Use overdrafts within pots

Hi, I think overdrafts should be usable within pots. It makes no sense to reject a payment when the account has an overdraft facility.

This is mentioned a lot, Monzo seemingly have no interest in changing it.

Isn’t this a bit different? That topic is saying create a pot you can use as an overdraft. I might have misread @simonlawton, but I thought he was asking whether you can go overdrawn in a pot (e.g. your pot balance is £5, you have an account overdraft of £100 but you then use a virtual card to spend £10 - right now that would, I think, be rejected, rather than take the pot into the overdraft).

@simonlawton what did you mean?!

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Oh so you wouldn’t reject a virtual card if you had money in the account? So the inverse?


It sounds like he is saying that if you have a £100 overdraft and no money in a pot, but a payment for, say £10 comes out, then rather than rejecting the payment, the £10 comes from the overdraft. possibly by automatically moving £10 into the pot, reducing the overdraft from £100 to £90

Pots are for budgeting. If you’re over spending your budget you need to reconsider.

If you don’t want a payment to decline you need to use your main card not your pot card.

Simple really, otherwise totally defeats the object of pots and you’re better off using your main card.

You could utilize pots better and add more than you anticipate, meaning you have a buffer if you exceed your predicted pot balance.

@MichaelDavidson Yes that’s right. I appreciate pots are for budgeting, however I have all my bills paid directly from a bills pot. If a bill was unexpected more than anticipated and you have an overdraft. Just think it should be able to use it from the pot rather than reject the payment for the sake of maybe a few pound.

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I actually happen to agree in this context. When I did have a bills pot I’d always have a float of £100 over what was needed for this exact reason.

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I agree; I think everyone would agree that ports are to budget, but not all direct debits are fixed; having your overdraft in play for the unexpected increase would be a great feature. It would save time, hassle and potential fines for missed payments. Having the over amount transferred from the overdraft (main account) to the pot automatically to cover the shortfall could make a big difference to some people.

If your direct debit fails from your bills pot, it will be taken from your account.

You’re also notified if any direct debits change.

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You also get the option to retry a failed direct debit before a certain time. So you can avoid fees :slight_smile:

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It’s not just direct debits. I have Monzo premium so a card linked to a pot for other bills.

Whether a direct debit or not, it still takes it from your main balance if there isn’t enough in the pot doesn’t it?

No, might for standing orders but not card payments

Ah yes, I’ve just read about them.

They were created to ringfence your money so makes sense that they get declined:

An overdraft for cards connected to pots kind of makes sense… I think :thinking: But also goes against the reason they were created too :person_shrugging:

Would be good if you could allocate a certain portion of your overdraft to different pots though. That way you could still have the intended segregation plus some wiggle room.

e.g. Bills pot can use up to £100 of my overdraft but my RSPCA pot with linked virtual card can’t go into the overdraft at all

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