Monzo Investments: Fees
What’s this document for?
This document is about the fees you need to pay for Monzo’s investment services, and the investment products we make available to you.
Fees you’ll need to pay
You pay fees to both us and the fund manager that makes the funds you invest in. At the moment, the only funds we offer are funds managed by BlackRock.
We charge you fees for making investment accounts available to you, for arranging for you to buy and sell investments, and for the services we provide through the Monzo app. Our Investment Services Partner (Seccl) charges us for the custody, investment dealing (that is, buying and selling investments on your behalf) and (if relevant) the ISA services it provides you in relation to your investment account. We take that cost into account when we set the fees for our investment services.
BlackRock charges you fees for managing funds you’ve invested in. ‘Managing the fund’ means taking steps to try and make a return on the money you and other investors have invested in the fund, in line with the fund’s investment objective. You can see more information about each fund’s investment objective in the Key Investor Information Document. You can see this in the app for the funds you invest in.
What you’ll pay and when
Monzo fees
We charge a fee of 0.45% a year, or 0.35% if you’re a Monzo Plus or Monzo Premium customer, or if you subscribe to a plan that offers a lower fee on your investments accounts in the terms. We apply this percentage to the value of investments and cash in your investment account.
Fees build up daily, and you’ll pay them each month. We work out the fees you need to pay for each day, add them up over the course of the month, and then charge the fees due for that month. We round the fees down to the nearest £0.01, and collect them on or around the 10th of each month.
We take the fees automatically from your investment account each month - if there’s not enough cash in your account, we’ll sell just enough of your investments to generate cash to pay the fees. See more details in the terms and conditions.
BlackRock fees
BlackRock’s fees for managing the funds you invest in are shown in the table below.
BlackRock takes its fees out of the funds you invest in. This means you won’t see these fees come out of your account, but it’ll reduce the value of the funds you’re invested in instead. You’ll see the fees for each fund we offer in the app, and if you decide to invest in particular funds, we’ll give you a document setting out the fees you’ll pay on your investment before you make it.
| Fund | Fund name in the Monzo app | Fund Manager Fee |
|---|---|---|
| MyMap 8 Select ESG Fund | Adventurous | 0.14% |
| MyMap 5 Select ESG Fund | Balanced | 0.14% |
| MyMap 3 Select ESG Fund | Careful | 0.14% |
| iShares Core S&P 500 Fund | American companies | 0.07% |
| iShares Core FTSE 100 Fund | British companies | 0.07% |
| iShares MSCI Emerging Markets Fund | Emerging markets | 0.18% |
| iShares Core MSCI Europe Fund | European companies | 0.12% |
| iShares Core MSCI World Fund | Global companies | 0.20% |
| iShares NASDAQ 100 UCITS ETF | Tech focused | 0.30% |
| iShares Healthcare Innovation | Healthcare innovation | 0.40% |
| iShares Metaverse | Metaverse | 0.50% |
| iShares Global Clean Energy | Clean energy | 0.65% |
| iShares Blockchain Technology | Blockchain creators | 0.50% |
| iShares Automation and Robotics | Automation and robotics | 0.40% |
Monzo and BlackRock
We’ve partnered with BlackRock to provide the investment products available to you.
BlackRock will work with us on our investments offering, including financially, to help enhance in-app experience and features like educational content.
Based on the number of customers we expect to use Monzo Investments during this partnership, we estimate BlackRock's contribution will be approximately £2.70 per year for each customer.
Cash Interest
Generally speaking, it’s not intended that you’ll hold cash for any length of time in your investment account. However there may be circumstances where you do (for example it takes a little time for your investment instructions to complete). Seccl may earn interest on cash balances held in your investment account(s) and if it does, it will pay these to charity. If in the future, Seccl decide to pay interest to you, we’ll let you know (along with details of the interest rate).
Any interest Seccl pay would be accrued daily and paid monthly in the month immediately following that for which it was accrued. Interest would be calculated on cleared cash balances only.
Monzo Bank Limited, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 730427). Registered in England. Registered No. 9446231. Registered Office: Broadwalk House, 5 Appold St, London, EC2A 2AG.
Seccl Custody Limited deals in investments, is the custodian of assets held on the platform and is the ISA manager. It is authorised and regulated by the Financial Conduct Authority, Registration No. 793200 and registered in England and Wales No. 10430958. Registered office 20 Manvers Street, Bath BA1 1JW.
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