Come to Monzo HQ to talk about Overdrafts šŸ˜„

Monzo Chat
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If monzo want to play the money markets while I sleep or have a go at wrigging LIBOR then good luck to them, I trust that they are more responsible than the ilk they are trying to destroy but am safe in the knowledge that my money is protected by law if not.

If you want interest on current accounts then maybe go with an incumbent or Starling who seem to be going with a nominal amount of interest- hold one hundred thousand pounds with any of them and earn just about enough interest to pay for a bottle of water each day.

Failing that if you are convinced there is an opportunity for ā€˜fairā€™ current accounts which pay 0% on credit and charge 0% on debts then great idea! You start a bank which does that and youā€™ll have me on board! I wonā€™t be investing but I will certainly join and max out the overdraft to invest the money elsewhere.

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83

Great but you can do that already as most high street banks have a fee free buffer. Fill your boots. :slight_smile:

P. S. You do however make a great point I am thinking of fairness but you are coming at it from a viewpoint that I should of thought of but didnā€™t.

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84

Will it be possible to disable overdrafts in favour of having payments declined when there are insufficient funds? Everything Iā€™ve read here suggests Iā€™m a lot better off using my credit card (which unfortunately is tied to me having a current account at a legacy bank).

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85

if you donā€™t apply for an overdraft you wonā€™t have one, they are not compulsory :slight_smile:

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86

What and then get hit with charges instead??

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Which charges are you referring to?

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I donā€™t get charged by Natwest if they decline a payment so I donā€™t see why there would have to be a charge necessarily.

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89

I used to get charged by Lloyds when payments got declined so I guessed most other banks charge?

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90

I see. So since Tom was just on Newsnight (at 1:32 in the embedded video), explaining how ridiculous it was that banks are charging users for rejecting Direct Debits, Iā€™d hope that Monzo isnā€™t planning to charge any fees in that scenario or if they decline a payment.

But it would be great if the team could confirm thatā€¦

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91

It can depend on the account. Lloyds do have accounts where there is no charge.

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Iā€™ve not been with Lloyds for years now but I always got charged and it used to push me in to so much additional debt.

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I canā€™t recall what I had with them. They have a Control Current Account for Ā£10 p/month that doesnā€™t charge, and anything under Ā£10 returned isnā€™t charged either (https://www.lloydsbank.com/current-accounts/personal-overdrafts/rates.asp#tab-row-3).

I have never been charged by Natwest so far, but I canā€™t see why I havenā€™t. They specifically send me a text to say I wonā€™t be charged.

Either way - I hope Monzo doesnā€™t do this. It sucks for the consumer because no doubt youā€™ll be hit with a charge from whatever company the payment is due to, AND then hit by a bank charge. I donā€™t see any reason why it costs the bank money.

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94

We definitely will not be charging any fees for declining payments or direct debits :+1: If you do not want to take out an overdraft - this is totally fine, we will just bounce the payments free of charge.

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95

Even thatā€™s not true, as just because you apply for an overdraft does not mean you will be accepted for one. Even then it might be less (more common) or more (less common) then what you asked for in the first place.

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Richard - "if you donā€™t apply for an overdraft you wonā€™t have one, they are not compulsory "

Leon replies - ā€œEven thatā€™s not true, as just because you apply for an overdraft does not mean you will be accepted for one. Even then it might be less (more common) or more (less common) then what you asked for in the first place.ā€

  • why are you getting so pedantic on this Leon ? :slight_smile:
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Youā€™re right I am, maybe a little too much so. :scream:

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Technically Richardā€™s statement is 100% true. He was relating no information about size of overdrafts, future applicantsā€™ success rate or anything else.

If you donā€™t apply for one, you will not have one. Simples!!

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99

Youā€™re right I did misread what was said now, after looking back my above post is redundant. Iā€™ll keep it there however.

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100

Dear Monzonauts, thank you so much for your feedback and such an interesting discussion! :+1:

If you are keen to learn more about what our overdraft product, you have an opportunity to take part in our user testing, which will take place during lunch time (12-1pm) on Thursday next week (May 4th) and the week after (May 11th). We will provide lunch! :burrito: Please send me a message if you are interested! :blue_heart:

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Najiā€™s just confirmed how much the buffer will be :thumbsup:

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