Simple is closing; All Hail Monzo 🙌 - What should I know?

They’re quite common across banks with a physical presence. Especially the overdraft and insufficient funds fees. Some will take it farther; for example, Santander charges $35 as an initial overdraft fee and a further $35 “sustained overdraft” fee on US accounts if you stay in overdraft for more than five business days (imagine if they tried that in the UK). One of the biggest selling points of challenger banks like Simple was that they wouldn’t charge you such onerous fees for overdrafting your account or if they had to refuse an ACH debit for insufficient funds.

That being said, the above is for what would be called “unarranged” overdraft in the UK. Some banks in the US also offer arranged overdraft facilities but unlike a lot of UK overdraft facilities, charge both a fixed fee and interest. For example, my account at BMO-Harris (regional bank in the Midwest) has a $1000 overdraft facility that charges 18% APR and $10 each time I need to dip into it. I also have a $500 overdraft facility at a local credit union that charges 12% APR and $4 per use. And cheaper still than both of those if the need arises and I know in advance is to withdraw cash from my Barclaycard Ring, at 8% APR and $1 cash advance fee (it’s also a backup source of funds when I travel; I keep it and a couple other credit cards tucked away in my luggage in case my wallet is stolen).

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