There are simple and legal ways to save money on consumer Microsoft 365 plans, either Personal or Family. Don’t give Microsoft more money than you have to.
Microsoft 365 is NOT a normal subscription
Microsoft 365 Personal or Family plans are different in three, potentially, money saving ways:
- Buy a ‘renewal’ at any time.
- ‘Renewals’ are really extensions’ to the current plan expiry date.
- A Microsoft 365 plan can extended up to 5 years ahead.
- Don’t have to wait until near the expiry date.
- Renewals can be purchased from ANY retailer
- You don’t have to buy/renew from Microsoft.
- That’s the most expensive way.
- A retailer can sell at a discount to Microsoft’s standard, full, price.
A Microsoft 365 consumer/retail subscription isn’t like other subscription plans. Most subscriptions only let you renew at the expiry of the current term and only pay for the renewal direct. For example, renew for another 12 months at the end of the current subscription year.
Microsoft lets other retailers sell Microsoft 365 Family or Personal both for new and existing customers.
It’s a rental not a subscription
Microsoft 365 plans are really software and online service rental. Microsoft calls it a ‘subscription’ because market research told them it was a more acceptable term than ‘rental’.
Most people, including a compliant media, have gone along with Microsoft redefinition of the word ‘subscription’.
The worst way to renew Microsoft 365
The worst and most expensive way to renew Microsoft is to let the company automatically renew the subscription.
Automatic renewal will always be at full price with no discounts.
You do NOT have to renew direct with Microsoft.
This is a common trick that many companies pull, it’s called the ‘Laziness Tax’. For example, insurance companies will often renew a policy at an inflated rate. Or the 1.5 million people who still pay for AOL, in many cases not realizing they are still being billed.
Don’t be worried if the automatic renewal doesn’t work (maybe an old or blocked credit card). There’s some days grace after the expiry date before the plan is stopped, maybe a week or more, see Will Microsoft 365 stop working if the plan is not paid?
Extend Microsoft 365 at any time
Instead of waiting until the payment date, Microsoft 365 Family or Personal plans can be extended to a future date at any time.
A consumer Microsoft 365 plan can have an expiry up to FIVE years ahead.
That means you can buy a Microsoft 365 plan at a cheaper price and add it to your existing account.
For example, a Microsoft 365 Family plan that expires in a few months time, say January 2025.
A good offer for Microsoft 365 Family 12-month is available – under the usual US$99 or equivalent. Buy it and get the all-important product key.
Login to your Microsoft account (the same one that has the existing Microsoft 365 plan) and add the purchase.
Now the Microsoft 365 plan will expire in January 2026 or 15 months away.
If it’s a really good deal, follow the lead of other Office Watch readers and buy two, three or four annual packs.
It’s OK by Microsoft
A common objection to extending a Microsoft 365 plan is that it’s somehow wrong or not allowed by Microsoft. Far from it – Microsoft explicitly permits it.
“You can renew and extend the duration of a Microsoft 365 subscription for a maximum of 5 years.”
The five-year rule has been in place ever since Microsoft 365 plans started. Originally the rules said you had to buy extra years from the same retailer, that was never enforced and now that limit has been dropped.
Looking for a Microsoft 365 good price
Any reputable retailer will do.
- The same plan as you already have: Microsoft 365 Family/Home or Microsoft 365 Personal.
- You’re buying a one-time product key that’s added to your existing Microsoft 365 plan.
- There’s no special renewal product. It’s the same Microsoft 365 Family/Personal for both new and renewals.
- It doesn’t have to be the same store as you bought Microsoft 365 before but it does have to be in the same country.
- Sometimes it’s cheaper to have the product physically delivered (by post) than getting electronically.
- Discounts on Microsoft 365 Family happen fairly often but are less common for the Personal (one person) plan.
In North America, Costco seems to have Microsoft 365 discounts almost all the time.
Look for 15-month offers that usually work out to a better price per month.
Microsoft 365 is sometimes offered as a bundle with some other software. Most commonly a limited subscription some security software to lure you into another regular payment of dubious value. Sometimes the total price is under what you’d pay for Microsoft 365 alone, if so, buy the bundle and ignore the extra software.
Amazon and Best Buy have their own full-price renewal traps. If you buy Microsoft 365 Family/Personal, that company will sign you up for auto-renewal by them at full price. You have to explicitly stop that after the initial purchase.
How to extend a Microsoft 365 plan
It’s easy to renew/extend a Microsoft 365 Family or Personal plan.
Buy a Microsoft 365 plan
Make sure it’s the same type as what you have already.
- Family – formerly Home. For up to six people
- Personal – for one person.
Get the product key
You’ll get a product key either electronically or on a paper card. Either way, it’s your key to extending a Microsoft 365 plan.
A Microsoft 365 Product Key is a 25-character code, separated into five blocks for easier reading.
Login
Go to https://setup.office.com/ and log into the correct Microsoft account (top right).
IMPORTANT: make sure you’re logged into the Microsoft account that ‘owns’ your existing Microsoft 365 plan. Many people have more than one Microsoft account for work, personal or more and it’s easy to forget which one is currently logged in.
Click ‘Get Started’ then type in or copy/paste the product key.
As you can see above, there’s one last check that you’re using the correct Microsoft account.
That’s it! You can check your account at “Services and Subscriptions” to see the new expiry date, sometimes given as the “Next charge” date.
Other Microsoft 365 discount offers
There are two important Microsoft 365 discount plans that are available to many people including many who don’t realize they qualify.
Both plans have good discounts but renewals differ in one important way.
Workplace Discount Program
Staff for many organizations and government agencies can buy Microsoft 365 Family or Personal for 30% off using the Workplace Discount Program.
Renewal: Once you’ve joined the Workplace Discount Program, you can continue to renew at the lower price even if you leave that employer.
Military Appreciation Edition
US Military personnel can buy a discounted “Military Appreciation Edition” from the “PX”.
Renewal: To renew at a lower price, you have to buy another Military Appreciation Edition from the ‘PX’, otherwise the renewal will be automatic by Microsoft at full price.
6 steps to saving on Microsoft 365 renewals or first purchase
