Monzo Premium - is 1.5% enough?

[JD90 (Josh)]

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?

[Anarchist (Press ‘Help’ search ‘Contact us’ or email help@monzo.com or call 0800 802 1281)]

@JD90

shouldn’t the interest rate ’bonus’ as part of Monzo premium be reviewed to keep it competitive?

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.”

[Revels]

Will Monzo increase their Interest rates?

With the arrival of the chase card offering 1.5% interest on saving accounts when is monzo going to increase the interest rates for loyal customers?

Interest rate rises - impact on Monzo

There’s some talk about interest rates being on the rise again: I was wondering what this might mean for Monzo. A few initial thoughts: The road to profitability should become easier - more revenue from customers’ deposits held in the central bank. A potential increase in the interest rate payable to Plus and Premium customers? Especially if the base rate goes up quite a bit, the current rates could start looking uncompetitive. More features in the free tier? By attracting increased custome…

[Peter_G]

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

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

[AdamSee]

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

[Revels]

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.

[PaulUK]

@Revels

that are creeping to catch up. I want to say Virgin?

At 1.56%, I’d say they’ve overtaken

[aCCount]

1.5% is still competitive but not the best

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

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

[xnox]

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.

[xnox]

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.

[walderston (Adam)]

I won’t … thinking about dropping down tiers

[Revels]

@michaelw90

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

Nobody (sensible) pays for Plus for the interest.

[Revels]

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!