Monzo Or Starling Bank account

colsten

simongregson said:

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.

I hadn't expected any cunning plans from Starling but rather from the Starling account holders who would take out overdrafts in order to be able to 'hide' their own money in Starling spaces. So far, I still completely fail to see any point in doing this, particularly if you can 'hide' your spare cash in instant access accounts which pay up to forty times the interest Starling pay.

I completely get the concept of using your own money to provide an "overdraft buffer", or that of profitable offset accounts, or that of stoozing. But what's the role of an actual Starling overdraft in any of these scenarios?