Mobile-only bank Monzo has announced that it is introducing overdrafts to its current account.
Monzo’s current account customers will be able to find out if they are eligible for an overdraft in their app as the roll out to over 500,000 customers begins.
Eligible customers will receive a notification if the option is available, while some customers may be required to provide additional information to access the service.
The overdraft will cost 50p for each day the account is overdrawn, with a maximum fee of £15.50 per month.
Current accounts also will have a £20 overdraft buffer for delayed transactions, such as payments to Transport for London.
“Offering overdrafts to our customers is a milestone we’re pleased to reach,” said Tom Blomfield, co-founder and CEO at Monzo.
“This wider roll out is another important step towards building a bank account that really works for customers.”
Monzo will send notifications when customers are approaching an overdraft and there are no hidden charges.
The overdraft feature is already available on iOS and will be rolled out to Android this week.
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