HelpBudgeting, overdrafts and savingsHow do overdrafts at Monzo work?

How do overdrafts at Monzo work?

We decide if we can offer you an overdraft when you sign-up
When you open a Monzo current account we take a look at your credit file to help us decide whether we can lend to you. This is known as a 'soft search' and will show up on your credit report as a 'quotation search' and 'administration review'. Lenders can't see this information though, so it won't affect your chances of getting credit.

You can turn it on from your account tab
If we can offer you an overdraft, you can switch it on during the sign-up flow or turn it on later by tapping the link that says “Find out about overdrafts” in your Account tab.

And choose your own limit
You can choose how much overdraft you’d like with us within the amount we can offer you. You can change this amount at any time in your app, as well as switch it off entirely.

We offer a £20 free buffer then it costs 50p a day
You can go up to -£20 without any fees. If you're overdrawn by more than £20 then we then charge you 50p a day, no matter how much you're overdrawn. This means you'll never be charged more than £15.50 a month.

The fees will come out of your account on the 1st of every month
The 50p fee will be applied at midnight UTC on the day the payment settled. You'll see these fees accumulate in a feed item stuck to the top of your Home tab, but you'll only be charged the fees on the 1st day of the next month.

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