Monzo Premium will cost £15 per month and includes travel and phone insurance, 1.5 per cent AER interest on balances up to £2,000 and a white metal card.
Following the success of Monzo Plus, the digital bank has launched a second attempt to bolster its revenues after its 2020 results cast “material uncertainty” on the bank’s future ability to operate, with Monzo Plus generating roughly £750,000 in its first three months.
Mike Hudack, Monzo’s chief product officer, told AltFi: “Monzo Premium has everything that Monzo Plus has and more. Monzo Plus got 50,000 customers in the first four weeks and people love it so building on that foundation has been really important to us.”
“We have great expectations for the product, we think we’re creating a tonne of value,” he added.
The newest paid-for service will cost £15 per month (£180 per year) and carries a six-month minimum contract, a slightly higher fee than other digital banks on the market.
With its latest subscription, Monzo is offering customers all the perks of Monzo Plus as well as phone insurance, exclusive discounts, five free cash deposits per month, 1.5 per cent AER interest on balances up to £2,000 and the ability to withdraw £600 fee-free cash abroad.
Monzo Plus perks that Premium customers receive include new budgeting tools, credit checks in partnership with TransUnion, the ability to create up to five virtual cards and create custom spending categories.
The travel insurance covers Covid-19, something that’s in high demand at the moment, which includes if you or a close relative catch the virus, if you have to quarantine as per government guidelines, if a family member you are meant to be staying with has coronavirus, or if you are told you can’t leave the airport because you have coronavirus symptoms.
Underwritten by AXA, the policy also covers all the things you’d expect from your travel insurance, such as winter sports coverage, medical bill coverage up to £10m, lost valuables up to £750, baggage delay, with customers receiving £300 for a four-hour delay and £700 for 48 hours, and cancellation costs of up to £5,000.
According to independent research group Consumer Intelligence, customers could save £76 a year on insurance alone with Monzo Premium.
As well as the other perks, Monzo’s customers will be able to order a new Premium metal card with the subscription.
The new card weighs 16 grams, is cut from a single sheet of steel and, in another step away from its famous signature hot coral, will be white.
Hudack told AltFi: “One of our most requested features was for a metal card. So, we, of course, would be silly not to include one,” he went on to describe how both the Monzo and MasterCard logos have been engraved onto the single sheet of metal.
Monzo Premium customers need not worry about the durability of the new metal card either, Hudack demonstrated its sturdiness to AltFi by banging it on the table in front of him: “It’s quite solid!”