Pots and Overdrafts

Ahh ok, I understand now.

I can’t remember what Monzo charge on overdrafts but preventing themselves from going into an overdraft for a few days surely can’t save them much can it? As they’re going to end up in there anyway.

Starling do it that way.
as if you have money in there spaces (pots for us) it counts for being overdrawn
so if you have -£50 in curent account but +£50 or more in spaces you do NOT pay fees

and one step further if you have say £100 in curent acc + £100 in saving spaces and go download a statment it will not show spaces movment in / out and show your balance as £200

in the app money is shown as moving in and out but basicly the money is allways in just one account.

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Brilliant, thank you. Ill be joinin starling then.

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i have been with Monzo forn 3 years but have just moved my Joint acc to them and although thay do not pay bills from spaces yet thay do tell you the day before a DD is coming out so i just move it myself

Personally (and take this in the light it’s intended), I’d focus more on better financial planning and management (regardless of which bank you’re with). Assuming the purchase was optional, it’d be worth getting into the mindset of saving for it rather than chasing instant gratification.

Even though your pots/spaces money is still ‘in your account’, it’s ring fenced for your bills, so really you should consider it ‘gone’, rather than treat it as a balance that can be spent/offset an overdraft. If pots/spaces didn’t exist, and you used a separate current account for this, it wouldn’t count towards offsetting your overdraft - so the same mindset should apply.

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I do agree with you on this as I do think of bills money as gone when I put it aside. with Starling, it’s harder to see spaces balance as well making it better. I do not personally use a OD but nice that that think this way plus I get interest on the total bal of current acc & spaces as well.
my statement is much cleaner (no multiple entries in from pot out to DD)

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Starling will lose you functionality.

You’ll have to move the money back yourself, which unless they try your account then pot, could actually make it worse if you forget to move it and the DD fails.

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Yes that is correct, but i can see DD day before and move it in time and say i do miss one thay try again same day like Monzo does. but the other benefits are worth it.
the use of the Post office is big for me. i can deposit up to £20,000 per year for free
{i wish :rofl:} not the £2,000 a year with Monzo + £1 per time - and just as useful for me take money out there too.

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I must admit that the way Starling handle their ‘spaces’ in terms of overdrafts is better than Monzo in my opinion.

I agree that functionality from a space (Starling) is not on Monzo scale (bill pot - I love) but with a little manually moving around it is possible.

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Given Monzo have savings pots and standard pots personally I think standard should count towards overdraft (means you can fully utilise a bills pot) and if you consciously move money into a ‘savings’ pot then you agree that is segregated and not counted towards overdrafts.

After bringing in bills pots I feel the overdraft element have been an oversight. Also plus and loan payments not being able to be paid from a bills pot seems like a missed requirement.

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You and me both. Starling do it the way you want. I think there was a long thread (which became a bit circular) about this when overdrafts first became available.

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You need to watch your language.

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I use Starling for the reasons the OP is asking, and my irregular overdraft is offset to nil interest. Different horses for different courses innit.

I don’t think Monzo do it the ‘wrong’ way, but Starling just fits the way I budget better.

(I was offsetting twenty years ago with my Intelligent Finance current account.)

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I’d say this is exactly what they are planning on doing with their move to Starling. To avoid fees while their overall account balance is positive; regardless of whether that balance is held in pots/spaces or not it’s all the one account.

I agree with the OPs view on overdraft charges and its only the fact that I’m lucky enough not to be at risk of Monzo’s charges that I haven’t moved to Starling in favour their approach to the fees.

I’m not against being charged for using an overdraft, but I do think it should only happen when the account as a whole is in the negative.

But this has been discussed to death before, and it’s unlikely to change.

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Leave Monzo and open Starling account. Sorted