It isn’t a higher amount.
It’s the same amount. A fee for using the overdraft.
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I had tried to convince a friend that Monzo was the right solution for them but their retort was they could not see the point in opening a business account with Starling and a personal account with Monzo so they would rather they both be at the same bank. They asked if Monzo were planning to launch business accounts and my recollection was of Tom saying no but suggesting Tide. Have plans changed, and do Monzo intend to enter the business banking arena?
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They posted this a while back so maybe? 
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It is a significantly higher APR
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Personally I’d have preferred 18% APR up to a maximum of £0.5/day. This way it will be so much more easier to understand for vulnerable clients and at the same time pricing would be fair to all… But oh well…
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or up to 15% like fintech competitor Starling have?
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This would work excellently and makes it clearer than anything I could have come up with but they’ve already chosen an exceptionally expensive route and are masquerading around saying it’s a benefit and helpful for people.
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I prefer the flat fee as it feels more like a penalty charge for having to use the overdraft and therefore discourages me from using it.
I setup a Starling account and they gave me an overdraft, but the trouble with a % fee is that hardly anyone is going to sit down and calculate what they’re paying per month. In a way, it almost encourages you to use it more through the lack of transparency. Perhaps that’s the idea!
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Exactly this 
By the way, these (and more) were all discussions we had for a very long time before the decision was made, and the feedback process is constant. If folks overwhelmingly disagreed with it, we could re-evaluate.
We understand that there’s never going to be a system that works for everyone. Just like with the ATM fee discussion that we had. But this is what we’ve landed on, it’s a differentiator and most importantly it’s the most simple structure to understand.
Sometimes it’ll be cheaper than a competitor. Sometimes it won’t be. But it’ll never confuse anyone, it’s easy to understand and people will know that the absolutely maximum they’ll ever get charged, if they use it all the time, is £15.50 (in a 31 day month).
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157 posts were merged into an existing topic: Should a positive overall balance (including money in Pots) mean no overdraft charges?
4 posts were merged into an existing topic: Should a positive overall balance (including money in Pots) mean no overdraft charges?
26 posts were split to a new topic: Rabies
Switched away from Starling, which has completed today and at no point in the process have I had a single acknowledgement from them.
Poor, poor show from them and all it has done is reinforced my decision to leave them in the first place.
My experience using them reminds me of the type of situation where you’re promised the world from a sales team but once you’re signed up the service doesn’t live up to the expectation.
Communication is certainly not their strong point.
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I had the same. I switched my account out a few months ago and received no communication before, during or after the switch. No confirmation of closure. It’s awful.
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Starling now accept applications from US citizens resident in the UK.
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I’ve seen many users on their forum mention that Starling hasn’t marked their account as closed at credit agencies too, so I’d keep an eye out.
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I’ve closed my account with Starling a couple of days ago and the advisor confirmed the closure will be reported to CRAs. From experience this does take a few months.
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Starling are also the bank that will manage MasterCard Send payments when someone launches it in the UK - not really sure how this will work or what it means.
Seems Mastercard have some P2P platform up their sleeves that will work directly with banks like PayM does? Also noted that Starling released a statement saying they’re the only provider with ‘real-time’ direct access to the Faster Payments system, is Monzo running theirs through another bank for the time being or something?