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Monzo Overdrafts

Arranged overdrafts are a safety net for unplanned surprises. They’re designed for short term borrowing and they’ll cost less if you pay them back quickly.

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

An overdraft you’re in control of

19%, 29% or 39% EAR (variable)

As a representative example, if you use an arranged overdraft of £1,200 for 30 days, with 39.0% EAR/APR (variable), it would cost you £32.94. 39% APR representative (variable).

Your exact rate will depend on your credit score, and you can see what rate you’re on in your Monzo app.

Limits of up to £2,000

If you’re eligible you could have an overdraft limit up to £2,000. This limit won’t apply to everyone – we consider what people can safely afford to borrow.

You can change your limit and cancel your overdraft any time on the Monzo app. To do that, you’ll need to pay back the amount you owe, plus any interest.

Know how much you’ll pay

We won’t charge you any extra fees for going into your overdraft, and we’ll always let you know when you go into it.

We’ll always tell you the exact rate you’ll pay, and what that means in pounds, before you borrow from us.

How does our overdraft compare?

Our representative APR is 39.0% APR (variable). You can use the APR to compare the cost of different credit products.

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), and you won’t be able to take cash out. But, sometimes we can't reject payments.

Offline payments – We can’t reject ‘offline’ payments, like those you make on a plane, so you’ll go into an unarranged overdraft. 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 borrow in future). Further details can be found here.

Understanding your rates


EAR stands for effective annual rate. It’s equivalent to the interest rate you'll pay if you're overdrawn for a year. You'll pay interest on the amount you're overdrawn by, and on the interest that builds up from being overdrawn. You'll pay less if you regularly pay off your overdraft. EAR doesn’t include other fees, like hidden or late fees – but we don’t charge these.

APR (variable)

APR stands for annual percentage rate. It’s calculated the same way as EAR, plus additional fees (like hidden or late fees). We don’t charge these so our EAR and APR are the same.

Variable means we have the right to change the rate, but we’ll always give you notice if we do.

Representative APR

You may see two types of interest, representative and personal. Representative APR is the rate that we currently offer more than 51% of people who apply. The rate you’re actually offered is your personal APR – this is usually based on things like your credit score.

You can use the calculator below to figure out how much you would pay depending on your personal rate.

Overdraft cost calculator




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


Total cost

Check if you're eligible for an overdraft

You can use this eligibility checker to see if you’re likely to get an overdraft with us. Please note a few things:

  • Using this checker doesn’t guarantee you’ll get an overdraft with us

  • The outcome is based solely on the accuracy on the information you give us

  • Using the checker won't affect your credit file in any way

  • Any overdraft offered by Monzo will depend on a full eligibility assessment (this will happen when you apply for an overdraft in our app)

Personal Questions

Have you had a bank account with an overdraft or a credit card in the UK for more than a year?

Have you got a county court judgement or defaulted on some borrowing in the past 6 years?

Have you missed any payments on borrowing in the last 2 years?

Existing Debt

How much would you like your overdraft limit to be?

Remember: these results are not
definite, this is just a guide