Monzo will now set its own exchange rate when you send money abroad
Key Points
- Monzo will set the exchange rate on international bank transfers from 1 November 2026, and that rate will carry a margin.
- Monzo currently uses a third-party rate, usually the mid-market rate, with fees of up to £9 fixed plus 0% to 1.80% variable.
- The app will show the margin before a customer confirms a payment.
- Double Payday expands to Faster Payments salaries and student finance payments from 1 September 2026.
- Customers who reject the new terms can close their account fee-free if they tell Monzo by 18 October 2026.
Monzo will set the exchange rate on international bank transfers from 1 November, and that rate will include a margin.
The change forms part of a wider update to Monzo’s current account terms and conditions, which the bank emailed to customers on Tuesday (18 August).
Monzo said the rate will be live and will change regularly depending on the currencies involved, the payment amount, the time and date of the conversion and the wider foreign currency market. Customers will see the margin in the Monzo app when they enter their payment details.
Monzo currently routes international transfers through Wise and applies a third-party exchange rate that is usually the mid-market rate.
Its fee information document sets a fixed charge of no more than £9 and a variable charge of between 0% and 1.80%, depending on where the payment goes and in which currency.
The app shows the rate and the total charge before a customer confirms a transfer.
Other changes to Monzo’s terms
From 1 September 2026, salaries paid through the Faster Payments Service and student finance payments will qualify for Monzo’s Double Payday draw.
Customers need a salary payment of between £300 and £20,000 a month paid into a Monzo current account by Bacs or Faster Payments from a business, employer, payroll provider or a student finance company.
Monzo lists five qualifying student finance bodies: Student Loans Company, Student Finance England, Student Awards Agency Scotland, Student Finance Wales and Student Finance NI.
Customers who downgrade from Extra, Perks or Max to the free account will keep one connected bank account. Monzo will disconnect the rest for anyone who has linked several, and will offer a free reconnection of one.
Anyone on the free current account can also now add one virtual card in the app, delete and recreate it as they choose, and link it to a Pot to pay straight from that Pot.
Customers who do not accept the changes can tell Monzo and close their account fee-free. Monzo will treat silence as acceptance if it hears nothing by 18 October.
