Monzo vs Chase UK: cashback or better budgeting?

Monzo and Chase UK are both free, app-only bank accounts with no monthly fees — and they're both genuinely good. But they're built around different ideas of what a bank account should do.

Chase leads with cashback and savings rates. Monzo leads with budgeting tools and flexibility. This comparison breaks down where each one actually wins when you look past the headline features and into the numbers.

Both are FSCS-protected up to £85,000, FCA-regulated, and free to open. The choice comes down to how you use your bank account day-to-day.

Quick comparison

The cashback maths

Chase's 1% cashback is the headline feature — and it's worth doing the actual maths on, because the real value is lower than it sounds.

Year one (new customer): 1% cashback on debit card spending for groceries, everyday transport, fuel and EV charging points. Capped at £15/month (i.e. cashback on the first £1,500 of qualifying spending). Over a full year, the maximum cashback is £180.

Year two onwards: to keep earning cashback, you must deposit at least £1,500/month into your Chase account. The categories and cap remain the same.

What the cap actually means: if you spend £800/month on groceries and fuel (reasonable for a UK household), your cashback is £8/month — £96/year. You only hit the £180 maximum if you're spending £1,500/month specifically on the qualifying categories.

For a realistic household, Chase cashback is worth roughly £80–£120/year. That's genuine free money, but it's not the transformational number the marketing implies.

Monzo's free account has no cashback. On the paid tiers, Billsback offers a monthly lottery on household bills (see our Billsback review for the expected-value maths). For most people, Chase's guaranteed cashback beats Billsback's odds.

Verdict: Chase wins on cashback. The real value is £80–£120/year for most households — meaningful, but not the full £180 headline.

Savings rates

This is where Chase has a strong but time-limited advantage.

Chase: new customers who open a Chase Saver within 31 days of joining get 4.5% AER for 12 months (a 2.25% fixed bonus on top of the 2.25% variable base rate). After the bonus expires, the rate drops to 2.25% AER. Chase also pays 5% AER on the round-up account — a clever feature that earns surprisingly good interest on spare change.

Monzo: Instant Access Savings Pots pay 2.75% AER on the free account (3.25% on paid plans). No introductory bonus, but no expiry either. Monzo doesn't pay interest on round-ups.

The comparison over time:

On a £5,000 savings balance:

• Chase year 1: ~£225 interest
• Monzo year 1: ~£137 interest
• Chase year 2: ~£112 interest
• Monzo year 2: ~£137 interest

Chase wins convincingly in year one. From year two, Monzo's ongoing rate is slightly higher. If you're willing to move money between accounts when rates change, the optimal strategy is to use Chase's introductory rate then reassess — but most people won't bother.

Verdict: Chase wins for the first year. Monzo wins on simplicity and ongoing rate. Both are competitive for free accounts.

Everyday banking and app experience

Both apps are well-designed, but they serve different philosophies.

Monzo is built around the idea that your bank account should actively help you manage money. Pots let you ring-fence cash for bills, savings, holidays and spending money. Salary Sort automatically distributes your pay the moment it arrives. Spending targets warn you when you're overspending in a category. Bill splitting with friends is built in. The app feels like a budgeting tool that happens to be a bank.

Chase is built around simplicity. The app is clean, fast and focused on the basics: balance, transactions, cashback earned, savings. It does what it does well, but it doesn't try to shape your financial behaviour. There's no pot system, no salary sorting, no spending targets. If you want to organise your money, you're on your own.

Round-ups are available in both, but Chase's earn 5% AER — significantly better than Monzo's non-interest-bearing round-up pot.

For people who want their bank to be a passive background service — deposit money, spend money, earn cashback — Chase is perfectly adequate and arguably less cluttered. For people who actively budget and want their bank to enforce structure, Monzo is in a different league.

Verdict: Monzo wins for active budgeters. Chase wins for people who want simplicity and don't budget through their bank.

Travel and spending abroad

Both Monzo and Chase offer no foreign transaction fees on card payments abroad, using the Mastercard exchange rate. This puts them ahead of almost every traditional UK bank.

The difference is in ATM withdrawals:

• Monzo: EEA: unlimited free. Non-EEA: £200/month free, then 3% fee applies
• Chase: free ATM withdrawals abroad with no cap

For card-only travellers (most people in 2026), there's no practical difference. For anyone who regularly withdraws cash abroad, Chase is the better choice — no limits, no fees.

Verdict: Chase has a slight edge on ATM withdrawals. Card spending is identical. Both are excellent travel accounts.

Overdrafts and borrowing

This is where the two banks diverge sharply.

Monzo offers an arranged overdraft at 39.9% EAR and Monzo Flex — a buy-now-pay-later product with 3-month interest-free instalments, Section 75 protection, and the option of longer plans at 29% APR. (For a deeper look, see our Monzo Flex review.)

