Is there a final position on overdrafts on current accounts in early phase and also the 'normal ’ post testing phase? I have my new account But curious and don’t want to be credit checked by clicking +overdraft inapp just to satisfy my curiosity
The details about the overdrafts haven’t been announced yet
Don’t worry, that doesn’t do anything yet
& having seen the signup flow, due to a leak, I can promise you that Monzo does make you think before you accept their overdrafts
I would swear during the current account signup procedure I saw the overdraft interest rate on one of the pages. The only reason I’m hesitant is that absolutely no one else on here has mentioned it.
You did but I checked with one of the team afterwards & that’s not necessarily the rate that’ll be offered for the overdrafts - that figure’s a placeholder.
Which is exactly why I didn’t post it here. Interestingly, before you replied @alexs I had a PM from someone who also saw a rate, but we had different figures. I was intrigued if Monzo was considering personalised rates, but I’m also very willing to believe my memory had played tricks on me.
We hope to be testing out overdrafts in a few weeks time with members of the public who are on the Current Account Preview. Still doing some staff testing at the moment
Sounds good :). Though I hope not to use it, it’d be good to have a buffer just in case with the testing account.
It will need to be ready from when the Current Account is launched to the wider public as if they have to chose between Monzo and Starling and Starling offer an overdraft and Monzo don’t then Starling will become their main account and Monzo relegated to second place perhaps just for their holidays.
Overdrafts to launch in 2-3 days according to @tom tonight
Again, they are in internal trial right now. It may take a little longer to come out to the public.
Anyone know where these are going to be available to test or use?
Edit - turns out there’s already a dedicated topic for the current account overdrafts, which includes the latest update from Tom so I’ve moved your post here
@alexs Which post are you referring to? I can’t seem to find it!
Apologies for the confusion, I was referring to this topic
@jonas you also mentioned some more details about overdrafts. Is this information on the forum somewhere?
I was confused as you didn’t mention any interest being applicable and not sure if a daily fee was in lieu of interest or as well as interest.
No it’s not. Judging by the way that Monzo’s handled this sort of thing in the past, I’m sure there will be a blog post to explain how the overdrafts will work in detail, once they’re available to users.
There won’t be any interest in addition to the fee. There is a little bit of information in the forum in discussions about an event we had at our offices a few months back, but I agree we could do more. I’ll pass this on to the team.
One thing to keep in mind is that just like everything else, what we are doing with overdrafts is an experiment, so nothing is set in stone, yet.
What I heard was that you’re going with the 50p/day model for the overdrafts?
Just to reiterate that I think this is a really awful idea… making it essentially free to get further into debt isn’t a path Monzo should be going down (although I understand that it’s an experiment).