Monzo Or Starling Bank account

Alex9384

colsten said:

It’s valid to argue that a credit check should only be carried out when people apply for credit. With dinosaur banks, you automatically apply for credit when applying for a current account, even if you don’t apply for an overdraft. All dinosaurs can allow you to go into an unarranged overdraft, whereas the Fintechs always stop you dead as soon as a payment would send you below £0. Some dinosaurs even give you a small agreed 0% overdraft without you asking for it. This might be useful for some people some of the time.

There is also way too much fear around about these hard searches. A few searches make almost no difference, and none at all unless you are planning on applying for a large credit facility (mortgage, loan, credit card) in the next 6-12 months. Your ability to get further current accounts is also not impacted at all.

If fintechs stop you dead instead of going below zero, I find it perfectly OK, as long as that's what you really want.
I still think banks should ask whether you want the overdraft or not. What's the point of having an arranged OD, if you can go overdrawn anyway even if you don't have it?
In a hypothetical situation, if you had 2 accounts (1 Monzo and 1 dinosaur) with 1 pound in each and your both cards would be stolen/skimmed, whatever... The thieves would be able to only steal that 1 pound from your Monzo, but hundreds or thousands from your dinosaur account just because it would let them go overdrawn even though you didn't want it?

If nothing else, hard searches are annoying as I don't like seeing red warnings from CRAs about multiple searches when checking my credit reports, then having to wait till they fall of my history.

colsten

Alex9384 said:

If nothing else, hard searches are annoying as I don't like seeing red warnings from CRAs about multiple searches when checking my credit reports, then having to wait till they fall of my history.

I can only repeat again that hard searches only matter if you are planning on applying for a large credit facility in the next 6-12 months. And even then, one or two searches for current accounts will only make a minor difference. People should be realistic and not by default be scared of searches.

Dandytf

Is there any alternative way to build up approval for Starling small overdraft.
I'm not switching fully from rbs, though recent Starling account open, smart debit card arrived today.
Next possible overdraft application ,from June.

Does adding a few hundred or more via transfers from rbs help.
thanks

[Deleted User]

Dandytf said:

Is there any alternative way to build up approval for Starling small overdraft.
I'm not switching fully from rbs, though recent Starling account open, smart debit card arrived today.
Next possible overdraft application ,from June.

Does adding a few hundred or more via transfers from rbs help.
thanks

I've used Starling as my main bank since 2017 and they still won't approve me for an overdraft. Not like I want one, just when I tap the option in the App it always comes back negative.

My account balance has stayed over £3K in the last year.

Dandytf

thanks @Deleted_User

I don't specifically need Starling overdraft, only thinking maybe I'll make use of this latest account.
Spaces are simple and ideal, almost hides some funds for a while.

r.b.s. have 2.4k prompt via online banking, I'm fine with chosen 300 though fighting to keep above this as much as possible.

Didn't realise Starling could be strict if 3k isn't going to be enough.

colsten

Dandytf said:

thanks @Deleted_User

I don't specifically need Starling overdraft, only thinking maybe I'll make use of this latest account.
Spaces are simple and ideal, almost hides some funds for a while.

 Paying a shedload of overdraft interest just so you can use spaces doesn't seem to make a lot of sense. You can make use of the spaces with your own money. However, you get next to no interest in the spaces, and there are still other accounts which pay as much as 2% AER.

simongregson

colsten said:

Dandytf said:

thanks @Deleted_User

I don't specifically need Starling overdraft, only thinking maybe I'll make use of this latest account.
Spaces are simple and ideal, almost hides some funds for a while.

 Paying a shedload of overdraft interest just so you can use spaces doesn't seem to make a lot of sense. You can make use of the spaces with your own money. However, you get next to no interest in the spaces, and there are still other accounts which pay as much as 2% AER.

The balance of your spaces is counted towards your balance in terms of whether you need to pay overdraft interest, so stashing money in them won't result in additional overdraft interest

colsten

simongregson said:

colsten said:

Dandytf said:

thanks @Deleted_User

I don't specifically need Starling overdraft, only thinking maybe I'll make use of this latest account.
Spaces are simple and ideal, almost hides some funds for a while.

 Paying a shedload of overdraft interest just so you can use spaces doesn't seem to make a lot of sense. You can make use of the spaces with your own money. However, you get next to no interest in the spaces, and there are still other accounts which pay as much as 2% AER.

The balance of your spaces is counted towards your balance in terms of whether you need to pay overdraft interest, so stashing money in them won't result in additional overdraft interest

What's the cunning plan in doing this?

[Deleted User]

EarthBoy said:

Deleted_User said:

Was Metro built from the ground up or did they just copy some old banking systems?

They've outsourced the lot.

https://www.computerworld.com/article/3413804/metro-bank-outsources-entire-it-infrastructure.html

I thought so. I don't think Metro can be regarded as a fintech bank anyway, when they started they tried to be just an old fashioned high street bank with the only difference being able to get your card in branch at the same time as opening the account. They are as irreverent as all the other high street dinosaur banks.Wannabedebtfree21 said:

Guys?? I have a monzo account which I would like to use, is the standard monzo account within the category of a basic account that I’ll likely be able to continue using once the official receiver has finished his investigations?

Monzo is a full current account not a basic account. If you are declaring BR, just wait and see what happens to your accounts rather than closing them first.

While not FSCS protected, Revolut and Kroo are legit e-money services and offer accounts with full debit card and account number which are perfectly suitable for receiving money in and day to day spending.

simongregson

colsten said:

simongregson said:

colsten said:

Dandytf said:

thanks @Deleted_User

I don't specifically need Starling overdraft, only thinking maybe I'll make use of this latest account.
Spaces are simple and ideal, almost hides some funds for a while.

 Paying a shedload of overdraft interest just so you can use spaces doesn't seem to make a lot of sense. You can make use of the spaces with your own money. However, you get next to no interest in the spaces, and there are still other accounts which pay as much as 2% AER.

The balance of your spaces is counted towards your balance in terms of whether you need to pay overdraft interest, so stashing money in them won't result in additional overdraft interest

What's the cunning plan in doing this?

The spaces aren't a separate account, just somewhere to hide money from your main balance. I suppose it might help with budgeting as if you had stashed money in spaces it would show a negative balance on your account if you overspent for the month, but your savings would counter the interest on the overdraft. Equally starling pay interest on the total balance of spaces + the main account (albeit a very low rate at the moment). genuinely don't think there are any cunning plans from Starling on this. Apart from them lending the money out, they are one of the banks lending via the government coronavirus schemes, which are pretty much risk free for them so probably make a tidy profit.