Yep, pricing is very much something we’ll be constantly reevaluating! I’d be very surprised if we had exactly the same in 3 years time — but we also won’t be changing it in the next few months. Our focus is ensuring everyone can get an overdraft if they want to and then we can learn from them, chat to them and work out what we’ll be doing long term 
(And maybe that’s staying with this model — we just don’t know yet)
5 Likes
What is interesting here is we are discussing an overdraft fee with a maximum charge of £15.50. And I get why people can be unhappy with this as a % of overdraft amount used.
But, if Monzo changed approach and said “for all these fantastic account features and the Monzo experience we are introducing an account fee!” Most users value the service enough they would pay and be happy about it.
This is essentiall how I see the overdraft fees. I hope and expect to hardly be charged for the overdraft but if I do then, for the monzo experience overall, I am happy to accept it.
5 Likes
This would be an interesting way to frame it — £15/month for Monzo with a free overdraft 
10 Likes
You are actually paying that every month? With the figures you’ve quoted, you’d have a very odd income/outgoing pattern to remain in a £100 overdraft for the whole month. Do you really have £99 coming in every month and approx £25 outgoing every week? If not, you won’t pay £15.50 on a £100 limit every month, and even if you did, I expect it’d be fairly easy to climb out of that overdraft and remain in credit all month, selling some stuff, spending less and by using Monzo’s built-in budgeting features.
In short, Monzo’s overdraft is priced to allow for a few days’ shortcomings every month, irregularly, rather than someone who lives in an overdraft.
5 Likes
I assume this reference to fantastic account features is hypothetical and refers to a Monzo yet to be created. Just for the record I think that your customer numbers would plummet.
4 Likes
and £X a month without an overdraft would then be a logical progression 
I use Squirrel to get paid weekly so the bulk of my money doesn’t sit in my current account.
I am guilty of living in my overdraft and plan on paying off and cancelling my Monzo overdraft as soon as possible.
Still doesn’t change the fact that 50p a day is a bad deal.
Monzos customer numbers 
I am not a Monzo staff member or involved in Monzo in any way other than being a customer and Crowdcube investor. All comments are my own 
4 Likes
I can see two new credit searches from Monzo this week on my credit file, quotation and administration searches… Presuming this was to check eligibility for overdraft. If my file/points/however a company decides on their criteria, wasn’t suited to Monzo, will it become curtsy to advise a customer they are not suitable right now? 
1 Like
I would not pay a fee to access the Monzo Account, even if that included a free overdraft (which I likely would never use). Nor do I think most people would. Remember this forum is a bubble with 6-7K active monthly users that is not representative of the 200K Monzo Current Accounts. I think it’s safe to say the people in this forum are more invested than most.
5 Likes
Hey @finitejest!
I just wanted to know, can you give us an idea as to what Monzo’s own ‘eligibility criteria’ are when applying for the overdraft, and when are more people on the Google form overdraft preview list going to be unlocked and allowed to apply for one?
Thank you! 
1 Like
all, a very short update to hopefully answer some of the more frequent questions. More details will follow next week.
How quickly is overdraft being rolled out?
We are in the process of rolling out the overdraft to all of our eligible current account customers. We are doing this gradually, because we want to give ourselves time to test the infrastructure and make sure everything works as expected. Also we want to give ourselves time to react to your feedback and make sure we build the experience that works for everyone. So far, we have rolled out overdrafts in batches of a thousand people, at the rate of a few batches each week. We’ve done about 10 of these batches so far. These are either people who have expressed an interest in overdraft or offered to be an early tester + people who have been randomly selected from our more active current account users.
Will I know if I don’t get an overdraft?
If you’ve expressed interest in an overdraft or signed up to be an early tester, than you will receive an email later today informing you if you haven’t been offered an overdraft at this time. If you are one of the people randomly selected for the overdraft preview, then you are only notified if you are eligible for an overdraft.
Why didn’t I get an overdraft? Why are my limits lower than I expected?
TL;DR Please 
with us. We’re still in the early days of our overdraft offering and so the rules we currently use to determine whether or not to offer someone credit are relatively conservative. We are learning lots about the best user experience and all things lending. In addition to which, we are committed to lending responsibly. As such, we are likely to err on the side of being overly cautious and not offer you an overdraft right now, even if you have a good credit score. By rolling out lending slowly at lower amounts, it limits the risk we take on and allows us time to learn how we can best handle or avoid cases of financial difficulties or fraud.
12 Likes
re: eligibility criteria - we use information from our Credit Rating Agency + our own internal eligibility rules, which (as I mentioned above) are fairly conservative at the moment; we’ll make sure to add more information about this in our blog post next week
re: Google Form - we’ve started rolling out to users on that list on a few days ago and should get into a regular cadence from now on, say once a week we make sure we’ve looked at everyone on that list (e.g. the last 900 or so people we’re aiming to get through this week 
)
5 Likes
A couple of questions, but first welcome to the community!
Do you have a plan on how to manage Overdraft increases? Will there be a prompt in the feed or would it be a case of someone needing to contact support to see if they are eligible? If the latter, do you have a rough idea on when users can increase?
Secondly, I’m not sure if your the right person, but, a while ago I remember seeing on the forums that an option to pay for a transaction in parts was in testing, is this still rolling out and how close are we to seeing this coming to the mainstream?
2 Likes
Sounds like you weekly budget is slightly optimistic. Wouldn’t it work out slightly cheaper - regardless of the overdraft cost (unless its free) - to increase this slightly?
My budget is £85 a week which is largely for food and car club hire. It’s creeping up slowly as I work through my debt snowball.
2 Likes
I received an email from Monzo
Monzo Overdraft: We couldn’t match your email address
Hi,
Thank you for expressing an interest in a Monzo overdraft!
Unfortunately, you appear to have done so using an email address that does not match the one you used to create your Monzo account. Please use this Google Form and make sure you enter the same email address you use for Monzo (you can check in the Account tab). We’ll then aim to complete our checks in the next few days and let you know.
Thank you for helping us build overdrafts.
Have a great day.
The Monzo Team
This is my Monzo email and I have overdraft already…
I got the same e-mail and I already have an Overdraft, Ive just reported this to CoOps
I also just got that email.