Monzo Plus account idea?

I used to have a Nationwide FlexPlus when it was £10 per month, for the travel insurance and mobile cover. Then the price went up, and the probability of us travelling outside Europe dropped to almost none. The breakdown cover for cars ain’t worth it as we don’t drive and rarely travel in other cars.

Now have separate travel insurance, and didn’t really need the mobile insurance enough to buy a separate policy.

I could be convinced to get a similar paid account for travel insurance etc.

That’s an awesome idea!!!

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I’d love to see this too :slightly_smiling_face:

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I feel like after having packaged accounts in the past you end up paying for some things you won’t use or would never have paid for in the first place. I think the way to go is by having add-ons such as phone insurance, travel insurance or breakdown cover. Adding more than one could give a discount, these would need to be reasonably priced to compete with the packaged accounts out there already.

The only account I pay for at the moment is Santander 123 Lite which is £1 a month, I make £7 a month from using it to pay certain bills by direct debit. Is this something Monzo could offer too?

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This is often said in relation to the FlexPlus account, which I also have and think is good value for money. However, if you can afford to keep £2,500 in the FlexPlus account you could keep it in a Nationwide Fixed Rate ISA at 2% for no fee instead, and earn £4.16 per month. Therefore, it actually saves you only £2.09 off the price of the FlexPlus account :slight_smile:

(I’ll go and hide again now)

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Why would I want to earn 2% in the ISA when I could earn 3% in the FlexPlus?

I’m coming at this from the viewpoint that, when I had a FlexPlus, I wanted all the features, and £13 per month is a good price for breakdown, travel and mobile insurance, so maximising my interest only brought down that cost further.

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Not quite certain of your logic here.

The real question is: why wouldn’t you want to earn 5% at TSB? :thinking:

oh, wait, I think I know why :rofl:

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You wouldn’t want to do that I agree. I am just saying the saving on the fee isn’t as great as many think it is given that the same £2,500 could earn you at least some interest elsewhere for no fee :slight_smile:

For example, say I closed my FlexPlus account and put my £2,500 in an ISA for 2% I still get £4.16 per month on that money, therefore the difference between that and the £6.25 I would get in my FlexPlus is £2.09.

But I’d decided to pay the fee regardless. The fee came first, the interest (which at both 2% and 3% is currently less than inflation anyway) just made the deal sweeter.

I do understand that £4.16 interest is better than £6.25 minus a £13 fee, but not when you’re prioritising the services that the £13 fee gets you higher than the interest.

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I completely agree. I was just pointing out the difference between the perceived saving and the actual saving on the monthly fee. It’s still better to pay for the account if you value the services and that is why I have the FlexPlus account :slight_smile:

It’s important because Nationwide will also have thought of this and will have priced the FlexPlus accordingly knowing that people are going to leave £2,500 in the account if they can afford to do that.

I think a lot of confusion and bad feelings about these packaged accounts come from the fact that some don’t consider if they actually want / need the insurance products on offer.

If you consider these products you first need to ask yourself three questions:

  1. Do I need the insurance?
  2. Will I be covered by it?
  3. Is this the cheapest deal I can get for the insurance on offer?

You should only continue if the answer to all 3 questions is yes.

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Monzo Plus would be awesome, I think the issue with third parties is unless the integration with Monzo is seamless it will just mean having stacks of accounts on others apps which is just effort.

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This is 100% the only reason I have not yet switched my bank account over to be with Monzo receiving my salary. As also with Nationwide I do not even have to pay any extra but just the fact that each month I pay over £700 I have access to a 5% saving account - Does anyone know if Monzo are looking to bring perks like this into it in the future?

You’ve commented on a topic that’s over a year old. A lot has gone on since then.

Take a look at Monzo Points and Monzo Plus to name a few and you’ll get an idea of what they’re working on, currently offering and planning to offer.

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Closed as there are more up to date topics available