Overdrafts with Monzo

We decide if we can offer you an overdraft when you sign up

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

You can turn overdrafts on in the app

If we can offer you an overdraft, you can switch it on when you sign up. Or you can apply to turn it on later.

Choose your own limit

You can choose how much overdraft you’d like within the amount we can offer you. You can change this amount at any time in the app, or switch it off entirely.

Charges for using your overdraft When using an arranged overdraft we charge you interest on the amount you’re overdrawn. The effective annual rate (EAR) that we offer you will depend on your credit score and will be 19%, 29% or 39%. Learn more about fees.

You can use our calculator to find out how much you'll pay.

When is interest charged? The interest will come out of your account on the first of every month. We’ll apply the interest at midnight UTC on the day the payment settles.

UTC stands for Coordinated Universal Time. It’s the standard used to align time around the world. It’s the same as GMT (Greenwich Mean Time) but it ignores the clocks going forward in the UK every spring.

You'll see the interest build up in a feed item stuck to the top of your Home tab.You'll only be charged on the first of the next month.