Wow. What a thread. I have to say, I agree with @anon44204028 and @nanos on this one.
That said, until somebody from 
comes in with an official statement about why they charge overdraft fees on an account that’s in the black, this thread is pointless.
@simonb do you not feel that this really is worth a review. It is quite clear from this thread that many people including myself don’t agree with pot balance not being taken into account.
There is a Q&A every week. Last week was the product team revenue manager. Everyone is free to ask a questions but nobody raised this. Here is one that was asked about lockable pots that included information about using a pot to offset the overdraft
(I’ve just taken screenshot as it was quicker)
As Monzo evolves (and grows into something bigger and better ) they should seriously consider revisiting their terms and conditions on a more frequent basis
We’re on version .4 in the last year or so. More frequent than quarterly? (Yes, bad average)
Personally, I do have an issue with this. It’s legally one account from my understanding so overdraft charges when it isn’t in overdraft do seem a bit unreasonable.
That said, it’s made very clear how it works, and there are plenty of chances to transfer money to cover it…
Yes and as things progress at a great rate of knots this should be at an even more frequent periodicity
Unfortunately a by product of rapid success
Clive H
I think Starling take the more innovative approach, as they essentially take into account your entire net worth with the bank in deciding whether or not it’s fair to charge you for running an overdraft.
Some of the arguments for Monzo’s method focus on why I would want an overdraft when I have savings (as I’m essentially trying to spend my savings more than once I’m using a free, offset overdraft). This is a badly–worded summary but hopefully you get the précis for “just transfer your pots money to avoid the 50p/day charge when you get a Monzo notification”.
The way I look at it, I use an overdraft as a facility to borrow for a small overspend one month, knowing I’ll be able to try to spend less the next to make up for it. All the while, I have fixed amounts going into various savings accounts for annual expenses and things I’m long–term saving for. Yes, I know I could forgo a month’s savings instead of running a brief overdraft, but this would mess up any 12 month plan for annual expenses (which, by the way, are usually cheaper than spreading the cost over a year with the provider) and is psychologically damaging to my savings goals (and Starling are clever here too as they call them Goals) so for me it makes sense to use the offset overdraft cleverly to assist with day–to–day budgeting one month to the next.
I’ve been a big fan of offsetting since the days of Intelligent Finance basically invented it for the masses and the system works well with my preferred method of overall life budgeting using the envelope system and lots of different accounts.
In short, Starling have provided an elegant and sophisticated overdraft, whereas Monzo have provided confusion with a tab which clearly shows your entire balance within the app as the account balance, including pots.
Definitely
Or you could top it back up to what it should be when you next get paid. i.e. borrow £50 from yourself.
The added friction may serve as an incentive not to repeat it, whereas the “free” overdraft has no consequence - until you need to empty your goal funds.
I’m guessing this is iOS, because Android is definitely not confusing.
On Android:-- Go to the Account tab.
(I really need to put some cash in 
)
So given the available balance is on 3 screens (Home, Account, Payments), and total balance is on 1 screen (notably not Home) and in smaller text - why would people get confused?
Bonus - when you add or withdraw from a pot, it’s available balance shown going down or up.
People still jumping through hoops to justify charging people in overall credit.
The silence from Monzo is deafening.
Hardly jumping through hoops when this is a Starling exclusive feature, and only if you have an overdraft. Goals act the same as pots if you don’t sign up for credit. Or should Starling let everyone go into the negative based on their goal balance?
You seem happy with them so I’m not sure why you’re trying so hard to convince Monzo to reduce what they have said will be the initial primary source of financing the accounts. Overdrafts -> Marketplace.
Because the T and C’s are false/misleading. Very simple.
No the confusion isn’t what I have in my account. It’s why I’m being charged for an overdraft when the ‘Account balance’ on the Account tab is everything including pots.
I’ve explained why, for me, I prefer to use the free overdraft rather than “borrow money from myself” because I find it easier to budget and sort in my head. (ie. my money in Goals is already accounted for, whereas my overdraft is fluid, a little extra for day-to-day.) I thought it might have been an interesting counterpoint to why I feel Starling have got their overdraft product perfected, as opposed to Monzo.
I’m an adult, I don’t need “friction” or any “incentive” to discourage me to repeat it. I have a mortgage, and a loan, and as a fully functioning adult, with a job, I know the consequences of messing with my budget.
Sometime I use an overdraft for a month, sometimes for a couple of months, but I don’t need there to be any ‘consequence’ to me having a temporary (and now, with Starling, free) overdraft. I don’t view an overdraft as a bad thing, but as a complex financial tool to help me live. Some folk may not be so financially competent, but I am, which is why I feel Starling have the better product.
There’s no need to defend Monzo to the hilt @garete, I’m a big fan in most other areas. I just happen to think Starling do overdrafts better, and fairer.
I’m mainly going “to the hilt” because people are saying they believe the t&c’s are breached, Monzo aren’t being clear etc. etc. Instead of just sticking to the argument that they prefer the Starling system and what Monzo should do as a revenue stream if suddenly lots of people made an overdraft pot.
Can’t wait to read the results of the legal case.
You may be functioning well as a human being, but I’m sure some people need a nudge, though I admit it’s not the best deterrent against overspending.
It is not a matter of preferring anyone’s system! It is a matter of charging overdraft charges when the account is not overdrawn! As for the system, we don’t care if it is a 50p charge or a percentage, we just care that we can be charged despite not being overdrawn! After all, the pots are not separate accounts, do not have account numbers, and therefore form part of the account balance.
Apparently the silence is only deafening to those who don’t use Monzo, or bank with Starling instead?
My bet is that Monzo staff have read this thread in its entirety and continue to do so. I’d imagine they are thinking how best to approach it and don’t want to post too soon until they have made a decision.
I trust Monzo when they say they read our posts and feedback here. Especially on popular threads.
After re reading this thread I can see how the T&C’s along with some definitions of balance are
causing disagreemnts. As you rightly say pots are still technically the same account. It needs to be clarified that overdraft fees will get charged on positive balances if those positive funds are ringfenced, at the point your card balance goes negative.
Unless Monzo want to change how it works and follow a starling approach. Personally I like it’s current form and I’ve explained why in one of my earlier posts.
I know it will upset you. But I use both. And I’ll continue to criticize where I see problems if that’s ok with you?