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Monzo Plus: Everything you need to know about Monzo’s new product

Monzo Bank has reinstated its premium ‘Monzo Plus’ membership with a month-on-month fee of £5. The account provides new features including up to 1% interest of £2,000 and extra fee-free withdrawals overseas – but is it really worthy?

Monzo initially introduced an account named Monzo Plus in April 2019 before disposing of it in September of exactly the same year, due to weak feedback received from clients.

Now the account has been revived with new advantages.

What can Monzo Plus provide and does it pay off?

The new Monzo Plus charges £5/month, and provides several benefits that the Monzo normal account does not offer free of charge. Most of them, however, are freely available elsewhere.

What features can we expect?

– 1% AER interest on up to £2,000. For your comparability, NS&I’s largest savings account, which is easy to access at the moment, is paying 1.16% AER over £500 up to £1 million. The no-fee bank accounts pay up to 2.02% on £1,000.

– Increased no-fee withdrawal limits at ATMs abroad. You can withdraw £400 from ATMs each month while you are overseas, by doubling the regular Monzo allowance to £200/mth.

This is not however the case with our Starling debit card, offering unlimited fees and withdrawals all over the world as part of your free account.

– The capability to view and transfer money into a variety of bank and credit card accounts within the Monzo App. This is an Open Bank resource, and you can add Barclays, HSBC, Lloyds and national accounts, among others.

Nevertheless, several other banks now also offer the ability to view bank account and credit card details from other providers in their applications, even though only a few have allowed you to move money between accounts so far.

Source: Forbes

– Monthly credit score updates. This will give you your TransUnion credit score. You can, however, get your TransUnion credit score and credit report for free from elsewhere.

Other benefits of Monzo Plus include:

– Up to five virtual cards. Each card has its unique features. These are offered with other fintechs, but they only tend to be offered at cost, or in other accounts that have a regular monthly fee.

– More budget resources, including customized categories. Monzo claims this was the first characteristic his users requested. Many applications now classify their spending into categories automatically (and allow you to recategorize spending), but not many have the capability to add their very own custom category.

– Offers and discounts. Starting offers available will include 15% off orders for Patch plants over £50, and 25% off FiiT home workout subscription. Some of these are currently available online or from other businesses.

– A holographic blue card.

In a Few Words

It is very difficult to see exactly why you would be paying £60 a year for Monzo Plus as it stands. You can get extra interest with the easy access top account, obtain a better deal on overseas withdrawals and you can already get your TransUnion credit score and report for free.

In most cases, if you are not eager for virtual cards and custom budget classes, it’s not really worth purchasing Monzo Plus yet, unless you’re a Monzo Plus enthusiast looking forward to a holographic card. 

Source: Money saving expert

Photo: Campaign