Overdrafts

Simple, easy to understand overdrafts. Totally optional, with no hidden fees.

Simple

We want to build overdrafts differently, so they're easy to understand, for everyone.

There's a charge of 50p for every day your account is overdrawn by more than £20.

And no other fees.

No unexpected charges

We'll send you notifications if upcoming payments will take you into your overdraft, and let you know as soon as you enter it.

You can decide whether to use your overdraft or add money from elsewhere.

So you're always in control of your money.

Help staying within your limit

We’ll reject payments that would take you over your limit or into an overdraft if you don't have one switched on. For free.

When we can't reject payments for delayed transactions (like hotel bills or TfL payments), we’ll tell you and give you at least until midnight that day to clear them.

A £20 free buffer

We've built a £20 free buffer into everyone's account, so we won’t charge you for only going a few pounds overdrawn.

If you do go overdrawn by more than £20, you'll still have until midnight to add money to your account if you don't want to be charged.

How to get an overdraft

Go to the Account tab in your Monzo app and tap Find Out More About Overdrafts

Make sure you read and understand all the information

All done! Start using your overdraft immediately, or keep it as a backup when you need it

Common questions

I don't want an overdraft!

Overdrafts are totally optional. You’ll only have one if you actively switch it on in your app.

If you don’t want an overdraft, you don’t need to do anything. We won’t make any credit checks that affect your credit score, and you can keep using Monzo like you always have: if your account is empty, we’ll reject payments for free.

The only exceptions are ‘offline’ payments, like those you make to TfL. We aren’t able to reject these, but we'll tell you if they take your balance below zero. You'll have until midnight to add money to your account, so you can avoid charges or any impact on your credit score.

Does everyone get an overdraft?

No. In order to use a Monzo overdraft, you need to meet our eligiblity criteria. This is based on our own data, as well as information from our credit reference agency, Callcredit. We're being relatively conservative when working out who's eligible, and are committed to lending responsibly.

Will opening an overdraft affect my credit score?

When you sign up for Monzo, we do a 'soft' credit check on you. This won't affect your credit score, unless you sign up for multiple new bank accounts at the same time.

If you decide to switch on the overdraft, we’ll carry out a full credit check and tell the credit reference agencies that you now have an overdraft. Like any other overdraft, this is likely to affect your credit score.

Can I cancel my overdraft?

Yes! You can cancel your overdraft by setting your limit to £0.