Overdrafts with Monzo

We decide if we can offer you an overdraft when you sign up

When you open a Monzo current account we take a look at your credit file to help us decide whether we can lend to you. This is known as a 'soft search' and will show up on your credit report as a 'quotation search' and 'administration review'. Lenders can't see this information, so it won't affect your chances of getting credit.

You can turn overdrafts on in the app

If we can offer you an overdraft, you can switch it on when you sign up. Or you can follow these steps to turn it on later:

• Tap the Home icon in the menu bar
• Tap on your profile picture
• Scroll down to Your personal account
• Tap Learn about overdrafts (if you’re not eligible), Set up an overdraft (if you’re eligible), and Manage your overdraft (if you already have one)

Choose your own limit

You can choose how much overdraft you’d like within the amount we can offer you. You can change this amount at any time in the app, or switch it off entirely.

Fees for using your overdraft
When using an arranged overdraft we charge you interest on the amount you are overdrawn. The EAR (effective annual rate) that we offer you will depend on your TransUnion credit score, and will be 19%, 29% or 39%. Learn more about fees.

Unarranged overdrafts can be charged differently, depending if you have an arranged overdraft with us or not.

When are fees charged?
The fees will come out of your account on the 1st of every month. We’ll apply the interest at midnight UTC on the day the payment settles.

UTC stands for Coordinated Universal Time – which is the standard used to align time around the world. It’s the same as GMT (Greenwich Mean Time) but it ignores the clocks forward in the UK every spring.

You'll see these fees accumulate in a feed item stuck to the top of your Home tab, but you'll only be charged the fees on the 1st of the next month.