Following a discussion I started here: Pre-ordering authorising the full amount months in advance I figured I’d bring this into the main overdraft feedback thread for more focused thoughts (and to bring more attention to it).
Right now, the Monzo app says my balance is -£37.41. I am not getting any charges. The reason for this, it turns out, is because some of the transactions I have are pending, not finalised. One on CDJapan which isn’t due to finalise for another month, and another on Amazon Japan which is finalising today or tomorrow I think. If I take off both these orders, I’m under the £20 no charges limit.
Because of this, I have no idea when I’ll start paying overdraft charges, and have to keep calculating how much I really have left in my account before I start paying for my overdraft.
I get the clarity of having everything come off balances immediately, but when it comes to overdrafts, this isn’t ideal at all, because the balance figure is complete rubbish.
I’m not sure what to suggest to get around this without reverting back to traditional bank methods of “available” balance, etc, but there definitely needs to be a separate figure somewhere to show real balance when approaching the charges threshold of an overdraft.
In the short term, there should be a note in the app remarking that, by law, pending transactions are not taken into account when calculating overdrafts.