Student Overdraft Facility - No Charge

I must admit I’ve always been savvier with my money than my friends, so I can see some people just not worrying about it and letting it become a problem.

And I’m very lucky to have had the fall back of the Bank of Mum and Dad if it had become problematic.


I’ll admit I used my overdraft as a student with less than proper reasons… :beer::tada:

But had the mindset that I’d rather put myself in 0% debt until i am 28 than have to sit in and manage my money whilst being depressed and stressed.

Necessary evil to enjoy my student life and have zero (or should i say 0%) regrets from it :slight_smile:

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Also a student and know many people are in their overdrafts even by the end of the first term.

Whilst I don’t think that Monzo should offer an interest free overdraft, I feel getting more students on board should be an aim.
I know a few people who have Monzo cards at uni and even without the overdraft (which baring in mind, the legacy overdraft can still be used alongside a monzo account) the budgeting tools make a big difference to being able to keep track of finances.

I would love to see an advertising campaign targeted at university students and highlighting the benefits of Monzo - in the future the students that join monzo may do so for life :money_with_wings:


Its a culture thing that needs to be changed. It becomes banter to say “oh yeah I’m already into my overdraft but it doesn’t matter because of X” . Until the culture change comes through that its not okay go to into your overdraft massively( a couple of pounds is okay as long as you pay it off). Nothing will change until the culture changes and this is compounded with massively reduced maintenance loans.Its hard to be a student without going into your overdraft



My daughter appears to be an exception in that she hates her overdraft with a passion. As a result she does everything possible to avoid using it. While I fully support the sentiment, as an interest free tool I have no problem with her using it for a week or two to tide her over something unforeseen. We are both clear, however, that if at all possible, she needs to see a clear way out of it before going into it.

I would say she lives very frugally as a result but if that means coming out of student life with a more limited debt then I’m all in favour.


I agree with this, I managed to get 3 student overdrafts at £3k each! Spent most of it on pizza and alcohol - absolutely nothing - spent 5 years paying it off after graduating, picking up a default on the way.

If Monzo was about when I was at uni, I’m sure I wouldn’t of got in such a mess!

Offering a student account with no overdraft or loan facilities would probably be the way forward…


Thank You for everyone’s comments. Some very interesting opinions to take on board.


Conventional bank accounts are a maze when it comes to student budgeting as there’s no reminders that say ‘actually, you’re spending too much here’ like with the summary, and with an interest free overdraft this gets compounded even further as approaching £0 is no longer seen to be an issue.

I feel that especially with the way student loans come into bank accounts (only a couple of times a semester) that a Monzo student account even without an overdraft could succeed purely for this reason

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Tom mentioned that he is interested in finding out the reasoning as to why some customers do not switch their accounts from international banks to Monzo and my personal reason, as I am sure is the same as many student Monzo customers is because we have overdraft facilities that we use at the international banks that offer 0% interest and thus if Monzo was to offer this scheme to students only then I am sure many students would consider switching and making Monzo their current account.


This gradual year-on-year decrease in interest free overdraft is common to every student account I’ve come across.

It doesn’t make sense for banks to offer the incentive of a student free overdraft to convince students to switch, and hopefully stay for life, and then cripple them with debt which would probably cause them to move accounts as soon as they’ve paid the debt off.


Students should become more financially aware and with a transparent company such as Monzo there is no better place to borrow Money in the future. People know what they are signing up for.

Thank you for you’re comment.

I wouldn’t ever go into overdraft, and I have never opened overdraft on any account. Too much potential to screw up. I only spend the money I have, and if I don’t have enough, I cut out the unnecessary expenses.

That’d great you have no need to use this service offered however, for the majority of students across the UK it Is very helpful for short - term finance required for unexpected debts. :slight_smile:

Why should a bank fund a student’s lifestyle for free?

Monzo shouldn’t do this at all.

I just can’t respond without offending so I won’t.

However if you really think that students as a rule of thumb use their overdraft for items such as you mention and in a way you mention then with the greatest of respect you are naive at best.


I have to say that I think students being offered credit without any real levels of income able to service debt is highly irresponsible in my humble opinion.

If a student cannot afford to go to university then I’m afraid that’s a situation for them not the banks to sort out.

Having said that I do feel for students as it’s tough financially. I’ve seen it first hand.

Though I also think terms should be based on subject studied etc.

For example law, medicine etc. They are valid academic attainments which are useful and will provide a stable future.

Degrees in nonsense subjects I do not agree with personally and I have a lot of friends who have studied subjects, left uni and will not earn anytime soon enough to return their student debt. In any case we are going off topic.

Ultimately lending money interest free at a crucial stage in a banks growth probably isn’t a sound financial move for the bank.


High risk lending I agree banks shouldn’t do. Having said that they mitigate risk with huge APR!

Your point about student loans is what I meant. Hardly anyone I know that went to uni has even started paying their loan back.

I also don’t buy the higher earning unless it’s a sensible subject as mentioned above.

Most of the people I know with degrees are very qualified in that given subject but in any other situation couldn’t butter a slice of toast.

Have to say my personal views on our university system are probably not what you would ever agree with. A degree should be in a subject that will be essential in the career of that person. Lawyers, doctors, dentists, vets, economists, accountants etc.

A degree in certain things is an excuse for someone with no direction to sit around for three years smoking and drinking using a loan they will likely never repay because their chosen degree will never yield them a career that earns above the threshold.

Anyway I sound like scrooge.


Oh and I’m not brushing over your point if it’s only £200 for a couple of days then I’m sure a £3k overdraft is overkill and mum and dad could help knowing they will get it back that fast.

Don’t you think it’s a slippery slope to start borrowing money, when you have savings that would cover it?

Appreciate it’s 0%, so doesn’t actually make any financial losses, but if students get into that mentality, it likely hurts them further down the line when their overdraft isn’t interest free.

Personally, the first £1000 of savings should be people’s emergency overdraft IMO!


I have one of those degrees and I never smoked in my life. All the people I know worked hard, and built up skills at university that can be applied across the board in their everyday lives. Not a single person I know from university is on anything but an above-average salary in a specific field.

I work for a university, and I can tell you now that in most cases, the degree is irrelevant; it’s the skills you learn while getting the degree that will set you up in life. Whether you study Film, Politics, Maths or Law, you have to learn the same skills to pass - the only difference is the specific knowledge.

I appreciate this is just about student overdrafts but I can’t just sit by while you make statements like that, reminiscent of the Daily Mail style view on the world.