Monzo Premium - is 1.5% enough?

Given accounts like Chase are now offering 1.5% AER for all customers upto £250k shouldn’t the interest rate ’bonus’ as part of Monzo premium be reviewed to keep it competitive?

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I’m sure they keep it under review all the time. When they’re ready, they’ll change it. My guess is that this will happen when people start to cancel their Plus/Premium and give, as their reason for cancelling, “Interest rate uncompetitive.”

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I think the answer is “yes” it should be reviewed.

They do seem quite resistant to upping the rates though, for reasons unknown.

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I have a feeling that Chase will remove all its benefits in a year or so (when they are big enough); it’s obviously costing them more to service 1.5% interest

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1.5% from Chase is obviously good (the best?) but there are a few others that are creeping to catch up. I want to say Virgin? Atom maybe too?

The percentage points lead they had when it started definitely isn’t as big as it was.

At 1.56%, I’d say they’ve overtaken :blush:

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1.5% is still competitive but not the best

(ignoring the fact that you have to pay monzo to pay you… :exploding_head:)

From: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

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Chase at the moment is still market leading, at least based on the deposit minimum & maximum, easy access, even with direct debit facility.

There are others that match or exceed chase but have caps/limits.

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I’d be expecting 3% return realistically, considering when interest rates were at the lowest, 1.5% was offered, making me think that Monzo could easily handle a 1.5% excess over the bank rate.

Personally I’d like the % to be available on a higher £ value too.

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I have always assumed that interest is paid out of / offset by the monthly fee. As a way to entice larger balance to stay in Monzo, and encourage card purchases to generate transaction fees stickiness.

It is known that Monzo has large deposits with BOE which are not earning enough revenue. Compared with lending things out.

I m eager to see future Monzo reports to see the effect of Flex on their balances and interest profits.

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They’ve made plenty more revenue in the last 12 months, I’m sure the report in 12 months will back that up.

But how many people will stay as plus members if it doesn’t increase?

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I won’t … thinking about dropping down tiers

Nobody (sensible) pays for Plus for the interest.

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Some people will factor interest into being the actual cost of plus though - and taking the value of plus at that lower price point. If people can get a higher % elsewhere, they may move the money out of Monzo and therefore not think Plus @ £5 is worth it

You’d be silly to keep more than £2k in there anyway.

£2k for a year with Monzo - £20 - £1.66 a month
£2k for a year with Chase - £30 - £2.50 a month

84p a month!

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