IFTTT applets (such as 1p saving) and round-ups to work while in overdraft

(Alex) #1

Hi. Wasn’t sure if this is pots related or overdraft tbh so pls merge if this should be somewhere else.

Given that overdraft costs are fixed at 50p per day then I don’t see why I shouldn’t be able to add to pots while I’m in overdraft. It would also be nice if my 1p challenge and coin jar round ups were still active.

I assume there’s some logic about keeping as much as poss out of pots once you’re in overdraft but given the fixed cost, it’s irrelevant once I’m in there.

Anyone got any thoughts or answers? As it stands, it’s just annoying as I have to count up what would’ve been rounded up once I get out of overdraft and manually send it over to the pots so I can keep up with the savings challenges.

Edit: original post was regarding being able to add into pots at all while in overdraft. This now works. So…niche-r but related request now.

1 Like
(Sarcasm is the finest form of wit.) #2

Because overdrafts aren’t ‘YOUR’ money?

6 Likes
(MikeF) #3

I imagine any bank that authorises lending people money for saving purposes would be vilified in the ‘court of public opinion’.

While I get the point about the charges, putting yourself deeper in debt than necessary means it could take longer to pay your way out of it meaning your overdraft could last a day or longer so you could end up paying more.

It’s all potentially theoretical nonsense when we’re talking pennies, of course, but it is still ‘bad practice’ so I can well understand why it’s not allowed.

2 Likes
((╯°□°)╯︵ ┻━┻) #4

Understatement of the century. Just look at the loans thread :rofl: :wink:

1 Like
(MikeF) #5

I was thinking of the share purchase/overdraft fuss.

((╯°□°)╯︵ ┻━┻) #6

Yeah and that too!

Some context for the OP. Monzo did a very small scale trial where it offered a loan to those who had a pot with a savings goal for a holiday. The idea behind it was to offer them a loan to meet their goal sooner. Uproar ensued.

I can see the same principles applying here. Lending money to meet savings challenges is similar and will therefore be deemed unethical.

#7

Not quite the same but I’m pretty sure I’ve not been able to schedule a deposit into a pot when my balance was 0 in the last month or two.

(Alex) #8

I seeeeee.

Both in response to you and others, fair enough I guess. That does all make sense. And I suppose it wouldn’t make much sense to delineate between pennies and pounds as said above.

I still find it a bit annoying but all makes sense enough. Thanks for explaining the previous uproar etc.

2 Likes
#9

A while back, with my old legacy bank before switching to Monzo, I was forever in my overdraft. I would get paid, and still be overdrawn. I was still able to transfer into savings though :man_shrugging: Not saying it’s right (or wrong), just pointing it out.

1 Like
(Alex) #10

Yeah actually. I’m in my HSBC one and can obviously do whatever with it.

Hmmmm. I kinda take back my former agreement somewhat. If I can spend money and transfer it to people I don’t see why I shouldn’t be able to put it in pots.

(Nathan Steer) #11

There’s a difference between lending you money to be able to buy things, and lending you money to pop into savings that will earn you no interest, and therefore only results in the risk of you getting back into overdraft again sooner in the next month.

I might agree with you if putting that money into pots was going to earn you interest, since then you are at least having the cost of borrowing that money now mitigated slightly by earning a bit of interest back later.

(Alex) #12

A difference in where the money’s going. None in both taking me further into overdraft.

And I’m not seeing it as purely savings, but as organisation. Lots of people move money into pots to keep it separate and safe for DDs etc. It’s a very helpful part of them. I don’t see why that should be taken away when you’re in overdraft.

Something like a ‘nudge’ to move money out if you had enough to bring you into positive seems more appropriate, rather than a lock on you being able to organise money and participate in rounding up etc.

(Sarcasm is the finest form of wit.) #13

Sorry, I can’t get away from the simple notion that an Overdraft isn’t YOUR money.

Maybe the big banks do it, and can afford to do it, and have always done it so they can’t change that now.

Just my opinion, for me an overdraft (when I’ve had one) was the ultimate last ditch thing I’d do. And the first thing I did when i got any more money was reduce it/remove it.

I know there is a charge to have an overdraft but it is not a loan, you are literally over drawn, you are drawing over your abilities. Why should you then be able to put that wherever you choose? I’m not good with money but this just seems wrong?

Not having a go at you Alex, I know it can be hard and this probably feels like you are being penalised in some way. And as you say, if it’s organisation you want this for, then I think a nudge isn’t enough, a lock is a better solution to help you retain that organisation, not fudge your way around it?? (again, not having a go, just thinking out loud). Hope you can work around this!

1 Like
(Alex) #14

Haha no offence taken.

I see what you’re saying on a level. But if you’re allowed to pay for things with it and to transfer it to people, I don’t see why pots is so different?

And it isn’t ‘my’ money in the same sense a positive balance is but I am paying for the use of it. So I think it still is tbh?

I haven’t had a positive balance since I went into my student overdraft with HSBC. I’ve simply not had a salary which has allowed me to pay off 2k of debt. I go up and I go down but I’ve never truly stopped using it. Rn just having a bad few months and thank god for the Monzo one. But I very much consider it my money to use. If I’m paying for it, whether percentage wise at HSBC or daily with Monzo, then I don’t see why some transactions are allowed but others aren’t. That’s all.

I’m not imagining this’ll change any time soon given I’ve never even seen it mentioned in the overdraft agreement or any of Monzo’s writing on the subject but just wanted to voice I didn’t think it made much sense.

1 Like
(Sarcasm is the finest form of wit.) #15

Debt is a bugger, isn’t it. I hope you find your way out of that soon.

This is definitely one of those things, I can see your point here too!

2 Likes
#16

Logically you signed a contact with Monzo and you should be able to use overdraft as you want?!

They charge you for their services anyway… Strange

1 Like
(Jamie 🏳️‍🌈) #17

It isn’t your money to use, whether you consider it so or not. It’s the bank’s. You pay the bank to use its money when you are in overdraft. You do so because you have no money of your own left. You don’t get the right to ringfence Monzo’s money in a Pot, because Monzo don’t want to charge you for pointlessly ringfencing it. Ringfencing it in a Pot has no material benefit to you, and Monzo doesn’t want to charge you for the privilege.

2 Likes
(Alex) #18

It has as much benefit as pots do at any point in time. If you don’t think pots serve a purpose, fine, but their existence suggests they clearly do.

Anyway, I feel I’ve said everything relevant to my point here. Clearly we don’t all agree. Glad I’ve voiced it at least.

(Nick Slade) #19

I also think it is worth pointing out, that with other Banks when you add money (overdraft or loan money) into a savings account, it is a separate account with a separate account number.

A pot is still within your current account, its just displaying differently in the UI of the app.

Not sure if this means you should be able to transfer or not, just adding some more info!

(Jamie 🏳️‍🌈) #20

You miss the point. It wasn’t about the Pots themselves, clearly.

My point was, it serves no purpose for you or Monzo for it to allow you (and subsequently charge you) to put its money into your Pots. Monzo obviously agrees with me that you should only put your money into your Pots.

2 Likes