Is there any upcoming changes coming to the underlying interest rates on these accounts? The offer is no longer competitive or a selling point of the accounts.
If you have a search, there a multiple threads about it.
Agreed. At this point i think it detracts from, rather than enhances, the overall Plus/Premium offer.
I suspect that the interest is only there to reduce the cost of the account for those who can keep enough funds in their account for the whole month. The accounts exist to make money for Monzo.
If the interest becomes sufficient to make the accounts effectively free, Monzo won’t be making any money from them.
It’s pretty much why I keep plus active. Plus, any interest is better than non in this current climate.
It never was a selling point due to its limits.
If you only got it for the interest then you made a mistake as you can get 1.7 - 6% now without many limitations. You are paying for the additional stuff it brings.
I do think it’s still a selling point, but I would agree the limit makes it a difficult one to push forward currently.
At the time of launch, it actually was very competitive rate / discount on the monthly fee. As no-one else offered that high rates on same day access.
Now that rates elsewhere exceeded, it means that effectively the cost of plus/premium went up for people by amount of possible interest on those accounts. £20 off £60 a year plus is no longer there, ditto £30 off £180 premium. Because one can get same or more interest elsewhere with same day access (i.e. zopa rate).
Not passing on the interest rate increases is somewhat bewildering as there are a wealth of current accounts available that have been offering better, for free, for ages (see: 2.02% on up to £1000, 1.71% thereafter on Virgin Money, as an example) - and easy/instant access savers, beyond that
It doesn’t feel very “Plus” to tack on a feature that is readily available as a baseline elsewhere - and if nobody is Plus for the account interest anyway, why even include it? Feels like it’s only incentivising an individual to lose even more money by not using another option with better rates.
Honestly, I’d much prefer an option for Plus/Premium that didn’t include account interest at all in exchange for a quid or two off the monthly cost.