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. Your exact rate will depend on your credit score, and you can see what rate you’re on in your Monzo app.
We’ll always tell you the exact rate you’ll pay, and what that means in pounds, before you borrow from us.
Limits of up to £2,000
If you’re eligible you could have an overdraft limit up to £2,000. As always, this won’t apply to everyone and we’re very careful about only giving people what we’re confident they can safely afford to borrow.
You can change your limit and cancel your overdraft at any time from your app. If you want to to do so you’ll need to pay the amount you borrowed back, plus any interest.
No extra fees
We won’t charge you any extra fees for going into your overdraft, and we’ll always tell you when you go into it.
What are EAR and APR?
EAR stands for effective annual rate. This is equivalent to the rate of interest 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. So 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 anyway.
APR stands for annual percentage rate. It is calculated in the same way as the EAR plus any additional fees (like hidden or late fees) but we don’t charge these anyway so our EAR and APR are the same.
Representative APR You may see two types of interest, representative and personal. Representative APR is the rate that we currently offer more than half of those who apply for the product. The rate you’re actually offered is your personal APR – this is usually based on things like your credit score.
Variable means we have the right to change the rate, but we’ll always give you notice if we do.
You can use the calculator below to figure out how much you would pay depending on your personal rate.
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)