The Sun. Previously, customers beyond the £20 buffer were charged a flat 50 pence per day for all overdrafts. The neobank is also raising its maximum overdraft from £1,000 to £3,000 for some users.
The changes will most affect customers who overdraft large amounts or have poor credit. In Monzo's case, overdrafting small amounts for short periods of time with the new interest rates could be even cheaper than paying a flat 50 pence per day, meaning that some customers who accidentally overdraft small amounts might actually be better off under the new system.
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