I am a newbie getting my head round it all. One thing occurs to me is what happens if you attempt to spend more than your virtual balance, even though you have enough funds in your accounts. Does it get declined?
Can you explain what you mean by virtual balance to provide some context please?
Sure, the net balance showing after the app has taken into account in total in your account. For example you have £10 in total in your account. Goal 1 has £2.50, goal 2 has £5.50. £8.00 is in your goals in total. Your virtual balance is showing on your home page as £2.00.what happens if you go to buy something for say £3.00 without transferring any out of your goals? Does it get declined? Thanks
Yes it would be declined
Thanks makes sense albeit a little inconvenient, but the again the app would not know which goal to deduct from…unless you could specify…Thanks anyway
As I understand it, depending on your settings, the account will go into overdraft but you won’t be charged interest as long as the total balance in your goals is greater than the amount outstanding in the overdraft.
If the limit you’ve set for your overdraft doesn’t cover the amount of the transaction, I’d expect the transaction to be declined.
That’s how its been working for me!
Just ‘tested’ it. Although i had more than enough in my account, the virtual balance was below what I was spending. It was declined. I just moved some money out of a goal, and then it was accepted.
Seems that’s how it works for me then.
Indeed if your main balance is too low and you do not have access to an overdraft then the transaction will be declined even if you have money in your Goals, as this money is locked away not for use by your main balance.
However you will not accrue any interest if you have money in your Goals that covers a debit balance in your main balance.
I hope this helps