Isn’t that the whole point of Monzo’s budgeting features? To give people the information they need to know where they are. How much is safe to spend, do I need to slow down my spending etc.
If I need to “sort it out myself” then I may as well just stick with my existing bank.
Not everyone has that ability. There are those who need steering and helping hands along the way.
Quite often people don’t actually realise they are in financial difficulties until it’s too late - maybe someone loses their job, gets an illness or has an accident, or perhaps gets a large car repair bill they weren’t expecting, or burst pipes requiring extensive repairs at home. I think it’s unfair to assume people are trying to ‘pass the buck’.
Where Monzo can, and is already helping people with their finances is through the Targets feature, the upcoming Pots feature too. They also have a dedicated Head of Financial Difficulties.
Tom said something along the lines of “We don’t want to be a bank, we want to be a financial centre”. Part of that would be helping this in financial difficulty.
This really annoys me. How anyone can spend ~£3.50 or more on a cup of coffee just boggles me, let alone if you can’t afford it.
I do this 
Maybe not quite £3.50…
I guess my mantra is people can do what they want with their money, but need to remember to plan for a rainy day…
Yeah… my rainy day fund isn’t the best to be honest. Ned to sort that really.
My budgeting has got significantly better with the advent of moving my funds to Monzo. I know where I am at all times.
The CA is going to be a lifesaver.
I think the APR works out at 26% for 50p/day assuming a constant £700 overdrawn. This compares to roughly 20% for most normal banks. Obviously the APR will actually probably be less since heavy borrowers will essentially be incentivised to switch to Monzo to cut their overdraft fees so I imagine the average Monzo overdraft will soon skew towards much higher than £700.
Was everyone on the CA preview meant to receive an email with further details? Still haven’t got one
The overdraft invites were only sent to iOS users. If you haven’t received one (& it’s not in your spam folder), please contact the support team via the in-app chat, to let them know.
It sounds like you might be forgetting the overdraft useage fee that’s typically charged on top of the overdraft interest there?
If you know of any sources that detail the average charges & how they’re broken down, I’d be interested to see them 
The usage fee is only for unarranged overdrafts (which Monzo don’t offer), right?
I tried to find a source with the charges earlier but couldn’t so just went off my knowledge of HSBC, Lloyds and NatWest
There’s those too but that’s not what I was thinking of. Lloyds charge me a useage fee + a % interest rate..
https://www.lloydsbank.com/current-accounts/personal-overdrafts/rates.asp#tab-row-1
HSBC Advance planned overdraft has no usage fee and an AER of 17.9%.
That’s cool. I’m sure there’s lots of different combinations of overdraft fees & charges. So I’d be interested to see any analysis that gives an overall average. Though obviously the banks sometimes design these fees to make them difficult to calculate & compare so I’m not sure if that analysis can even be done..
I’d be happy to pay 50p a day for an overdraft with Monzo. It’s not a lot of money and lets be honest, it’s how the folks at Monzo are going to pay to keep the lights on. If you like it, back it.
It would take a while, but money.co.uk seems to have a set of planned overdraft charges in their current account lists:
It’s of course important to remember you won’t be forced to have an overdraft, and if you do, you choose what size. If you want a £100 max then have that. If you need £700, have it. The important thing is not having one too much bigger than your lowest balance, so you won’t go further into debt. And of course to decrease it when you can.
I’m working on getting my personal and joins OD’s down which I can only do now my outgoings have decreased.
I’m in debt, I’m not happy about it, but it’s happened, I partly blame being off work unpaid for 3 months a few years back. It sucks to see your balance drop slowly. Well done to anyone who’s been lucky enough not to ever have financial issues. It only takes one broken leg, or car in need of repair, or one family emergency to mess things up.
And while it may make Monzo money to have people paying OD fees (not interest 
) it’s all a financial risk to them.
Starling also have a comparison calculator: https://www.starlingbank.com/current-account/overdraft/#overdraft-calculator
