from £200 to £600. The most it can save in a month is 3% of £400, which is £12. You break even at about £500 of cash a month outside Europe; below that the free plan plus the 3% fee costs less. Starling charges nothing for the same withdrawals, so for a cash-heavy trip a free Starling card in your wallet does the same job at no monthly cost.

Monzo’s paid plans make more sense if you value their non-travel extras, which we do not score here. Starling’s single free account keeps things simple: there is no plan to choose and no allowance to track.

Many people who travel often keep both apps. A common split is Monzo for everyday spending and budgeting, and Starling for cash abroad and for holding euros in its euro account. With either bank, choose to pay or withdraw in the local currency when a card terminal or ATM offers to convert into pounds for you; the no-fee promise from both banks applies to their own Mastercard conversion.

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• Starling Bank — full review
• Monzo — full review
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