I seem to have gone on a bit of a big one looking at Monzo tiers.
We started yesterday talking about whether a lower (£2?) tier would be useful in the Monzo in 2021: Wish List thread.
Then I got out the spreadsheet to see if a lower tier would be financially viable for Monzo (spoilers, if my assumptions hold, then probably).
Adding all of that together, I thought it’d be fun to think about what Monzo could do with their tiers. Behold, a suggestion!
|Physical card||1 hot coral (on demand)||1 hot coral||1 hot coral||2 non-metal (choice from range)||2 (one metal)|
|Connect additional physical cards to pots||£5/card||£5/card||£5/card||£5/card||£5/card|
|Card replacement cost||£5||free (twice a year)||free (twice a year)||free (twice a year)||free (twice a year)|
|Connected Google or Apple Pay card||1||1||2||2||2|
|A UK current account|
|Your money is protected by the FSCS|
|Get paid early|
|Fee-free UK bank transfers|
|Pots for separating money|
|Apple Pay and Google Pay|
|Fee-free UK withdrawals||£250||Unlimited||Unlimited||Unlimited||Unlimited|
|Fee-free withdrawals abroad||£200||£200||£200||£400||£600|
|Other accounts, in Monzo||Max 3|
|Round-up to external accounts|
|Sweep contents of pots/main account to external accounts|
|Connect virtual cards to Google/Apple Pay|
|Connect virtual cards to Pots|
|Eat-out discount card|
|Interest on your balance and regular Pots||0.05%||0.20%||1.00%||1.50%|
|Disposable / one-use virtual cards|
|Credit card pots|
|Free cash deposits at PayPoints across the UK||1||5|
|Worldwide travel insurance|
|Price||Free||Free or £1 per month||£2.50 per month||£5 per month||£15 per month|
Two new tiers here: #FullMonzo (better name needed) and Extra. Extra is the cheaper tier at £2.50, #FullMonzo tries to bring together the new fees that came in last year to make the product offering coherent. If you meet the criteria set out in the blog, then you are #fullmonzo and you get those features for free - the difference in this model is If you don’t then you can buy your way in for £1/month.
A few other changes:
- I’ve suggested that #fullmonzo customers will get a limited version of stuff that’s currently in Plus: offers, one virtual card and three connected accounts. If they’re useful, then they will help customers to decide to upgrade.
- Interest is back! I think psychologically it’s important for a main bank account, even if it’s peppercorn. Nothing for the basic account, 0.05% for #fullmonzo and 0.20% for Extra.
- For cards, I’m suggesting a new revenue stream: users of any tier can purchase a physical card for a one-off cost and connect it to a pot. For Plus and Premium cardholders, they get one extra card free (so, instead of getting a new Holo card and the hot coral stopping working, you could use the coral one for a pot, for example). In my head, I also have a wider range of cards available, including wooden ones.
- I’ve taken inspiration from Starling’s Connected Card, but made it digital (Google/Apple pay only). You’d be able to send it to someone to buy stuff for you out of a pot.
- Extra, Plus and Premium customers can round-up or regularly sweep money from your account / pots to an account with another provider.
- Extra, Plus and Premium get a full web interface. The others stay with the emergency one*.
- Disposable / one-use virtual cards for Plus and Premium customers*
- Credit card pots (move money to a pot when you spend on your credit card) also for Plus and Premium customers*.
Edit! Here’s a poll!
If you’re not a paying customer at the moment, what tier would you go for?
- Free account
- #FullMonzo (for free - I qualify)
- #FullMonzo (I’d pay £1)
- I’d move away
If you already have Plus or Premium, what would you do?
- Stay on Premium
- Stay on Plus
- Downgrade to Extra
- Downgrade to #FullMonzo
- Downgrade to free account
- I’d move away
*Financially, there may well be an argument to put these in Extra, too. You’d want to make them Plus / Premium exclusive if you were making more per month from Plus and Premium than Extra, though.