Monzo offers three account tiers: a free account, Monzo Plus (£5/month), and Monzo Premium (£15/month). Each adds progressively more features. Whether upgrading makes financial sense depends on how you use your account.
Part of the Monzo hub — detailed guides covering every aspect of Monzo’s accounts, fees, limits, and features. For a full account verdict, see the Monzo Review 2026.
Monzo Plans at a Glance
| Feature | Free | Plus (£5/mo) | Premium (£15/mo) |
|---|---|---|---|
| Monthly fee | £0 | £5 | £15 |
| Annual cost | £0 | £60 | £180 |
| Interest on balance | 0% | 1.5% AER (up to £2k) | 3% AER (up to £2k) |
| Max interest per year on £2k | £0 | £30 | £60 |
| UK ATM — free | 1/month | Unlimited | Unlimited |
| Foreign ATM free allowance | £200/month | £400/month | £600/month |
| Virtual cards | ❌ | ✅ | ✅ |
| Credit tracker | ❌ | ✅ | ✅ |
| Cashback (selected retailers) | ❌ | ✅ | ✅ |
| Travel insurance | ❌ | ❌ | ✅ Worldwide |
| Phone insurance | ❌ | ❌ | ✅ (up to £2k device) |
| Airport lounge access | ❌ | ❌ | ✅ 2 visits/year |
| Metal card option | ❌ | ❌ | ✅ |
Monzo Plus — Is It Worth £5/Month?
Monzo Plus costs £60/year. To justify it, it needs to save or earn you at least £60.
The ATM Argument
The free account charges 3% per UK ATM withdrawal after the first monthly free withdrawal (see Monzo’s full fee schedule for all charges). If you regularly take out cash:
| ATM withdrawals/month | Monthly fee (free account) | Monthly Plus cost |
|---|---|---|
| 1 | £0 (free) | £5 |
| 2 (e.g. 2 × £50) | £1.50 | £5 |
| 3 (e.g. 3 × £50) | £3.00 | £5 |
| 4 (e.g. 4 × £50) | £4.50 | £5 |
| 5+ per month | £6.00+ | £5 — Plus wins |
If you make 5 or more ATM withdrawals per month, Monzo Plus saves money on fees alone. If you make 3–4, it is roughly break-even with the added benefits of virtual cards and the credit tracker.
The Interest Argument
Plus pays 1.5% AER on balances up to £2,000. Maximum annual interest: £30.
At £60/year cost, interest alone does not justify Plus. But combined with ATM savings and extras, the maths can work.
The Virtual Cards Argument
Virtual cards let you create temporary card numbers for online shopping — useful for free trial sign-ups, reducing fraud risk, or managing subscriptions. If you value this for security, it adds to the Plus case.
Verdict on Plus: Worth it if you use ATMs more than 4 times a month, or value virtual cards and credit tracking. Marginal for infrequent cash users who could simply switch to Chase or Starling for unlimited free ATM access.
Monzo Premium — Is It Worth £15/Month?
Monzo Premium costs £180/year. The headline addition over Plus is the travel insurance and phone insurance bundle.
The Travel Insurance Argument
Premium includes worldwide travel insurance via Zurich — for ATM limits and how Monzo works abroad, also see Monzo Abroad. Coverage includes:
- Medical expenses abroad
- Trip cancellation and curtailment
- Baggage loss/delay
- Personal liability
For comparison, a standalone annual worldwide travel insurance policy typically costs:
- Single person: £40–£90/year
- Couple: £80–£150/year
- Family: £100–£200/year
If you and a partner both use Premium and would otherwise buy annual travel insurance separately, the combined Premium cost of £360/year needs to beat your standalone travel insurance cost plus the ATM and interest benefits already in Plus.
Worked example: A couple taking 3 overseas holidays per year:
- Standalone annual family travel insurance: £120/year
- Standalone phone insurance (2 phones): £100–£200/year
- Airport lounge visits (2 per year each): £40–£80 saved
Combined value of Premium extras vs Plus: potentially £260–£400/year in standalone costs. At £180/year additional cost over Plus (or £120/year additional over the free account), Premium can represent good value for regular travellers.
The Interest Argument
Premium pays 3% AER on balances up to £2,000. Maximum annual interest: £60 — exactly covering the annual fee increase from Plus to Premium.
But 3% on £2,000 is modest versus alternatives. Chase UK pays 5% AER on balances with no monthly fee. If interest is your priority, Chase beats Monzo Premium on balances without the £180/year cost.
Who Premium Suits
Monzo Premium is best suited to:
- Regular travellers who take 2+ international trips per year
- People who want phone insurance included alongside their bank account
- Couples where both partners use the same Monzo account (each needs their own Premium subscription for separate insurance)
Verdict on Premium: Justified by travel insurance for regular travellers. Less compelling if you rarely travel — the interest gain over free/Plus is modest compared to alternatives.
Alternatives to Upgrading
Before committing to Plus or Premium, consider:
| Need | Free alternative |
|---|---|
| Unlimited free UK ATMs | Switch primary card to Chase UK or Starling (both free) |
| Better interest | Chase UK (5% AER, no fee) |
| Travel insurance | Standalone annual policy (from ~£40/year for a single person) |
| Travel card | Chase UK or Starling for fee-free foreign spending |
Many Monzo users keep a free Monzo account for its budgeting tools and Pots, while using Chase UK as their primary spending card for the interest rate and ATM access.
How to Upgrade or Downgrade
To upgrade to Plus or Premium:
- Open the Monzo app
- Go to Account → Upgrade (or tap the plan option)
- Review what’s included, select your plan
- Payment is monthly by direct debit — cancels anytime
To cancel (downgrade to free):
- Go to Account → your current plan
- Select Cancel plan
- Cancellation applies from the next billing date — no refund for the current month
Related Monzo Guides
Monzo Hub
- Monzo Hub — Complete Guide — Everything about Monzo in one place
- Monzo Review 2026 — Full account review and verdict
Monzo Features
- Monzo Pots Explained — How to use pots for budgeting and saving
- Monzo Fees 2026 — Full fee schedule for all tiers
- Monzo ATM Withdrawal Limit — UK and abroad cash limits
- Monzo Abroad — Foreign spending, ATM limits, and travel tips
- Monzo Transfer Limit — How much you can send
- Can You Deposit Cash with Monzo? — Fees, limits, and locations
- Monzo Gambling Block — How to turn it on
- Monzo Customer Service — How to get help
- Monzo Sort Code — Sort code and account number
Compare
- Monzo vs Starling vs Revolut — Full digital bank comparison
- Chase UK Review 2026 — The best alternative for interest and ATM access
- Starling Bank Review 2026 — The other leading free digital bank