An Update on Overdrafts

Exciting news incoming! We’re ready to start rolling out overdrafts to a lot more people :slight_smile:

Our aim over the next few months is to give as many Monzo customers as possible the option to use an overdraft.

Find full details on the blog :eyes:

And please share your feedback with us in this dedicated thread :point_down:


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?

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Hi guys,

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?

Nearly - by midnight rather than 24hrs

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This is how Starling works. I’m pretty sure I read somewhere that Monzo won’t be doing the same.

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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. :+1:t2:


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.


If you bring your balance within the £20 buffer the same day as going over it then no fees are applied.

Monzo have confirmed that money in pots will not count towards an overdrawn balance.

So if your main account is -£30 you will be charged a fee even if you have £10 in a pot.

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Yes they have, unfortunately. Doesn’t mean that we have to like it :slight_smile:


I agree. Was just trying to keep updates to the thread fact driven :+1:t2: The other thread has the emotions and opinions :joy:


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) :smiley::pensive:

(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)

Yes, I like going to the overdraft options, when they eventually appear :wink:


lol good point, let’s not talk about that again either, since it won’t change anything :wink:


I’m sorry to hear that you’ve not been offered an overdraft yet (I’m sure you will be very soon) but you’ve completely missed the point of my post there :grimacing:

This feels like it will be the max. Why lend £thousands at 50p a day when you can lend up to £500 at 50p a day? :face_with_raised_eyebrow:

Why not lend more? Aide from anything else, logically - giving users what they want / need would increase retention.

And I know people who’ve been offered a larger overdraft than me..

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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.


Excellent, I guess we can move on then :slightly_smiling_face: