I went into my overdraft by about £2 but the limit is £500 but I received a text that said:
“Your last payment took your balance below £0. Add money to your account before midnight to avoid overdraft fees.”
Why would it charge me fees after midnight if I haven’t passed my overdraft limit? Just a little confused.
Thanks for any help
Your overdraft isn’t free. If you’re borrowing money, you have to pay for it.
It’s an arranged overdraft fee. Which is less than an un-arranged overdraft fee. You will be charged for borrowing money like anything 
If your balance is below £0 then you are using your arranged overdraft and there are fees associated with that.
If you don’t want to pay interest, bring your balance back above £0 before midnight on the day you went into your overdraft and no interest is payable
As others have pointed out, since you’re borrowing money, you’ll need to repay it along with the fee.
For overdrafts up to £500, you’ll be charged a certain percentage. If you exceed £500, you’ll face even higher fees.
Just to add to the above answers, if you go over your £500 (unlikely but can happen in some cases), Monzo does not charge any additional fees nor do they charge interest for going into an unarranged overdraft any more.
Source:
Hi there, cheers I know that much. Usually when I have had overdrafts in the past you pay a fee if you don’t replenish your balance after a certain day of the month, never heard of before midnight. Maybe the UK works differently.
UK Overdraft laws were overhauled a few years ago, to make it fairer. People freak out when they hear that there may be a “fee” but in reality it’s not that bad at all now.
I would do some research if it’s something you want to know about, but in short:
Interest is accrued on the balance from day 1 (the day after hitting a negative balance) [Note some banks can offer a grace period before interest begins to accrue].
There is no “fixed fee” (like £10 a month, £1 a day, etc.). The only “fee” is the interest on the balance.
Ah I see thank you, I even just checked on their website for an estimate of the fees I’d be paying until I get paid on Friday, they’re pretty minimal so that also clears up my worries a bit. Had to pay for private health care so I’m skint lol cheers for the help!