Monzo has become one of the UK's most popular digital banks, known for its bright coral cards and app‑first experience. While the standard current account is free, Monzo also offers two paid tiers: Monzo Plus (£5/month) and Monzo Premium (£15/month). But are they worth the monthly fee?
In this comprehensive 2026 guide, we break down every feature, compare costs, and help you decide whether upgrading to Monzo Plus or Premium makes financial sense for your lifestyle. We'll also look at real‑world usage scenarios and alternative banks.
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📋 Table of Contents
Monzo Plus vs Premium: Overview
Monzo Plus and Monzo Premium are subscription tiers that add extra features to your free Monzo account. They are designed for customers who want more from their bank – from higher savings interest to comprehensive travel insurance.
💡 Key Differences at a Glance:
- Monzo Plus: £5/month – interest on savings (up to 1%), fee‑free spending abroad, travel insurance (Europe only), and a few extra perks.
- Monzo Premium: £15/month – everything in Plus, plus worldwide travel insurance, phone insurance, home and car hire excess insurance, and a metal card.
Feature Comparison Table
| Feature | Monzo Plus (£5/month) | Monzo Premium (£15/month) |
|---|---|---|
| Interest on savings pots | Up to 1% AER (up to £2,000) | Up to 1% AER (up to £2,000) |
| Fee‑free spending abroad | ✅ Yes (no fees) | ✅ Yes (no fees) |
| Travel insurance | Europe only | Worldwide (including winter sports) |
| Phone insurance | ❌ No | ✅ Yes (covers theft & damage, excess applies) |
| Car hire excess insurance | ❌ No | ✅ Yes (annual, worldwide) |
| Home & contents insurance | ❌ No | ✅ Yes (up to £15,000 cover) |
| Railcard discount | 33% off (selected) | 33% off (selected) |
| Card material | Plastic (or optional fee for colour) | Metal (premium finish) |
| LoungeKey passes | ❌ No | ✅ Yes (2 passes per year) |
Interest & Savings Perks
Both Plus and Premium offer interest on money you save in "pots" (Monzo’s savings feature). As of 2026, you can earn up to 1% AER on balances up to £2,000. Anything above that earns a lower rate (typically 0.5%). This is a decent rate compared to many high‑street savings accounts, but it's capped.
How much interest could you earn?
CalculationIf you keep the maximum £2,000 in a pot for a full year:
- At 1% AER: £20.00 gross interest.
- After tax (if you're a basic rate taxpayer): about £16.00 net.
If you have less than £2,000, the interest is proportionally lower. For example, £1,000 earns about £10 gross per year.
💭 Is this worth the monthly fee?
Monzo Plus costs £60/year. Even with £2,000 saved, the interest covers only a third of the fee. The real value comes from the other perks, not the interest alone.
Travel & Insurance Benefits
This is where the paid tiers shine. Both include fee‑free spending and cash withdrawals abroad (no Monzo fees, though ATM operators may charge). But the insurance packages differ significantly.
Monzo Plus Travel Insurance (Europe)
- Covers trips up to 31 days.
- Includes medical expenses, cancellation, baggage delay, and personal liability.
- Excludes winter sports and trips outside Europe.
Monzo Premium Travel Insurance (Worldwide)
- Worldwide cover, including winter sports (e.g., skiing, snowboarding).
- Higher limits: medical up to £10 million, cancellation up to £5,000.
- Also includes gadget cover (up to £1,000 for accidental damage or theft) – this is separate from the phone insurance.
Insurance value comparison
Cost BreakdownA standalone annual travel insurance policy for Europe typically costs £30–£60. Worldwide with winter sports can be £80–£150. Add phone insurance (approx. £100/year) and the Premium package easily exceeds its £180 annual fee – if you actually need all those covers.
Everyday Perks & Discounts
Both tiers give you access to exclusive discounts and offers through Monzo’s "Perks" section. These change regularly but often include:
- Railcard discount: 33% off a one‑year railcard (e.g., 16‑25, Two Together). That's about £10‑£15 saved.
- Eating out: Discounts at selected restaurants (e.g., 10% off at Pizza Pilgrims, etc.)
- Entertainment: Offers on cinema tickets, streaming services, etc.
These are nice to have but depend on whether you'd use them anyway. If you already buy a railcard, the discount alone almost covers the Plus fee.
Cost Analysis: Do You Save Money?
