Curious how overdrafts could intersect with pots. For example, if I have an overdraft, go negative, but have a balance in pots, will overdraft fees be applied? Could it be possible to have a soft-overdraft that doesn’t impact on credit score, underwritten by my pots balance?
I have a question regarding the 50p a day charge. For example, say I have £20 in my account and I totally forgot about a £50 direct debit. The DD happens and puts my balance at -£30, I get the notification of this and add funds to my account to get back in the black. If this is done in under 24 hours am I still charged the 50p?
I think the blog needs to cover the scenario of “how do I know if I am not eligible?” As this is derived by the absence of information to press and will bring up more questions than what if I don’t want it.
This! A soft overdraft with no fee until it exceeds the balance in pots would be incredibly useful, make pots better and be fair (afterall, it is legally one account, how can you be charged overdraft with plenty of money in the account?).
Unfortunately, I do believe I remember reading Monzo say they won’t do this.
Pots is technically a ‘ring-fenced’ money that’s meant to be untouchable. I think future plan for Pots is possibly to enable us to sign up for products with third-party providers, e.g. saving a pot then opening a nutmeg ISA with the pot etc, which in other words that money would have been sent to Nutmeg and will no longer be held by Monzo. I believe it’s probably with that philosophy that Monzo has built the system with the expectation that Pots will be a ring-fenced money that Monzo will have no access to.
But I think such problems can be easily prevented by Monzo’s real-time notifications? When you go negative Monzo will send alerts asking us to transfer balances back to the current account and if we do so by midnight then no charges will be levied/ credit scores won’t be impacted etc so I don’t see why having lots of money in pots but accidentally going overdrawn on your current account would be an issue?
Is it just me or does anyone else like going to the manage overdraft options now to see how much Monzo’s willing to lend them aka whether their credit score is improving (or not)
(please let’s not turn this into a discussion about how much Monzo are willing / unwilling to lend you, this is just an interesting insight that I thought I’d highlight & Monzo’s being conservative deliberately)
I don’t really understand the point of your post.
I have successfully managed my banking life for over 40 years by working, borrowing, repaying loans as agreed and never knowing or taking any action to deliberately alter my credit rating. Of course, I started borrowing when you made an appointment with the Building Society after saving the deposit with them. The BS (usually manager) employee would eye you up and down, look at your records and plans and make a decision based on experience.
So no, I couldn’t give a hoot about my credit rating nor indeed if Monzo want to grant me credit facilities or not.