Top Student Accounts 2008/09 Article Discussion

Natan358

retepetsir wrote: »

Any details on graduate accounts yet? I'm with Barclays (Student Additions) and have just graduated. Apparently they charge ~£8 a month for their graduate additions account! :eek:

I get it for £2.50 because im a staff member, but it should be £5 per month, the overdraft is quite good, upto £3000 in the 1st then then reducing after that, you do get rac break down home assistance and mobile ins, i guess its not the cheapest graduate account i imagine but its not bad, im looking for another graduate account if anyone has any info, im going to be 2 years after graduating now so 2nd year which most banks will offer about 1500 as i need to change from natwest which is now charging me interest on 1600 overdrawn because they only allow 1000 after 2 years from graduating

flamingsombrero

Applied for the Halifax account last week. Everything went through fine and I was told to credit my account with any amount to activate it in order to receive my card and pin number.

Paid £10 into the account and a couple of days ago received my pin and then yesterday another letter which I assumed was my card. What I actually got was a letter telling me I must credit my account by a further £100 before they will send me a card.

Off there now to see whats going on and also to increase my £500 overdraft. Being messed around before even having the account yet does not exactly fill me with confidence in them for the future. Considering canceling it and trying Natwest or RBS.

[Deleted User]

I think that's their standard policy. I guess it's more to make sure that you don't just get the card and spend your overdraft straight away and not pay it back. More of a security thing for them. Of course, after you put it in and get your card, you can take it straight out again, so it's not too much of a problem.

flamingsombrero

Just got back from Halifax and the £100 credit is correct but is only an overnight credit so it can come straight back out if need be. They did say only a £1 credit was needed before I showed them the letter.

However they also informed me that is was their policy that you cannot extend an overdraft above the £500 until at least the second year of the course (their exact words). Now reading these forums it would appear this is just simply not true as it has been said many times the branch has the authority to approve an on the spot increase to £1000. Also if this IS true then nobody can achieve the status requirement to obtain the advertised £3000.

Not sure what to do now!

[Deleted User]

I would make sure that your loan is coming into your account, and any other income you may be getting and take some sort of proof in to show them. Think that's the most you can do really, perhaps ask to speak to someone high up in the branch rather than one of the regular staff and explain what the website says and ask what you need to do to get the full amount.

Flobajob

Hi. Having read most of the articles on student finance and student accounts, I think that I should take out a student loan for as much as possible and to stick the money in a high interest account (as the articles advise), but I am not certain whether or not to do the trick with the 0% overdraft (placed in a high interest account) to make money - I am concerned that if I stay overdrawn for 3 years or more then I will incur a bad credit rating, making it difficult for me to take out loans, credit cards, mortgages etc in future. With this in mind, I am not sure if the £500 or so that I can make (working on being fully overdrawn for £1000 the first year and £3000 the subsequent years) using the 'free' overdraft is worth doing.

Does anyone know if being overdrawn, even when there is no interest charged on the overdraft, counts against me for my credit rating?

Thanks,

Michael.

ilovelillbj

I applied for the Halifax a/c online yesterday and was rejected. (They offered me their easycash a/c...having worked with HSBC this last year I can guess this is their a/c for people with terrible credit ratings). When I rang and asked why she said 'we will be sending you a letter, it's most likely due to your credit rating'.

Looking at my experian report I can't see anything too wrong (although most of my applications are within the last year I have never missed a payment apart from being 10GBP over my overdraft for a day within the last 6 months).

I was going to go down to the local branch and ask them to reconsider, although looking at all the horror stories I don't know if I'll bother.

Now what do I do? I'm really worried that I'm going to be unable to get any sort of overdraft facility and that if I apply to too many more my credit report will be completely screwed...help!?!?

Lokolo

Have you tried anywhere other than Halifax? Doubt it.

You won't get the £3k overdraft, hardly anyone ever does. Halifax are ver strict their their accounts. Go elsewhere.

simonlarois

"Even that rare student breed, those likely to be in credit, can still profit by opting for the account with the biggest 0% overdraft, and use a budgeting technique I call ‘deficit banking'. The premise is to keep as big a negative balance within your 0% limit as possible and put most of the money in a High Interest Savings Account (tax-free for most students)."

Talked to someone at my bank about this today who said, categorically, that this was illegal. Basic reasoning behind it being that when you open an ISA or similar, you sign a declaration saying, amongst other things, that the money you put into the account is your own. Money from an overdraft - a form of borrowing - is not technically yours. The bank employee informed me that fraud and money laundering charges were possible sanctions for this.

Can anyone comment on this? Is 'deficit banking' legal or illegal?

Thanks,
Simon

NicosT

Hey guys I'm an EU student so apparently I can only apply for basic accounts. Just wondering if anybody has any idea which would be the best bank to open an account with?

appreciate any replies!