Should Pots balances be counted for overdraft fee calculations?


The CEO replied with his view on how he saw it working (which is fine).

He didn’t address the t’s and c’s issue that people have.

If the t’s and c’s echo the policy, people can dislike the policy, but they can’t argue wording.


I don’t think the CEO of any business should be above being challenged.

I appreciate the time @tom took to make his response to us, particularly at the weekend, but I have some concerns about the content.

The community page on the Monzo website invites us all to “help us to build the bank you’ve always dreamed of” and that’s exactly what I’m trying to do.

(Gareth) #439

The T&Cs are overruled by the FCA’s rules. Monzo could write “We will charge you £1 million if you are in severe debt” but it would be easily contestable and won. Arguing about one screen saying a different figure of a balance as unfair on the other hand…


I think the point is…

For a bank that prides itself on communication and transparency, clearly both of these things are lacking here (on this one very specific issue).

The CEO can wade in with his opinion all he wants, but the issue surrounding the t’s and c’s was not put to bed (and was actually dismissed by Tom himself).

If you have to quote the FCA on a forum discussion, it is neither transparent or well communicated in my opinion.

(Stuart) #441

I don’t see how this part is relevant when we are talking about if overdrafts should be charged for while Monzo holds more of the customer’s money than the amount they are in their overdraft. The money is ring fenced for sure for your Tax Bill regardless of when you decide to apply the charges. The account holder is basically borrowing against themselves, not Monzo, and being charged for it.

And if we’re aiming for perspective on a 50p charge perhaps the bank should be asking themselves if they should be charging it in the first place.

I do love Monzo and actually am an advocate of the flat daily rate for an overdraft, for its simplicity, but only when the customer actually owes Monzo money.

(Alex Sherwood) #442

The account holder can choose to simply move that money that you’re suggesting that they’re ‘borrowing from’ into their main account, if they want to avoid the charges.

This topic has been discussed to death already.

As Monzo said in their latest blog post on overdrafts -

We’ve always been open that this is our initial pricing model for the overdraft. We believe it’s clear, simple and easy to understand. But, it’s likely we’ll improve it over time, based on feedback from our community and data on how customers are using overdrafts.

(Stuart) #443

If its that simple can Monzo not look at the bigger picture on the account holder’s behalf and realise that they are not actually in the red?

I know it has but I just wanted to clarify that my sentence before wasn’t an objection to the rate but when it’s applied.

(Alex Sherwood) #444

No because, as Tom explained, that’s bad UX.

(Stuart) #445

Well that’s a matter of opinion, the point of this thread is that other’s user experiences disagree


Saving money is great UX.

(Alex Sherwood) #447

Right & this is how design works. It’s subjective at first but unlike us, Monzo has the data to see whether this is actually a problem or not.

(Alex Sherwood) #448

I think you’re getting UX confused with something else.


Is the user experience of the product not UX?

We have Monzo saying that they are going to be able to automate so much stuff in people’s financial lives that will mean customers need to expend less effort in order to save money, and is this lauded as a great advance in banking UX (and I do not disagree).

Except in this case where friction is much better. For some reason.

(Ben Talbot) #450

This is exactly how I feel

(Gareth) #451

I refer back to post 353 just how many places people seem to be avoiding in order to claim that balance is “unclear”. Or look at the blog post launching pots - “Because you’ve set it aside for saving, money in your pots won’t be included in your available balance”. How would you make that clearer?

I mentioned the FCA that time because you said T&Cs can’t be argued. They can, if they are unfair. Every bank will tell you of your rights to complain. Then it goes on from there.


Simple question, is a pot a separate account?

FYI, like you, I’m playing devils advocate for the many people who have raised their legitame issues!

(Alex Sherwood) #453

Why do you think that matters?

(Alex Sherwood) #455

Ok well the team haven’t answered that question. But the answer is it doesn’t matter.

(Gareth) #456

No, but Tom confirmed it is ring fenced. I defined ring fence above, but as Monzo say in more simple terms - it means to set aside.


Reading the many posts in this thread… Cleatly it matters to some people.

Your opinion is not fact I’m afraid.