UK-based challenger bank Monzo is launching three new paid plans for customers who wish to upgrade and receive additional features. Monzo stated that: "They're our take on packaged bank accounts, except they’re a bit more you."
Existing Monzo 'Plus' and 'Premium' account holders will be able to keep their accounts indefinitely, however, new customers will instead need to select from one of the new paid accounts 'Extra', 'Perks' or 'Max', should they wish to upgrade.
Commenting on the change, Monzo said: "Since we launched Plus and Premium all those years ago, our community of subscribers has doubled in size. We’re catering to a wider range of people now and we need our upgrade options to meet their wants and needs."
Depending on the plan you choose, you could benefit from a free weekly Greggs treat as well as discounted train travel with a free annual Railcard. That said, customers will no longer have access to a Monzo metal card, nor will they benefit from discounted lounge access at airports.
Below, we dig into what the new Monzo paid plans offer customers to help you decide whether they're right for you.
Extra, Perks, and Max: Three new paid accounts from Monzo
Monzo's new packaged bank accounts will each appeal to different customers depending on whether they're looking for a comprehensive budgeting app, the best savings rates, or worldwide travel insurance. Here's what's on offer in a nutshell:
- The 'Extra' account focuses primarily on providing additional budgeting features - Virtual cards, advanced roundups and credit insights are included, but Monzo's best savings rates and the lucrative new weekly Greggs sausage rolls are reserved for those on the Perks and Max plans
- The 'Perks' account offers perks such as weekly Greggs treats and discounted train travel via a railcard - Monzo's best savings rates, up to three fee-free cash deposits, and higher fee-free withdrawal limits when abroad are also included.
- The 'Max' account comes with travel perks that could appeal to frequent travellers - Customers get everything in the Extra and Perks plans, plus worldwide travel and phone insurance as well as breakdown cover in the UK and EU. Pay an extra £5 a month to extend your insurance benefits to your family.
The table below sums up some of the key features offered by the three bank accounts to help you compare them. We've also included the Free version to show you how it stacks up against the paid plans.
| Free | Extra | Perks | Max | |
| Monthly fee | FREE | £3 | £7 | From £17 (minimum 3 months) |
| Instant spending notifications |  |
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| Separate pots for saving money | |
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| Monthly spending summaries | |
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| Instant access savings rate | 4.10% AER (variable) | 4.10% AER (variable) | 4.60% AER (variable) | £4.60% AER (variable) |
| Fee-free cash withdrawals abroad | Up to £200 | Up to £200 | Up to £600 | Up to £600 |
| Investment fees | 0.59% | 0.59% | 0.49% | 0.49% |
| Credit insights |  |
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| Advanced roundups | |
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| Virtual cards | |
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| Auto spreadsheet with real-time transactions | |
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| 3 fee-free cash deposits | |
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| Annual railcard for discounted train journeys | |
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| Weekly Greggs treat | |
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| Worldwide travel insurance | |
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| Worldwide phone insurance | |
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| Breakdown cover in the UK and Europe | |
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Is the Monzo Extra bank account worth it?
The 'Extra' bank account subscription is £3 per month and is the cheapest of three new packaged bank accounts. It's also cheaper than the existing Monzo Plus (which costs £5 a month). But, unlike Monzo Plus, it doesn't come with features like Monzo's best instant access savings rate or £600 worth of free cash withdrawals abroad. Instead, you'll get the same instant access savings rate (4.10% AER variable) as the free account. You'll also get the same fee-free ATM withdrawal limit while abroad (£200 in 30 days).
In fact, all you're really getting with the 'Extra' subscription is additional budgeting features like virtual cards and categorising spending. These features could make the £3 monthly fee worth it to you, but competitors like Starling Bank* offer similar features for free through their bank accounts. So unless there's a specific Monzo Extra feature you love that you can't get elsewhere, it could be difficult to justify the cost.
Is the Monzo Perks bank account worth it?
The Monzo Perks bank account is now the cheapest option if you want to access features like Monzo's best instant access savings rate (4.60% AER variable) as well as the quirky new weekly Greggs treat perk. Cheaper investment fees, discounted train travel, and fee-free cash deposits could make the Perks bank account a good option for those looking for a decent-value packaged bank account.
To put things into context, most Railcards offer a third off the price of eligible train journeys but cost in the region of £30 a year - a fee which would be waived with a Perks account. With the extra features you get on top of this, a Perks account could be worth the additional cost for some.
Is the Monzo Max bank account worth it?
Monzo Max is the most comprehensive option and comes with all the benefits of Extra and Perks while also offering worldwide travel and phone insurance as well as breakdown cover in the UK and Europe. While it costs £17 per month, for an extra £5 per month, you can add your family to your travel, phone, and breakdown cover. This is more extensive coverage than what you would get with Monzo Premium (£15 a month) where you only get family travel insurance when you travel together.
As far as packaged bank accounts go, it's priced similarly to its competitors - NatWest, for instance, charges £20 a month for its Rewards Platinum account which also comes with a range of perks and travel insurance for the whole family.
Max, however, won't have the added benefits of airport lounge access and cashback on international transfers which are available on the Monzo Premium account. Perhaps features like its free breakdown cover, which isn't available on the Premium account, might make Max preferable to those who drive in the UK and EU frequently. Others may be swayed by the free Greggs sausage roll up for grabs every week, or the discounted train travel via a free railcard.
What happens if you're an existing customer with a Plus or Premium account?
If you already have a Monzo Plus or Monzo Premium account, you can keep your subscription with its current features at no additional cost for as long as you want. So if you're happy with your Plus or Premium account, you don't have to change anything.
However, if you cancel your Plus or Premium subscription, you won't be able to get it back. Likewise, if you move to Extra, Perks or Max, you will not be able to move back to Plus or Premium. That being said, some of the features on offer with the Perks and Max accounts, in particular, could tempt some customers to make the switch.
But before you do, make sure you understand which existing Monzo features won't carry over to the new accounts.
What existing paid account features won't carry over to the new accounts?
There are certain features that Plus and/or Premium account holders have now which won't carry over to the new Monzo packaged accounts. These include the following:
- No more metal cards - Although if you have one but want to switch to one of the new packaged bank accounts, you can keep it until it expires and still make the switch.
- No discounted airport lounge access - Monzo Premium customers can access 1,100 airport lounges around the world at a flat rate of £24 per person per visit.
- No special offers or cashback on international transfers - Customers with Monzo Plus and Premium accounts can earn cashback on up to £25,000 worth of international transfers every year.
Monzo has decided to stop offering the Metal cards for customers on its new packaged accounts due to the cost involved in making them. Commenting on the removal of its other features from the new packaged accounts, Monzo added: "We chose not to include these because our research showed that only a small number of customers were getting the full advantage of them. A bit like with the metal card, we wanted to find a way for a wider range of people to get value from their monthly payment for Extra, Perks or Max."
If these features are important to you as a Plus or Premium customer, then it might make sense to hold off switching to one of the new paid plans.
Should you go for Monzo's new packaged bank accounts?
Monzo's three new packaged bank accounts each have their own merits. Extra's low monthly price could make sense for customers who love Monzo's additional budgeting features, but don't need its best instant access savings rate or other benefits.
Perks, priced at £7, probably represents the best value for money for those who don't travel abroad often but want everything else Monzo has to offer. It comes with lots of benefits like lower investing fees, better savings rates, and free railcards.
Max can provide good value for money too, relative to its competitors. That being said, if you're looking at Max in particular, it might be a good idea to check out the best packaged bank accounts on offer right now, so you can compare similar products, prices and features before deciding which one's right for you.
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