Monzo or Revolut

[adamph]

We are currently banking with HSBC and have done so for years. We have never had any issues, but we also don't really get anything in return from them. There is no interest on cash in the business account, no rewards, etc. Also, we can't use it for any foreign spending or transfers as the fees are so high.

We use Wise for international transfers and also have a Wise USD account.

I'm looking for an account that can give us more back in terms of interest on cash. With better control over our cards when it comes to spending in foreign currencies and also merchant services, Revolut has much cheaper card processing rates than Stripe, and this interests me.

However, I'm not sure about the stability and safety of our money in Revolut, as I've heard they don't provide as much protection. Monzo, I'm not sure about it.

Looking for advice from people with more knowledge of banking. Should I leave HSBC to a new bank that offers more benefits or stick with HSBC and have fewer benefits but the stability and security of a big bank?

 

[gpietersz]

I now use Wise as my main business current account. Works fine. They do have interest paying accounts too.

The FSCS has a useful checker: https://www.fscs.org.uk/check/check-your-money-is-protected/ It ias Monzo listed but not Revolut - I think Revolut recently got a banking license so that may change.

How much money are you talking about? Does it need to be immediately available? There are more options if you are keeping a significant amount of money in the business. HSBC must have business savings accounts, or you could just open an interest paying account elsewhere.

 

[adamph]

I now use Wise as my main business current account. Works fine. They do have interest paying accounts too.

The FSCS has a useful checker: https://www.fscs.org.uk/check/check-your-money-is-protected/ It ias Monzo listed but not Revolut - I think Revolut recently got a banking license so that may change.

How much money are you talking about? Does it need to be immediately available? There are more options if you are keeping a significant amount of money in the business. HSBC must have business savings accounts, or you could just open an interest paying account elsewhere.

Thanks for this. It is interesting that Wise is also not FSCS-protected. Revolut is now, apparently.

 

[UK Contractor Accountant]

Wise doesn't play around with customers money - it's held in liquid deposits with top tier Banks.

 

[gpietersz]

Wise doesn't play around with customers money - it's held in liquid deposits with top tier Banks.

Yes, regulations require that customers money is separated and ringfenced , but that still does not provide the same level of solid guarantee FSCS does. Its probably not a great place for large deposits.

Thanks for this. It is interesting that Wise is also not FSCS-protected. Revolut is now, apparently.

Revolut NewCo UK Ltd is, Revolut Ltd is not. It looks from the Revolut website that Revolt Ltd is the one that you would open an account with.

 

[Daybooks]

If you are happy to give up the functionality of bulk payments and scheduling and accept limited, if any, desktop services then choose either.

 

[RobPickering]

We are currently banking with HSBC and have done so for years. We have never had any issues, but we also don't really get anything in return from them. There is no interest on cash in the business account, no rewards, etc. Also, we can't use it for any foreign spending or transfers as the fees are so high.

We use Wise for international transfers and also have a Wise USD account.

I'm looking for an account that can give us more back in terms of interest on cash. With better control over our cards when it comes to spending in foreign currencies and also merchant services, Revolut has much cheaper card processing rates than Stripe, and this interests me.

However, I'm not sure about the stability and safety of our money in Revolut, as I've heard they don't provide as much protection. Monzo, I'm not sure about it.

Looking for advice from people with more knowledge of banking. Should I leave HSBC to a new bank that offers more benefits or stick with HSBC and have fewer benefits but the stability and security of a big bank?

I'd recommend you also look at Allica Bank. They're a relatively new one but aiming to address the issues that many businesses have, eg good rate of return on positive balances and the ability to speak to someone who knows their stuff. I haven't yet changed but intend to do so as I'm with Starling but disappointed in the lack of interest and even a secondary account. What Starling Bank does is great, never let me down and everything is very simple on the App... but I want more.
(Note: I have no affiliation with any Bank)

 

[adamph]

I'd recommend you also look at Allica Bank. They're a relatively new one but aiming to address the issues that many businesses have, eg good rate of return on positive balances and the ability to speak to someone who knows their stuff. I haven't yet changed but intend to do so as I'm with Starling but disappointed in the lack of interest and even a secondary account. What Starling Bank does is great, never let me down and everything is very simple on the App... but I want more.
(Note: I have no affiliation with any Bank)

Thanks for the recommendation, Rob. That looks like a perfect solution.

 

[enry06]

Been with Monzo for a little while now with no issues.

They are partnered with Wise for international transfers.

It shows in the app when heading on the "payment" section.

https://imgur.com/a/rDpJlUI

 

[adamph]

Thanks for all the comments on this. Having looked at just about every option and read reviews, I think I'll stick with HSBC. I've never had an issue with HSBC, and some of the bad reviews on these new banks are concerning. I'm sure HSBC business also has plenty of bad reviews, but my experience is good, and I trust them with my money.

I have started an interest Wise balance which I will move money into so we aren't just leaving cash in our HSBC account and gaining no interest, which as been the case until now.