Quick Answer
Monzo says it is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority, and eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per firm. That covers the bank failing, not every loss. Scams, account restrictions and balances above the limit are separate risks.
Key Takeaways
- The FSCS limit is now £120,000, not £85,000. It rose on 1 December 2025, so older articles and searches that mention 85k are out of date.
- Protection is per person and per banking licence, not per app or pot. Everything you hold with one firm counts towards the same limit.
- Fraud and account closure follow different rules from deposit protection. Monzo’s call status check helps with impersonation scams, and it can close accounts, sometimes without explaining why.
Is Monzo safe? Start with who regulates it
“Is Monzo safe” is really two questions: is the bank properly authorised, and what happens to your money if something goes wrong? This guide covers both from official and company sources. It gives no personal advice and is not a recommendation for or against any bank.
Monzo says that Monzo Bank Limited is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA), and gives its Financial Services Register number as 730427. The FSCS says a provider must be authorised by the PRA for its deposits to be covered, and that you can check this on the Financial Services Register. We could not open the register itself, so check the entry yourself.
What the FCA fine tells us
In July 2025 the FCA fined Monzo £21,091,300 for failings in its financial crime controls. The regulator found inadequate systems for customer onboarding, risk assessment and transaction monitoring between October 2018 and August 2020. It also found Monzo breached a requirement not to open accounts for high-risk customers, signing up more than 34,000 of them between August 2020 and June 2022 (reported by Financial Reporter). The report does not say customers’ money was affected. Monzo says it has completed a financial crime change programme.
That is not a verdict on whether your deposits are protected. It does show why the account restrictions described later exist.
FSCS protection: is money at Monzo protected?
The FSCS compensates eligible customers automatically if an authorised bank fails. Since 1 December 2025 the limit is £120,000 per eligible person, per authorised firm, up from £85,000. The FSCS says it expects to pay compensation within seven working days of a bank failing.
Monzo’s explanation adds a few details:
- The limit counts everything you hold with one firm, including current account and savings pot balances.
- Joint accounts: each holder has their own allowance, and only your share of a joint balance counts towards yours.
- E-money accounts such as PayPal are not covered, and nor are investment losses or cryptocurrency.
Holding over 85k in a Monzo account: risk and the old limit
People still search for “holding over 85k in monzo account risk”, but that figure is the old limit. The £85,000 limit applied from 1 January 2017 to 30 November 2025. Balances above £120,000 with one firm are not covered by the FSCS above that amount, apart from temporary high balances.
Is Monzo safe for house deposit savings?
The FSCS protects certain temporary high balances up to £1.4 million for six months from when the amount was first deposited, for example after selling a home or receiving an inheritance. A deposit built up gradually from your own savings does not obviously fall under that wording, which is our reading, not FSCS advice. If your balance will exceed £120,000, check the FSCS rules or ask the FSCS before relying on it.
Is Monzo safe to use as main bank account?
That depends on your own circumstances, and we give no personal advice. The checkable facts are: it is a PRA-authorised, FCA-regulated bank, deposits are protected up to £120,000 per person, and scam and closure rules (below) apply as with other banks. Compare these points with your own needs.
Capital and profitability
You may see searches for “monzo credit rating and profitability” and “monzo bank tier 1 capital ratio”. Here is what we found.
- Profitability: Monzo’s results for the year to 31 March 2026 were published on 19 May 2026. Payment Expert reported revenue of £1.7bn, an adjusted profit before tax of £172.6m, up from £143.9m, and 15.2 million customers. It describes this as the bank’s third straight year in profit.
- Capital: Monzo’s Pillar 3 disclosures for Monzo Bank Limited show a Common Equity Tier 1 ratio of 27.28%, a Tier 1 ratio of 27.28% and a total capital ratio of 27.70% as at 31 March 2026. A capital ratio compares the capital a bank holds with its risk-weighted assets, so a higher figure means a larger buffer. This is general background and the ratios do not guarantee safety.
- Credit rating: We did not find a rating from a major agency, so we do not state one.
Fraud and scams
Monzo bank impersonation scam: how it works
In an impersonation scam a caller or message claims to be from Monzo, then pressures you to move money or share details. Monzo says it will never ask you to:
- move money to a holding, safe or any other account
- withdraw money, or make a payment
- accept a notification on your phone
- ignore a fraud or payment warning
- share your PIN or personal information
- take out a loan
How to check Monzo call status in app
To use the check, follow Monzo’s steps:
- Open the app and tap the Home icon.
- Tap your profile at the top left.
- Tap Settings, then Privacy & security.
- Look at the banner at the top of the screen. It tells you whether Monzo is genuinely on a call with you.
If the banner says Monzo is not talking to you, Monzo says to hang up straight away, and to be especially cautious if the caller blames a technical fault. If your phone has no internet connection, the banner says so.
