Monzo updated their overdrafts on 1 April 2020 to comply with new UK FCA regulations.
Overdraft fees transitioned from a fixed 50p per day to an EAR of 19%, 29% or 39% based on credit score.
87% of customers will be better off or see less than £1 change monthly; limits for some increased to £3,000.
The free £20 buffer was removed, with a maximum charge of 57p for being £20 overdrawn for a month.
Tools and proactive messaging to help users manage overdrafts sustainably will be introduced.

Monzo, a startup, provides a user-friendly digital banking platform exclusively to UK residents. Customers can open a bank account through their phone quickly and for free. Monzo's features include instant transaction notifications, budgeting tools, categorizing expenses, savings pots, and analyzing spending with Trends. They offer overdraft and loan services, a no-fee Mastercard for international usage, and competitive exchange rates. Monzo Plus and Monzo Premium provide additional benefits for a monthly fee. They focus on security with FSCS protection, 24/7 support, and anti-fraud measures. Monzo aims to personalize banking while keeping over 8 million users' money safe.

Monzo

Digital bank with full UK account, savings, loans, fraud protection.

Monzo Overdraft Changes

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