Is the Monzo Premium card right for me?

Monzo Premium is a white metal card with a long list of benefits including a range of insurances. But is it worth its hefty annual fee?

Man holding credit card with the text “Monzo Premium Card” and The Motley Fool jester cap logo

Monzo Premium is an account that makes other accounts seem a little bourgeois with its white metal card and a long list of features. But it also comes with an annual price tag of £180.

While I have to admit that I’m drawn to that metal card like a millennial to an artisanal bakery, Monzo will have to wow me with their benefits in order for me to give up my very comfortable £5-a-month all-inclusive current account.

There are the travel benefits

It’s not often that I come across an account that has a slew of travel benefits that can rival a credit card, yet here we are.

With the Monzo Premium account, cardholders have access to travel insurance that covers up to £5,000 for cancellations, medical emergencies up to £10 million, and valuables up to £750.

There’s also multi-trip cover with an excess of £50. That’s not even the fun part. Travellers enjoy discounted airport lounge access, and there are no fees on foreign transactions on the first £600 for 30 days when abroad.

More insurance

Monzo Premium boasts phone insurance that covers incidents such as theft, accidental damage, cracked screen, and more. It covers phones with a value of up to £2,000 and accessories such as headphones to up to £300, with a £75 excess.

Savings account-like benefits

As a Monzo account holder, you can earn up to 1.50% AER (1.49% gross) variable interest on the first £2,000 in their accounts. There is also the option to use Monzo’s Advanced Roundups facility to automatically put aside 2, 5 or 10 times as much spare change every time you spend.

Online safety and convenience

There are going to be days where you don’t have the opportunity to swipe that precious metal and instead, you’ll be forced to enter your details online. For many, this is a heart-stopping moment.

Thankfully, Monzo Premium offers cardholders up to five virtual accounts to improve their online safety as these virtual card numbers are used instead, protecting the main card.

Convenience is a factor to consider. Thanks to the Monzo app, account holders can add credit cards, such as American Express, and link other bank accounts to their profile.

While this feature gets my budget-conscious inner child all giddy with excitement, there’s also the nit-picking safety freak that wonders whether this will place all of my accounts in the same proverbial basket.

Keep in good health

Credit health, that is. Account holders have access to their credit profile without the hassle of using a separate credit reference agency to do so.

So many choices with Monzo Premium

Monzo Premium has forged strong ties with partners such as Patch, Fiit, and Babylon Health. This allows cardholders access to exclusive discounts and special offers.

My two cents

While there are many perks, I must admit that I’m fixated on the annual fee. Monzo states that they used an independent firm to calculate the costs of the insurance. The value of the insurance offered is, on average, £256. This estimate seems high as travel insurance through companies such as AXA start from as little as £34 per year. You can get decent phone insurance for less than £5 a month.

Personally, I don’t feel there’s anything special about the account apart from the metal debit card. There is also the bizarre age limit of 69, which leaves me wondering what happens to account holders who reach 70.

Account holders are forced to sign up for the account for a minimum of six months. This means you’ll pay at least £90 in fees even if you decide after the first month that the account doesn’t work for you.

The Monzo Premium account seems like a great idea until you crunch the numbers. It’s purely an account of convenience – a convenience you’ll pay for. You might just be better off with a cheap current account and a travel credit card with no annual fee.