so use the money in your Monzo pot for what you want to buy with the offered overdraft ??? rather than using a 50p a day facility - or is that too simple ?
It really couldn’t get any simpler than saying “if your balance, clearly visible in the app, is below 0 (or - £20) we charge you.”
Everything else is a cash grab. And if any other bank would do it, we’d be at their throats!
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not at all
1 you have £500 in a goal ,
2 you are offered a £500 overdraft which is covered by your hard earned savings in your goal over a long period of savings to pay a bill
3 you’re not great at budgeting and like buying things - which is where apps like Starling and Monzo with budgeting facilities will really help you 
- which got you into debt previously
4 Starling keep telling you you’re so much into you’re overdraft but don’t worry because we aren’t charging you for it because you have money in your Goal to cover it
5 Fridge breaks need new fridge £500
6 Ive been spending freely because the money is covered with my goal - Thats actually to pay a bill in 2 weeks time
7 so Ive spent £500 because thats what I had in my goal and it was covering my overdraft and its free,
8 I have a bill for £500 for a fridge
9 the bill has come in
10 Im now in £1000 overdraft bingo
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If you have a £500 overdraft you can’t overdrawn by £1000 it is not possible
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you have to increase your overdraft to £1000 because you’ve been proliferate with your spending _ £500 “free” money and your fridge has just blown up costing £500 and your bill has come in which was £500 which you had at great effort saved up for
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there is no free money. You may spend £500 from a goal or from outside a goal, but you have spent the same £500 regardless of where it comes from. Having compartmentalized your money into goals or pots does not make you any more profligate, arguably less so as you are thinking about and planning your money in an astute way.
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maybe Ive misunderstood then - does Starling allow you to spend an extra £500 that you don’t have because its covered by your goal £500 and just keep reminding you its £500 of your overdraft , but don’t worry we aren’t charging you for it ???
the latter
so Starling stops you spending any money when your feed balance reaches zero but you have £500 in your goal ?
yes, you have to move it out of a goal to spend it
As @anon44204028 said - unless you have an agreed overdraft with them.
so now I am confused, if you have £500 in a goal earning 0.25% and if you have an agreed overdraft of £500 costing 15% ------ why would you want an overdraft ?
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This just gets weirder.
Originally it was “you won’t get charged for going into your overdraft of you’ve got the equivalent amount in a goal”
Now you have to move the money. Just like monzo.
Brilliant. Good job.
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You may have put £500 aside towards a holiday or car, which an expected or anticipated cost, whereas the overdraft is for emergencies or unexpected expense such as your car or boiler breaking down.
Also the interest may not be the current 15% offer. Some customers have 12%, 13% or 14% overdraft rate depending when they entered into an overdraft agreement.
I understand that -
so you have £500 in goal for a bill thats coming
you have an agreed overdraft of £500 which is “free” because you have £500 in a goal
you spend the £500 overdraft because you like buying things - rather than transferring money back into your account from your goal which is why you need an overdraft
you prefer to have a “free” overdraft and your money earns you .25%
suddenly -
your bill come in £500
your fridge breaks £500
and you’ve spent the “free” £500
£1000 overdraft from your free money ???
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It’s actually quite simple - you can only go below £0 in your main account (excluding goals) if you have an overdraft. If not, everything boumces. The only way in which Starling differs is at midnight, when the calculations take place, at which point goals are taken into account.
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When your net combined balance is £0, you don’t earn interest - so when calculating overdraft fees, Starling does available balance + goals + pending transaction sum, while Monzo only does available balance + pending transaction sum
You’re ignorant if you think everybody uses their overdraft for emergencies.
Many people are stuck in their overdraft, many students are in enormous overdrafts because of 0% interest, “free money”. Starling Goals counting against your overdraft 100% discourages saving.
If you have £500 In a goal you are earning interest, if you then use your £500 overdraft due to say having to buy a new fridge freezer then you use your previously unused overdraft and are now overdrawn by £500. £500 overdraft plus £500 goal equals zero balance, so no overdraft charge.
It can also be noted you can go a few days overdrawn and still not pay interest as interest up to £1 is waived every month.
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I agree , but you’re ignoring the possibility of the less financially astute amongst us being suckered into using free facilities to carry on their lifestyle spending and then suddenly be faced with unexpected bills which they are ill equipped to cover - people don’t seem to be able to accept that scenario
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