Mobile-only bank Monzo is offering overdrafts to its current account customers for the first time.

A limited number of users had previously been offered overdrafts on a trial basis, but a full rollout across its customer base has started this week.

Monzo customers will receive a notification on their smartphone when they become eligible, although some users may need to supply more financial information such as their yearly income. This is so Monzo can run a credit check.

The bank will charge a flat fee of 50p per day to any customer using their overdraft. This is capped and means no customer will be charged more than £15.50 per month.

The minimum overdraft amount is £50 and maximum is £1,000.

Monzo account holders have to opt in to the overdraft system when they receive the sign-up notification, so users who do not wish to have an overdraft will not have it added to their account automatically.

Once registered and signed up for an overdraft, Monzo customers will receive notifications when they are about to go overdrawn on their smartphone.


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