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Arranged overdrafts can be ideal if you need to borrow a little extra money to tide you over every now and then.

Overdrafts are designed for short term borrowing, and they’ll cost you less if you pay them back quickly.

UK residents. 18+ only. Eligibility criteria and Ts&Cs apply.

Arranged and unarranged overdrafts

When you switch on an overdraft with Monzo that's called an arranged overdraft. If you go over your arranged overdraft limit or you don't have an arranged overdraft we'll reject payments (for free), but there are some times when we can't reject payments. We've explained how it works below:

If you go over your agreed overdraft limit

We’ll reject any payments that take you over your limit, and you won’t be able to take cash out. The only exceptions are ‘offline’ payments, like those you make to TfL. We can’t reject these, so you’ll go into an unarranged overdraft, but we'll tell you as soon as this happens. You should add money to your account as soon as possible, as it could impact your credit score (which might make it harder for you to borrowing in future).

If you don’t have an arranged overdraft

If your account is empty, we’ll reject payments unless they’re payments as described above. We’ll send you a notification as soon as this happens.

If you do become overdrawn and don’t have an arranged overdraft, you should repay the money as soon as you can, as it could impact your credit score. Further details can be found here.

Overdraft cost calculator




If you borrowed £0 for 1 day
from your arranged overdraft


Total cost