Overdraft fees suck, but sometimes you need more money than what you currently have on your bank account for a big purchase. Until now, Berlin-based startup Number26 didn’t allow overdraft. Your transaction was simply denied. But now, you can accept overdraft with one tap in the company’s app, and then turn it off later in one tap as well.
As a reminder, Number26 participated in our Battlefield competition at Disrupt London 2014 and plans to reinvent your bank account. While this is no small feat, Number26 is better than your average bank in many little ways.
After creating an account in the Number26 app, you receive a MasterCard that has a few hidden tricks. For instance, you can disable online payments, set push notification alerts and more in just a few taps in the company’s app. With Number26, you won’t have any surprise at the end of the month.
When it comes to today’s new overdraft feature, it follows the same principles. Starting on December 1st, Number26’s banking partner Wirecard Bank will offer a flexible overdraft level to its clients.
You just need to open the app, go to your account page and go to the overdraft menu. Then, you can choose to activate or deactivate it instantly. Depending on your account history, Number26 will give you different overdraft levels, up to €2,000. You can set a lower level if you want to avoid surprises.
Number26 also tells you in real time how much you owe in interests — again, it’s all about being transparent with its customers, and I find this approach very refreshing compared to old banks.
The company is also hinting at future product updates, such as savings accounts, investment products and more. So far, 70,000 people have signed up to Number26 in Germany and Austria. While you can only open a bank account if you live in these two countries for now, the app is now also available in English.