Yes but you get special pricing don’t you?
I admit Handelsbanken only has about 200 branches so probably is not a good comparision with other high street banks. Drummonds (RBS Group) used to charge me probably twice that.
Yeah I pay around £7 for £1350 with HSBC. I’m not in it all month, but before payday I do reach the end of it sometimes, getting out of it slowly though
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an unknown lesser amount has to be better!
Depends when he first dips into it. As it could be a known £7 or an unknown (circa £7) ?
This is where generalised scenarios can make it less clear as everyone uses overdrafts in different ways. Slowly creeping amount, constant low amount, constant high amount.
Like I mentioned some time ago, if you are moving accounts to Monzo you ideally want to move with a clean slate and not bring overdraft debt with you. Otherwise you are guaranteed £15.50 per month until paid off.
This debate has been interesting, not least because Monzo do need people to feel comfortable using their overdrafts as this is one of the ways the company plans on making money.
I’d say the people on here saying they’re fine with a 50p charge are also highly unlikely to actually use the service.
It’s all well and good saying you’re fine with the price when you probably won’t actually use it. I’m keen to hear from people actively using the overdraft rather than all these hypotheticals.
For the record, I have an overdraft with Santander at 50p per day, a charge which I found so atrocious I never used it. I have a Starling Bank overdraft, also never used but I would use it if necessary given its reasonable pricing.
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I’m already using my (max £100) overdraft for a few days each month 
But to be honest, anecdotal examples of people who do / don’t use it aren’t going to give us a clear answer on whether this pricing is right or not. We’ll find out when everyone can access the overdrafts & users do or don’t actually start using them 
I’m going to be honest @alexs and say I suspect you use your overdraft because you actively want to support Monzo (as opposed to most people who make decisions purely based on financial incentive).
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It’s funny that you say that because I genuinely haven’t considered that at all. And obviously in the grand scheme of things, even if I was paying the full £15.50 a month, it wouldn’t make the slightest bit of difference to Monzo’s success.
I do have a different weird, irrational reason for using them though - I’d rather go into the overdraft than suffer the pain of withdrawing money from my ‘savings’ Pot 
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At the moment I wouldn’t mind either cost. I’m more interested in the tools and budgeting to avoid using the overdraft rather than the actual cost of it. I’d rather pay £15.50 if the tools helped me get the future charge down to say £13 the following month.
The difference between the two is a few coffees, or having a few cheaper lunches throughout the month. So as long as the costs aren’t ridiculous, the pricing is irrelevant. How the overdraft is used and how the customer manages thier money is far more important.
It takes me around 10 days after payday to hit overdraft, then as bills come out through the rest of the month I get further into it, so the cost for Monzo’s overdraft wouldn’t be much higher.
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To be honest the pricing on the OD is not that bad if you use it sparingly to get you through the last few days before payday - you could indeed get it cheaper at another bank but the hassle probably wouldn’t be worth it for this use case.
If you need the overdraft regularly for more than a few days you probably should not be doing that at all, and either reconsider your budgeting/spending or take out a proper loan.
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Interesting! I must be a skinflint because I would never actively choose a service that cost me more for no obvious reason.
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Emphasis mine.
It sounds like you missed this bit?
What are the obvious tools though? Instant notifications? A shiny spending graph? Am I missing something?
You appear spend just as much time in the Starling community as I used to here, I think you understand what extra tools both challengers offer & why they’re useful.
To be honest, if this is meant to be the main mechanism for Monzo turning a profit, then they don’t want people using it for one or two days a month.
Why not? If enough people do then that still works.
But something has to pay for Monzo to keep the lights on. I’m personally happy to “overpay” in this case if this means they don’t have to scam me with stupid fees like payments abroad, rejected direct debits/standing orders, etc.
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Not sure what that dig is about alexs? Or am I simply not allowed an opinion ?
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