Is Monzo particularly conservative? I made the decision to switch from AIB to Monzo and had hoped to replicate my current account set up. In doing so, I wanted to set up an overdraft with Monzo and made the application, which Monzo declined. I queried this with support who were unable to share the reasons.
With AIB I have an overdraft facility (which I’ve dipped into maybe once in the last 3 years by a small amount), I have decent savings, low outgoings and decent income. I was therefore somewhat surprised that Monzo declined it. The agent on the chat said they couldn’t share any information as to why.
It has made me reevaluate the idea of trust: being able to depend on my bank. I’m considering proceeding ahead still, but I must say I’m a little annoyed given the lack of any explanation. Anyone else encountered similar issues?
Yes, concerned because they couldn’t provide any reason and concerned because I was hopeful that I could use Monzo as my main current account in the same way I did with my traditional bank. I’ll try that email. Thank you.
I’m a little surprised at the fees though, a quick cursory search shows that AIB (representative) has a better APR than this and it’s only marginally better than the other pillar banks.
Also the €2 monthly fee. Now TBF this is normal practice for the legacy banks here, but I’m surprised Monzo didn’t try to differentiate themselves from the legacy banks with an overdraft maintenance fee, especially that they are pushing the message of not having standard maintenance fees.
How does this compare with the UK? I bet they don’t charge a ‘maintenance’ fee for an overdraft there
Yes, it was the one on your screen I made the application for. The facility fee is 25 euro per year with AIB so it’s comparable in terms of the facility fee.
I don’t have a need for an overdraft so haven’t applied myself, but being that it’s very new perhaps it’s just a cautious approach from Monzo rather than your application specifically.
They may only be offering them out on a limited availability basis while getting started.
Edit: making an edit as my opening post was atrocious! I forgot to actually call out the issue I encountered! I was rejected for the overdraft, not the account.
Ah. Well that makes it better in some ways. Having your salary flow a few months into Monzo allows them to understand your spending and income and the offers will come.
Banks aren’t allowed to charge fees on overdrafts here and so the rate reflects that. The interest rate can be 19%, 29% or 39% depending on their assessment of you.
Depending on circumstances, better use a credit card to push expenses by a month and repay before the interest kicks in… This, of course, requires a good financial planning. Usually, a use of credit card for shopping helps to keep enough funds in the account for DD’s and SO’s.
