Monzo Premium account review

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Digital challenger bank Monzo has launched a new Premium tier for its current account. We take a look at the cost and what’s on offer.

What is Monzo Premium?

Monzo burst onto the digital banking scene in 2015, going on to launch its slick mobile app and hot coral coloured card.

The “Plus” version of its original current account went live in summer 2020 and now the “Premium” version has also hit the UK market.

As we outline below, Premium is a “packaged account” – a paid-for, beefed-up version of the basic Monzo current account, coming with benefits such as phone insurance and travel insurance. But as the name suggests, you will be paying quite a premium for all of these extra services.

What are the features of Monzo Premium?

You’ll get all of the account features that come with standard Monzo, such as savings Pots and categorised spending.

And these are the extra benefits that you’ll receive with Monzo Premium:

  • Phone insurance provided by Assurant
  • Worldwide travel insurance provided by AXA, including cancellation cover if you fall ill with COVID-19 (but it doesn’t cover cancellation if your destination is subject to coronavirus travel restrictions)
  • Monzo’s first white metal card, made from a 16g single sheet of steel
  • Interest rate of 1.50% AER variable (1.49% gross variable) on balances of up to £2,000 (either your main account balance or money kept in your regular Pots)
  • Ability to view and move money from 14 different bank and credit card accounts (including Amex) in the Monzo app
  • Five virtual cards, each with their own unique details, to shop online or manage subscriptions more securely with
  • Advanced budgeting features such as custom categories
  • £600 in fee-free withdrawals abroad every 30 days
  • Monthly credit score updates with TransUnion
  • Discounted lounge access with LoungeKey
  • Other discounts, including 25% off Patch plant orders over £50 and 25% off a FiiT home workout membership

How much is Monzo Premium?

So on to what you all want to know… just how much will Monzo Premium set you back?

Well, the answer is £180 per year.

This will seem quite hefty if you’re used to the free version of Monzo, and is a significant step up fee-wise from the Plus account, which costs £60 per year.

However, Monzo says the phone and travel insurances alone are worth £256 a year and the discounted lounge access is worth an annual average of £91.

How can I sign up to Monzo Premium?

If you decide to go with Monzo Premium, you’ll have to sign up for a minimum of 6 months (at a fee of £15 a month).

Existing Monzo users will be able to upgrade, while new joiners can open an account through the Monzo mobile app.

Pros and cons of Monzo Premium

Pros

  • Sleek new metal card
  • Phone and travel insurance, which includes certain aspects of COVID-19 cover
  • Interest paid on account balances up to £2,000
  • “Virtual cards” available for online purchases
  • Monthly credit score
  • Includes all the in-app banking features of a standard Monzo account

Cons

  • The £15 a month (£180 a year) price tag could be too pricey for some
  • As with all Monzo accounts, it’s managed digitally, so there are no branches if you prefer to bank in person

Our verdict

The launch of Monzo’s Premium account comes just months after the challenger bank went live with its re-vamped Plus account offering, which costs £60 a year. Monzo Plus may lose some customers who want to upgrade to Premium, but the annual £180 fee could prove to be a big deterrent. However, the slick metal card, new interest rate, phone cover and decent travel insurance benefits will hold appeal for some banking users. But if you decide to sign up to Premium, make sure the phone and travel insurance polices that are included provide all of the insurance cover that you would normally want. Packaged accounts like this one are generally not worth it unless you’re going to use at least two of the benefits.

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Data indicated here is updated daily
Name Product Ratings Interest (AER) Arranged overdraft Key benefits Link Representative example
We say
★★★★★
You say
★★★★★
0%
15% EAR variable
Award-winning current account, apply in minutes
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Current account switch service guarantee badge
No fees for spending or withdrawing cash overseas - currencies are converted at Mastercard’s standard exchange rate
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 15% EAR variable.
We say
★★★★★
You say
★★★★★
0%
39.94% EAR variable
Interest and fee free overdraft
for first four months when you switch
Go to site
Current account switch service guarantee badge
Up to 15% cashback at a range of major retailers
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 39.94% EAR variable.
We say
★★★★★
0%
N/A
Guaranteed acceptance plus a credit building feature
Go to site
Account fee of £5.95 per month.
We say
★★★★★
0%
N/A
Guaranteed acceptance
Go to site
Current account switch service guarantee badge
Earn cashback on your purchases when you shop through the ThinkMoney rewards portal
Account fee of £10 per month or £15 per month.
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