If you don’t have an overdraft with us, your balance can still go into negative. This is called an "unarranged" overdraft.
We try to reject any payments that would take you overdrawn. But we can’t reject all payments because some of them happen ‘offline’ (for example TfL payments, or in-flight purchases).
Some transactions to Monzo can also take you into an unarranged overdraft, such as:
your first Monzo Flex instalment if you've made a purchase on your virtual card and not selected a plan
We’ll send you a notification and you'll see the fee calculator stick to the top of your feed in your Home tab. You’ll have until at least midnight that day to add some money.
If you don’t pay it back in time, we’ll charge you interest at 39% EAR. We collect those fees from your account on the 1st of every month. The monthly cap on unarranged overdraft charges for Monzo personal current account is £15.50.
This cap covers any interest for going over/past your arranged overdraft limit. We don’t charge you any additional fees for any additional payments that we can’t reject when you are in an unarranged overdraft. We also don’t charge you any fees for payments we do reject.
Monthly cap on unarranged overdraft charges
Each current account will set a monthly maximum charge for:
going overdrawn when you have not arranged an overdraft; or
going over/past your arranged overdraft limit (if you have one).
This cap covers any:
interest and fees for going over/past your arranged overdraft limit;
fees for each payment your bank allows despite lack of funds; and
fees for each payment your bank refuses due to lack of funds.