I signed up for a Starling account. Why not? Grass might sometimes be greener elsewhere but you’ll never know if you don’t check.
I was offered an overdraft of £2500. It struck me from the start that it looked rather inexpensive compered to Monzo’s pricing.
I played with the slider in the Starling app for a bit and here is what I got:
Now, I have two words on that. It is time to change the way Monzo calculates their overdraft charges. In the name of simplicity, in my opinion, most users will be heavily overcharged. How many users will actually be overdrawn by £1300 to warrant 50p a day charge? My gut feeling is most will be overdrawn by £200, £300, maybe £500 max but will be charged multiple of what they should be paying.
After reading this, I am honestly surprised in most use cases, users would be overdrawn by around £1300 so 50p charge simplifies charges for them.
Monzo is doing good things on ethical and transparency issues. But their overdraft charges are just too high and need to be brought down to fair and honest levels.