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Monzo has made a name for themselves over the last few years for being an easy-to-use digital banking firm. The company allows people to manage their finances through an app and today, they’ve launched a new service which will allow customers to merge several accounts at once.
The new Monzo Premium subscription will allow customers to view and manage money from 14 different bank accounts and shop online with virtual cards.
Additionally, phone insurance will be provided and customers will be covered for loss, theft and accidental damage (including a cracked screen) to phones worth up to £2,000 (and phone accessories up to 300) with an excess of £75.
Customers will also be covered in the UK and abroad while travelling as the service provides worldwide travel insurance provided by AXA.
This will cover medical bills, lost valuables, cancellation costs and flight delays.
Monzo detailed that, according to research conducted by Consumer Intelligence, the combined annual value of Monzo Premium insurance is £256 a year.
This will be received by Mono Premium customers who will need to pay £180 a year (£15 a month for a minimum of six months) to receive the phone and travel insurance but additionally, the following benefits will be received:
- Monzo white metal card made from a 16g single sheet of steel
- Interest rate of 1.50/1.49 percent AER/Gross(variable) on up to 2,000 in balance and regular Pots
- Being able to view and move money from 14 different bank and credit card accounts seamlessly in the Monzo app – now with American Express which was the number one quested feature from Plus customers
- Shop online and manage subscriptions even more securely with up to five virtual cards, each with their own unique details
- Advanced budgeting features such as custom categories
- Three times the amount of fee-free cash that savers can take out with the original Monzo account – 600 in fee-free withdrawals abroad every 30 days
- Monthly credit score updates with TransUnion
- Offers such as discounted lounge access with Lounge Key that’s worth 91 a year on average, 15 percent off Patch plants orders over 50, and 25 percent off FiiT home workout membership
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Mike Hudack, Monzo’s Chief Product Officer, commented on the new products launch: “In building Monzo Premium we sought to provide great value for money and build on the success of Monzo Plus by adding our most requested features like phone and travel insurance and a beautiful metal card.
“And we did so while providing great value – a Premium subscription could save customers almost £80 a year on insurance alone.
“This is on top of all the great features in Plus that give subscribers complete visibility and control over their money – virtual cards to shop securely online, connected accounts to see transactions and balances from cards like American Express and 13 other bank and credit card accounts right in the Monzo app, custom categories, power round-ups and interest on their deposit balance with Monzo.
“We’re incredibly proud of Monzo Premium and the visibility, control and great value for money we’re able to offer with this product. “
The 1.5 percent interest rate will likely entice savers who are struggling to find accounts with decent returns in the current environment, as the Bank of England keeps the base rate at all-time lows.
At the moment, the central bank has the base set at 0.1 percent, the lowest it has ever been.
The next base rate decision will occur on November 5 and while it can theoretically be moved in any direction, most expect the rate to remain low or even move into negative territory.
While some may fear the prospect of the base rate going into negative territory, as they may believe savings rates will follow suit, Martin Lewis tempered fears by explaining that may not be the case.
As the Money Saving Expert detailed in a recent episode of his Money Show: “This week the Bank of England wrote to the high streets bank to say, if in the unlikely event that we were to cut UK interest rates so they were negative, are you technically prepared for that to happen?
“Now, even if that were to happen that doesn’t mean savings rates are also going negative.”
Fortunately, he went on to explain savings rates tend to be much higher than the Bank of England base rate, meaning savers should have some reprieve from dire economic changes.
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