How to spot a Monzo phishing text
Which? reported in June 2023 on fake texts impersonating Monzo. The message said customers needed to upload photo ID and a selfie video through a link, and the link led to a lookalike site that asked for login details, a card PIN and a selfie video. The site was taken down quickly. The red flags were an unexpected text demanding urgent action, a request for ID or a PIN, and a recently registered lookalike web address.
- Do not click links in unexpected texts. Open the app or type the address yourself.
- Never enter your card PIN into a website.
- Forward scam texts to 7726 (Which?), and report lost money to your bank and Action Fraud.
Monzo authorized push payment app fraud: what is reimbursed
Authorised push payment (APP) fraud happens when you are tricked into sending a payment yourself. Searches often spell it “monzo authorized push payment app fraud”. Under the Payment Systems Regulator’s policy, reimbursement of Faster Payments APP scams started on 7 October 2024, with a maximum of £85,000 per claim, and only for scams within scope. The PSR page did not set out the eligibility rules, and the cap was due to be reviewed, so check the current position with Monzo or the PSR. Reimbursement is separate from FSCS protection.
Security features
Monzo’s security page describes the following. These are the company’s own descriptions, not independent tests.
Monzo biometric login security features
Monzo says you can use biometrics every time you open the app on your phone. The page does not name a specific method such as Face ID.
Monzo 3D Secure online shopping
Online payments are approved through a two-step check called 3D Secure, according to the page. Instant notifications also show the shop, location and amount of card payments.
Monzo card freezing feature in app
The page says “you can freeze and unfreeze your accounts”, and that you can log out remotely if a phone is lost or stolen. It did not say whether individual cards can be frozen, so check the app for the card-level option before relying on it.
Monzo disposable virtual cards safety
With a Monzo plan you can create virtual cards, and the page says each card number changes with each use. Plans start at £3 a month, so this is not a free feature. We have not tested it, so treat the claim as Monzo’s description.
How does Monzo verify identity?
Monzo’s security page says the application includes the video selfie you take when you apply, which helps stop someone impersonating you when you contact Monzo.
Limits to know: account closures and freezes
Monzo account closure rules
Monzo account closure rules are set out in its terms. A 2019 Monzo blog post (accurate when published, so check current terms) says Monzo can close an account by giving at least two months’ notice, and can act immediately in certain cases, such as suspected breaches of the law or terms, false information or abuse of staff.
Why did Monzo freeze my account?
The same post lists reasons Monzo may block an account: legal and regulatory duties, unusual activity, suspected criminal use, a police request, or a suspected account takeover. Blocked accounts get reviewed by a person. Monzo says it often cannot explain the reason, because doing so could give fraudsters clues, and some rules prohibit disclosure.
Monzo randomly closing accounts: what the Ombudsman says
We found no figures on how often Monzo closes accounts. In one Financial Ombudsman Service decision (DRN-5150189), a customer said Monzo closed his account with no warning or reason. The ombudsman noted that Monzo’s terms allow it to close an account without giving a reason, that it has no obligation to divulge its reasons, and did not uphold the complaint about the closure, though it considered £75 fair for service failings. This is one case, not a rule for every complaint.
Alternatives for large balances
If you hold more than £120,000 in total, the FSCS limit is per person, per authorised firm. The FSCS says banks in the same banking group that share a licence are treated as one bank, so the limit covers your total across those accounts. Monzo’s example is HSBC and First Direct, which share one allowance. Check which brands share a licence on the Financial Services Register before you spread money around. This is information, not advice.
Frequently Asked Questions
Is Monzo safe?
Monzo says it is PRA-authorised and FCA-regulated, and eligible deposits are protected by the FSCS up to £120,000 per person, per firm. That covers bank failure, not scams or account closures. Check its Financial Services Register entry yourself.
Is money held at Monzo protected?
Eligible deposits are protected up to £120,000 per person, per authorised firm, since 1 December 2025. The limit counts all balances you hold with the same firm, including savings pots, and your share of joint accounts.
Is the FSCS limit still £85,000?
No. The £85,000 limit applied until 30 November 2025. From 1 December 2025 the FSCS limit for deposits is £120,000 per eligible person, per authorised firm. Any older article quoting 85k is out of date.
Why would Monzo freeze or close my account?
Monzo’s 2019 blog lists legal duties, unusual activity, suspected criminal use, police requests and possible account takeover. It can close an account with two months’ notice, or immediately in some cases, and may not explain why.
How do I check a call is really from Monzo?
Open the app, go to Settings then Privacy & security, and read the banner at the top. If it says Monzo is not talking to you, hang up. Monzo says it will never ask you to move money to a safe account.
Does Monzo reimburse scams?
Under the PSR’s rules, reimbursement of Faster Payments APP scams started on 7 October 2024, with a cap of £85,000 per claim for scams in scope. Whether yours qualifies depends on the circumstances, so contact Monzo quickly and check the current rules.