Chase does not offer any overdraft or credit product. If you don't have enough money in your account, your payment is declined. There's no buffer, no arranged overdraft, no BNPL option.

For some people, this is a feature — you literally can't overspend. For others, it's a limitation. If you ever need short-term borrowing flexibility, even occasionally, Chase can't help.

Verdict: Monzo wins by default — Chase doesn't offer borrowing at all. Whether that matters depends on whether you ever need it.

Joint accounts

Monzo offers joint accounts with shared pots, bill splitting and all the budgeting tools available on personal accounts. Both partners get full visibility and control through their own app.

Chase does not offer joint accounts.

If you're managing shared finances with a partner, this is a straightforward Monzo win. There's no workaround on Chase for shared budgeting.

Verdict: Monzo wins. Chase doesn't offer this.

Customer support

Both banks offer in-app chat only — no phone line, no branches, no email.

Monzo's support is generally responsive for simple queries (card replacements, transaction disputes) but can be slow for complex issues. Chase's support is backed by J.P. Morgan's infrastructure and has a reputation for slightly faster resolution times, though experiences vary.

Neither offers the branch-based support you'd get from a traditional bank like Nationwide or Barclays. If in-person support matters to you, neither Monzo nor Chase is the right primary account.

Verdict: Roughly equal. Neither is outstanding; neither is bad.

Who should choose Chase?

• You want guaranteed cashback on groceries, transport and fuel without paying a monthly fee
• You want a high savings rate (4.5% for year one) with minimal effort
• You prefer a simple, clean banking app that doesn't try to manage your money for you
• You travel and want completely free ATM withdrawals abroad
• You don't need an overdraft, credit product or joint account

Who should choose Monzo?

• You want budgeting tools that actively help you manage spending — pots, salary sorting, spending targets
• You need a joint account for shared finances
• You want access to Monzo Flex for interest-free instalments on larger purchases
• You need an overdraft as a safety net
• You value having all your financial products (current account, savings, credit, business) in one app

Can you use both?

Yes — and it's a strong combination. A common setup:

• Chase as the spending card — earn 1% cashback on groceries and fuel, use abroad for free ATM withdrawals
• Monzo as the hub — receive salary, sort into pots, manage bills and Direct Debits, use Flex for planned purchases

You lose some of the simplicity of a single account, but you capture Chase's cashback and savings rates alongside Monzo's budgeting and flexibility. A standing order from Monzo to Chase (or vice versa) keeps money flowing between the two.

Monzo vs Chase FAQs

Is Chase or Monzo better for cashback?

Chase is better. It offers 1% cashback on groceries, transport and fuel (capped at £15/month) at no cost. Monzo's free account has no cashback; the paid tiers offer Billsback, which is a lottery rather than guaranteed cashback.

Does Chase have an overdraft?

No. Chase does not offer overdrafts or any credit product. Payments are declined if your balance is insufficient. Monzo offers an arranged overdraft at 39.9% EAR.

Which has better savings rates?

Chase wins for the first 12 months (4.5% AER on the boosted saver). After that, Monzo's ongoing 2.75% AER beats Chase's 2.25%. Chase's 5% round-up account is a unique feature that earns well on small amounts.

Do both work fee-free abroad?

Yes. Both use the Mastercard exchange rate with no foreign transaction fees on card payments. Chase also offers unlimited free ATM withdrawals abroad; Monzo offers unlimited free ATM withdrawals in the EEA, and £200/month free outside the EEA (then 3%).

Does Chase have joint accounts?

No. Chase currently only offers individual accounts. Monzo offers joint accounts with full budgeting features.

Which bank has the better app?

Both apps are well-rated. Chase is simpler and more focused; Monzo is more feature-rich with deeper budgeting tools. Which is "better" depends on whether you want your bank to actively manage your money (Monzo) or stay out of the way (Chase).

Can I switch from Chase to Monzo or vice versa?

You can open either account in minutes without switching. Neither requires you to close your existing bank. Both support the Current Account Switch Service (CASS) if you want to move Direct Debits, but it's not required.

Is there a Chase referral bonus?

Chase does not currently operate a public referral programme. Monzo offers a mystery reward of £20, £50 or £100 when you join via a referral link and make a card payment within 30 days.

The bottom line

Chase is the better account for earning money passively — cashback on spending, high introductory savings rates, and round-up interest. It's a "set and forget" account that rewards you for doing nothing differently.

Monzo is the better account for managing money actively — budgeting, organising, borrowing, and shared finances. It's a financial control centre that happens to be a bank.

For most people, the honest answer is the same as with Nationwide: use both. Chase earns you money; Monzo helps you manage it. They complement each other well and both are free.

If you're opening a Monzo account, using a referral link gets you a mystery reward of £20, £50 or £100 when you make your first card payment.