Let's crunch the numbers for different user profiles.
Annual cost of Plus: £60
Value received:
- Interest on £1,000 @1% = £10
- Europe travel insurance (if used once) = £40 saved
- Railcard discount = £10 saved (if you'd have bought anyway)
- Total value: ~£60 – break‑even
Verdict: Worth it if you travel at least once a year and buy a railcard.
Annual cost of Premium: £180
Value received:
- Worldwide travel + winter sports insurance = £120 saved
- Phone insurance = £100 saved
- Car hire excess = £40 saved
- Interest + other perks = £15
- Total value: ~£275 – saving of £95
Verdict: Excellent value if you genuinely need all covers.
Who Should Upgrade?
✅ Monzo Plus is for you if:
- You travel to Europe at least once a year and would otherwise buy separate travel insurance.
- You regularly buy railcards and can use the 33% discount.
- You keep a few thousand pounds in savings pots and want a bit of interest (though other savings accounts may pay more).
- You want fee‑free spending abroad (but note: the free Monzo account already offers this, though with a £200 monthly cash limit; Plus removes that limit).
✅ Monzo Premium is for you if:
- You travel outside Europe (including winter sports) multiple times a year.
- You need comprehensive phone insurance (and don't already have it via home insurance).
- You rent a car abroad and want excess cover.
- You appreciate the metal card and airport lounge access (2 passes per year).
- You'd otherwise pay for these insurances separately – then Premium is a bargain.
❌ You might NOT need either if:
- You rarely travel abroad.
- You already have comprehensive travel and phone insurance via other products (e.g., packaged bank account, credit cards, or annual policies).
- You don't keep much in savings and don't use railcards.
- You're happy with the free account's features (which already include fee‑free spending abroad with the £200/month ATM limit).
Alternatives to Monzo Paid Tiers
Monzo isn't the only game in town. Here are comparable accounts from competitors in 2026:
| Bank / Product | Monthly Fee | Key Perks |
|---|---|---|
| Starling Bank (free) | £0 | Fee‑free spending abroad, no limits, but no travel insurance or interest. |
| Chase UK (free) | £0 | 1% cashback on everyday spending (limited time), fee‑free abroad, linked savings with interest. |
| Revolut Premium | £6.99 | Worldwide travel insurance, airport lounges, higher interest rates, crypto trading. |
| Monese Premium | £5.95 | Priority support, free ATM withdrawals abroad, discounts. |
Your choice depends on which perks you value most. Chase's free cashback can be more valuable than Monzo's interest for everyday spenders. Revolut's Premium is slightly cheaper than Monzo Premium and includes more financial extras (crypto, stocks).
Final Verdict
Monzo Plus and Premium are not about getting rich from interest – they're about convenience and bundling insurance you'd likely buy anyway. For the right user, they offer excellent value and simplify your finances into one app.
Monzo Plus is a solid choice if you travel within Europe once or twice a year and would otherwise buy separate insurance. The railcard discount alone nearly covers the fee.
Monzo Premium is a powerhouse if you need comprehensive worldwide travel cover, phone insurance, and car hire excess. The combined value far exceeds the £180 annual cost for frequent travellers.
But if you're a light traveller with no need for insurance, stick with the free account – it's still one of the best current accounts in the UK.
Annual cost vs. value (Premium example)
For a frequent traveller, Premium delivers ~£95 net saving.
✅ Keep Learning
Frequently Asked Questions
Yes. Free Monzo accounts have a £200 monthly limit on fee‑free cash withdrawals abroad. With Monzo Plus or Premium, you have no limit on fee‑free withdrawals (though out‑of‑network ATMs may charge their own fees).
Yes, you can upgrade your individual account. Joint account holders each need their own subscription to get the perks on their own card. Some perks, like travel insurance, cover both account holders if you're travelling together.
It covers theft and accidental damage (including screen cracks) for phones up to 24 months old. There's an excess (typically £100). It's comparable to many standalone phone insurance policies, but check the policy wording for exclusions.
You keep your account, but lose Premium‑only features immediately: worldwide travel cover, phone insurance, etc. Any ongoing claims may be affected, so it's best to downgrade after a trip. You'll also switch back to a plastic card (or keep your metal card but without the perks).
No hidden fees. The monthly fee is clearly stated. All the included insurances are part of the package – you don't pay extra. However, always read the insurance terms for exclusions, excess amounts, and geographical limits.