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Unarranged overdrafts

If you don’t have an overdraft with us, your balance can still go below £0. This is called an unarranged overdraft.

We try to reject any payments that would take you below £0. But we can’t reject payments that happen offline, like Transport for London and in-flight payments, and work using a pre-authorisation like car hire or hotels.

Some transactions to Monzo can also take you into an unarranged overdraft including:

  • your monthly subscription to Monzo Plus, Monzo Premium or Monzo Max if you’re in your minimum term

  • if you’ve had an upfront refund for a dispute but we haven’t got enough evidence to uphold your claim and need to take the refund back

  • your first Monzo Flex payment if you've made a purchase on your virtual card and not chosen how many months you’d like to pay it over

We stopped charging interest for using an unarranged overdraft on 4 April 2024. We also don't charge you fees when you’re in an unarranged overdraft, or for payments we reject.

If you entered an unarranged overdraft between 1-3 April 2024, you may have accrued interest on those days, which will be charged on 1 May 2024.

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