At the moment, I’m a Monzo Plus user. Monzo is my only bank, and a have both personal and joint with my wife. I’ve been a Monzo user since 2016, and I can honestly say that (for me) Monzo Flex has done to credit cards, what Monzo/Mondo did for banking 6 years ago!
I love it. And I like supporting Monzo with a plus subscription, but I can’t justify the jump to premium. However, given the introduction of Flex, and the Monzo backed savings pot, what could be an easy win would be additional benefits to all things internal to Monzo.
I would prefer (and obviously, I can only speak for myself), that Monzo drop the “additional perks” like phone insurance, and travel insurance, which is mainly a watered down third party service. Then add to Monzo’s own services.
4 months interest free for Plus, and 6 months for premium. Reduced APR on Flex and increased APR for savings for Plus and Premium. We already do this with cash deposits, interest on main account, ATM withdrawals abroad. So it just feels natural.
And as a win-win, it incentivises continued use of all three products. Why switch away from flex, when you’d lose some of the value of Premium that you’re paying for? Why turn off your Premium, when Flex is your main credit card? Etc.
These things are quite possibly negligible and don’t really cost anything to make a dent, whereas 3 months interest on a £5k purchase split into 12 payments is quite significant in terms of a loss of revenue.
Whilst yes, I’m personally on board with extras for being faithful, I’d probably go towards say 1 free Virtual card and 1 free linked account for having the whole lot.
Open banking and virtual cards can’t surely amass to a huge financial burden they need to be charged for every month forever.
If you were lending £6k, for 6 months (not the 12 you suggested) at about 6% APR - That’s the equivalent of around £15 per month in interest. To do that interest free, but charge for the Premium account makes sense.
Obviously I don’t have the data on how often people choose to flex for longer periods, what the costs and benefits are, how much people tend to borrow etc. But I don’t think it’s a crazy loss, otherwise the current 3 months interest free would already be too much.
Haha, sorry I didn’t mean to make you feel like you’re on some silly rate! That’s normal for a credit card, and I think what most (if not all) of us are on, and so you’re right it would be a lost income.
I just used 6% as a cost. Like it would be a lost income but not an actual loss, if that makes sense?