It would be fantastic to have a feature that when switched on, once in your overdraft, money will be automatically taken from a pot to avoid the overdraft - especially the one which rounds up money from card payments to avoid overdraft charges. I keep forgetting I have money in that auto round up pot and it saves overdrafts quite often- if I can remember to move it over! Having it done automatically should I go into overdraft would be great.
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Monzo canât be responsible for managing your credit commitments unfortunately.
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I never said they should be.
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This very much sounds like Monzo managing your overdraft commitment.
Or they could do what Starling do and count all money in non-interest earning Pots as your account balance.
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Not at all!
This is a longstanding community request to help Monzo users manage their money better.
Does Monzo need to provide bills pots? No, but itâs a helpful money management feature.
Does Monzo need to provide Trends? No, but itâs a helpful money management feature.
Does Monzo need to provide an overdraft pot? No⌠You get the idea.
Funds still come from the main account, monzo isnât dictating the direct debits paid from the account. So itâs not the same.
An oversight of your spending isnât managing anything financial, itâs a visualisation of where you are spending your money. Itâs not the same.
They do not, and should not, because it is a financial commitment, attached to a consumer credit agreement, and Monzo canât be responsible for moving money to pay that commitment, itâs down to the customer.
Again, they are no way in relation to the above.
If a customer canât manage their overdraft effectively, then maybe they should close the overdraft, and just let payments decline and know when enough was enough and they can move their own money.
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I get you might not like the idea, but letâs not put off others - like me - who think itâs great!
Indeed, not only is it totally acceptable but should be exactly the inventive sort of thing that Monzo should be thinking about.
This is about giving customers tools to manage their money their way - automation is not a bad thing.
It might even be commercially viable if you assume the pot earns no interest (netting Monzo a nice margin) or if itâs behind a pay wall.
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Monzo would earn a pretty penny more with people dipping into overdrafts even for a day.
Iâm all for automation and making lives easier, but there does also need to be accountability, it isnât really responsible to take out credit if people canât manage it appropriately themselves.
Replace overdraft with a ÂŁxx safety net buffer for those who do have a whoops moment, which is interest free and can be repaid weekly/monthly from a Pot, thatâs a little more responsible.
The buffer once entered, even 1p, doesnât allow any further payments until repaid. Thatâs the kind of innovation I can probably be onboard with. Can also only be used x amount of times a year. This pushes people to be more responsible.
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It really isnât that at all. Are you a Monzo employee?
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No; and wouldnât need to be to offer my viewpoints.
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I agree that if you have money in your account, it seems wrong to charge you for going into your overdraft when your own money could have been used instead. This could be implemented as being able to tag one pot as your designated âoverdraft bufferâ.
Starling wonât charge you if you have enough money in your spaces to cover your overdraft but they wonât move the required amount.
Itâs certainly an interesting concept, but you have 24 hours to move enough money to cover the overdraft, so if you have the money in a space, you can avoid getting charged.
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As already stated, they should just do it the Starling way. One of Monzoâs selling points is âchanging the way you bankâ so them giving you Pots but then making you move money from those Pots to cover an overdraft, even though that money is all in one account isnât really changing the way you bank.
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