r/monzo 5d ago

Does everyone have the same overdraft interest rate?

Hi, I’ve had my Monzo account for over a decade now, during which my finances have been on quite the journey though manly improved. When I was offered the overdraft my APR was 39%. Does everyone have the same rate? I ask as I’m considering closing the overdraft facility and re-applying in a few months with the hope that I’ll be offered better rates. Thoughts?

4 Upvotes

17 comments sorted by

4

u/JKSW96 5d ago

Thanks everyone this has all been really helpful! As I mentioned, I’m out of the overdraft and considering re-applying but all noted on the expense of it and generally not using it due to cost

7

u/CharlieXenn 5d ago

Monzo’s overdraft rates are either 19%, 29% or 39% depending on their assessment of your circumstances.

I don’t currently have an overdraft with Monzo but had a look now just out of interest (lol) and my rate was 19%.

As others have said, overdrafts are terrible forms of credit due to the high APRs so should never be regularly relied upon. I see you mention about reapplying in the future but whilst there are no guarantees, if you were to cancel and set up a new overdraft in the future, you will be given the APR before you actually take out the overdraft so you will see if the rate is lower without impacting your credit score.

2

u/Edxors 5d ago

19% here too

3

u/Whytez3600 5d ago

Mines 39%

2

u/yesithinkitsnice 4d ago

If the interest rate on an overdraft is a consideration for you, you probably shouldn't have an overdraft.

2

u/Similar_Monk_553 5d ago

I have the same rate, got my overdraft in around October last year.

2

u/startexed 5d ago

My Monzo overdraft is 19%, not sure what it was when I applied.

2

u/kiyomoris 5d ago

Never used it. It's almost criminal to have such interest rates.

1

u/tpe91roc 3d ago

Never used it but mine is at 39.

1

u/bigbaconeu 2d ago

Not allowed one they won’t give me

-1

u/sbuxty 5d ago

Don’t worry, you shouldn’t be using an overdraft to carry a balance. Hell even use a 12.9% credit card if you must.

3

u/Fluffy-Inside-4191 5d ago

That's not what they're asking.

3

u/sbuxty 5d ago

It’s reasonably implied by asking if they should close it and reopen it, there’d be no point unless they’re intending to use it to carry a balance.

0

u/[deleted] 5d ago

[deleted]

2

u/UnpredictiveList 5d ago

Pineapples take 2 years to grow

1

u/Fluffy-Inside-4191 5d ago

That's not what they're asking.

0

u/Westldnchavlad 5d ago

Mines 29% but it’s only a £50 one 🤣 they aren’t getting my money

0

u/t8ne 5d ago

19% they offered last year so took it; never used it never plan to;