Does the free midnight overdraft 'hurt' Monzo?

Does anyone know if being temporarily overdrawn ‘hurts’ Monzo in any way?

I.e. I am paid tomorrow and will use the Get Paid Early function at 4pm today. As such, I paid off an £800 credit card bill this morning, so let’s assume until 4pm my balance will be -£800.

As Monzo charges no overdraft fees providing that by midnight your balance is £0+ again, I won’t pay any fees in this scenario.

Does what equates to, effectively a very short-term interest-free loan, ‘hurt’ Monzo in any way?

Presumably not, but does anyone know for sure? :bank::moneybag::credit_card:

I really wouldn’t be concerned with “hurting Monzo”.

I don’t believe it is a loan or anything of the sort. As I understand it all banks reconcile their figures daily and move the money on mass (generally it’s just numbers changing and not actual money moving) so if you clear it before then it’s like it never happened.

That’s my assumption RE reconciling the figures daily.

This is more to satiate my own curiosity, rather than a concern around “hurting Monzo” necessarily.

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No worries :slight_smile: I believe my theory to be correct after reading a comment from one of Monzos heads of payment processing. I could be wrong but I’ll see if I can find a link to it.

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Don’t know, but interestingly it’s no longer available on business accounts.

Found it :smiley:

Explained much better than my attempt too!


Legend! Thank you :mag:

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