- Plus and Premium plans are being replaced with Extra, Perks and Max
- Perks and Max customers get free Greggs and an annual Trainline railcard
- Extra plan is cheaper than plus at £3 – but doesn’t include 4.6% savings rate
Monzo has revamped its paid-for bank accounts and is now offering customers perks such as railcards and free treats from Greggs.
The digital bank has introduced three new paid-for plans – Extra, Perks and Max – replacing its existing Plus and Premium plans for new customers.
It marks the first changes to Monzo plans since it introduced subscriptions in July 2020.
New Monzo customers will need to fork out more every month if they want access to the same benefits, however.
New perks: Monzo introduces three new subscription plans offering customers new benefits
The cheapest plan, Extra, will cost £3 a month – cheaper than the previous lowest-priced plan, Plus at £5. However, it will include fewer benefits.
As with the Plus plan, customers will be able to add other bank accounts and credit cards to their Monzo app, as well as having access to advanced spare change round-up features and credit score insights.
Customers will also be able get unlimited fee-free cash withdrawals in the UK and Europe, and £200 fee-free everywhere else. Plus customers currently are able to withdraw up to £400 every 30 days.
However, whereas Plus customers also had access to a 4.6 per cent easy access savings account, Extra customers will not.
The new Perks plan, which essentially replaces Monzo Plus, will cost £7 a month, £2 more than Plus.
The ‘Max’ plan, which closely resembles Monzo Premium, will cost £17 a month.
The changes come just months after rival Revolut hiked monthly fees for its accounts to as much as £14.99.
Monzo has introduced new benefits for Perks and Max customers, including a free weekly hot drink or snack at Greggs and an annual railcard from Trainline.
Monzo claims customers can save themselves an average of £88 every year by taking advantage of its new Greggs offer, saving more than the yearly cost of the Perks plan which costs £84.
Perks customers will also receive discounted investment fees, 4.6 per cent interest on instant access savings pots and instant access Cash Isas, instead of 4.10 per cent with Monzo’s free account.
They will also have unlimited fee-free cash withdrawals in the UK and Europe, and £600 everywhere else.
Max customers will have access to worldwide travel and phone insurance, as well as UK and European breakdown cover.
In addition, customers will be able to upgrade their Max cover with full family cover for an extra £5 a month.
This will include travel insurance for partners and any financially dependent children aged 21 or younger, car breakdown cover and phone insurance.
Monzo Perks and Max customers will also be given new cards with an exclusive design.
Existing Plus and Premium customers will be invited to switch to the new plans, but can also keep their current subscription if they prefer.
Plus and Premium will no longer be available to customers who don’t already have a subscription.
Monzo’s free basic account is still available for those that don’t want to pay.
Monzo’s chief product officer Fernando Fanton said: ‘Whether it’s Monzo’s top savings rates, a weekly treat from Greggs, travel insurance, breakdown cover or even more tools to supercharge your budgeting, we’re on a mission to make every pound and penny go further for our customers.
‘We’ve designed Extra, Perks and Max with their feedback, hearing what matters most to them – and we know they’re partial to a sausage roll given they spent a collective £70million at Greggs last year.’