FinTech Monzo has launched Monzo Premium for customers with extra features.
In Brief:
-
The account costs £15 per month with a minimum six-month commitment, or £180 per year.
-
It comes with a metal payment card.
-
Monzo Premium offers insurance products, higher fee-free withdrawals abroad and interest on savings.
What does this mean?
Premium products are a way challenger banks can earn revenue from their customers, many of whom do not currently pay to use the services offered by Monzo and its competitors. Monzo has tried to release a premium product before which it withdrew and does charge non-premium customers for certain features already. It says the move is necessary to keep the business model sustainable.
