- Plus and Premium plans are being replaced by Extra, Perks and Max
- Perks and Max customers get free Greggs and an annual Trainline railcard
- The additional plan is cheaper than the plus by £3, but does not include a 4.6% savings rate
Monzo has revamped its payment bank accounts and is now offering customers benefits such as rail cards and Greggs gifts.
The digital bank has introduced three new payment plans: Extra, Perks and Max, which replace its existing Plus and Premium plans for new customers.
It marks the first changes to Monzo’s plans since it introduced subscriptions in July 2020.
However, new Monzo customers will have to shell out more each month if they want to access the same benefits.
New benefits: 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, £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 have access to advanced spare change summary features and information about their credit score.
Customers will also be able to get unlimited, fee-free cash withdrawals in the UK and Europe, and £200 fee-free in the rest of the world. Additionally, customers can currently withdraw up to £400 every 30 days.
However, while Plus customers also had access to an easy access savings account at 4.6 per cent, 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 looks a lot like Monzo Premium, will cost £17 a month.
The changes come just months after rival Revolut increased monthly account fees to £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 Trainline rail card.
Monzo claims customers can save an average of £88 each year by taking advantage of its new Greggs offer, saving more than the annual cost of the Perks plan which costs £84.
Benefits customers will also receive discounted investment fees, 4.6 per cent interest on Instant Access Savings Funds 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 in the rest of the world.
Max customers will have access to telephone and travel insurance worldwide, as well as breakdown cover in the UK and Europe.
Additionally, customers will be able to upgrade their Max cover to full family cover for an extra £5 per month.
This will include travel insurance for financially dependent couples and children aged 21 and under, car breakdown cover and telephone insurance.
Monzo Perks and Max customers will also receive new cards with an exclusive design.
Existing Plus and Premium customers will be invited to switch to the new plans, but will also be able to keep their current subscription if they prefer.
Plus and Premium will no longer be available to customers who do not already have a subscription.
Monzo’s free basic account is still available for those who don’t want to pay.
Monzo chief product officer Fernando Fanton said: “Whether it’s the best savings rates from Monzo, a weekly gift from Greggs, travel insurance, breakdown cover or even more tools to supercharge your budget, 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, listening to what matters most to them, and we know they like a sausage roll given they spent a total of £70m at Greggs last year.”