@mrw34 Quite impressed with the level of transparency there, from what I can see it always shows that another bank will be cheaper! Does also show you just how expensive the Monzo proposed pricing is, you’d need to borrow almost £1,300 per day every day for 30 days for the Monzo pricing scheme to be cheaper than a Starling overdraft, and First Direct are still cheaper at that level of borrowing.
Great if limits are going to be high and you max the OD to move the money else where, on a more typical borrowing average of around £500, Monzo will be 3x more expensive. Currentlly they’ve priced themselves towards the more expensive end of the legacy banks. Not quite what I was hoping for
I like the simplicity but the price point is high and it should probably have bands e.g. 30p per 1,000. Has there been any word on how high the limits are likely to go? (assume these will depend on the outcome of the credit check).
This is “fine” piece of marketing… There’s this remark on this page:
Additionally, if your total overdraft interest charges are less than 10p at the end of any given month, it’s on us – we’ll waive your interest charge for that month.
Oh, they are giving me something?! That’s great, let’s see how it works! I moved slider to £10, fee is already 12p. So their free buffer is actually ridiculous. It looks like they are giving you something, but it’s laughable offer once you already check it.
Great page indeed, not even once Starling appears at first position. I know this argument that cheapest doesn’t always mean the best, but… It’s more of a fail for me.
I thought this - because it didnt look right to me on the starling calculator for Lloyds Bank Group, who incidentally currently add an overdraft usage fee - but are also scrapping them shortly (across the group). Also TSB/LBG charges show as different - and in reality they were identical (although tsb are also changing fee’s).
I can remember before the whole ‘penalty’ charge cases were brought it just used to be done on APR. Which is pretty easy to compare - ie 10% is less then 20%. Especially for those who aren’t constantly overdrawn and might dip in and out of it - because how do you know in advance of a vet bill, car repair and therefore how many days you’ll be overdrawn? And its not especially easy to compare (when you dont know how many days you might be), plus o/d usage fee’s quickly and easily vs an APR.
One thing i would like is to be able to select when the fee comes out - so it was inline with any the other bills and not just randomly.
Having a Credit product like Overdraft does not impact score unless the customer has multiple limit ( active and inactive) in comparison to their income. Missing payments often have a significant impact on credit score so not paying the Overdraft or high Overdraft utilisation over a period of time may impact the credit score. Hope That helps.
We should be able to give Pre-reminders ( One day before the Direct debit ) or on the Day. Not sure when but this will be very useful to customers to organise their finances
(I’ve checked &) this email’s just been sent to everyone who registered but hasn’t yet been invited to preview the overdrafts -
We emailed you a few weeks ago to see whether you were interested in giving the Monzo overdraft a go and you said you’d be up for it. We just wanted to send a quick update to let you know what’s happening now
It’s taking us a bit longer than we hoped to get up and running — we’ve now offered overdrafts to a handful of people externally but it’s still a pretty manual process. Over the next few weeks, we hope this’ll start to speed up and more of you will hear from us!
In short: don’t panic, hold tight — as soon as we can let you know next steps, we will
In this article you mentioned that normal banks charge 50p or a pound a day because they think that normal people can’t understand percentages :https://monzo.com/blog/2016/09/07/our-approach-to-overdrafts/
You implied that this was too much, giving examples of how this translated into 200% to 400% in terms of interest.
Surely there is a way to educate customers about the charges and that they will be better off being charged a % of the loan?
In the process of transferring my account from Starling to my Monzo current account. The only thing I’m missing is an overdraft. Any update when this will be offered to Android users?
Let me know Hugh! I had a ticket to go this evening, but due to feeling like death warmed up with full on man flu, I am instead at home with a blanket and a hot lemsip!
Will it be possible to have a easily adaptable overdraft on the current account as seen on starling bank? You can use a slider to increase or decrease up to a max. Very neat.
It looks like they are giving you something, but it’s laughable offer once you already check it.
