Top Student Accounts 2008/09 Article Discussion

johnf23

When joining SAAS for university (Im in 1st year) they asked for my bank account details etc. I entered in my lloyds tsb details since it was the card i used most...So now i have a student account with lloyds tsb. I am wondering...would i be able to change my student account to an RBS student account with the freebies? I have an RBS current already. Thanks.

Flobajob

Hi, I think my question kind of got lost in amongst other posts, so I'm reposting it again (original post = post #37 on this thread).

Anyways, does anyone know if being overdrawn, even when there is no interest charged on the overdraft on my student bank account, count against me for my credit rating? I would like to use the overdraft in a high interest account, but I'm worried that I might ruin my credit rating by doing this, making it difficult to apply for finance in future.

Thanks.

Michael.

Wiggynut

Flobajob wrote: »

Hi, I think my question kind of got lost in amongst other posts, so I'm reposting it again (original post = post #37 on this thread).

Anyways, does anyone know if being overdrawn, even when there is no interest charged on the overdraft on my student bank account, count against me for my credit rating? I would like to use the overdraft in a high interest account, but I'm worried that I might ruin my credit rating by doing this, making it difficult to apply for finance in future.

Thanks.

Michael.

only if you go over your overdraft limit and you get charged ... otherwise no.
the overdraft is 'free' to use as long as you don't go over without telling them etc.. ie: overdraft £500 you use £501.. then you get charged and that is the sort of thing that gets counted.. also means they might not extend your od when you ask later.

dwh_3

Flobajob wrote: »

Hi, I think my question kind of got lost in amongst other posts, so I'm reposting it again (original post = post #37 on this thread).

Anyways, does anyone know if being overdrawn, even when there is no interest charged on the overdraft on my student bank account, count against me for my credit rating? I would like to use the overdraft in a high interest account, but I'm worried that I might ruin my credit rating by doing this, making it difficult to apply for finance in future.

Thanks.

Michael.

Yes it does affect your credit rating. Your outstanding balance appears on your credit report (have a look at the credit report article, and you'll see how you can have a look).

As far as I know, it only stays on while that amount is outstanding (i.e. hasn't been paid back, plus or minus a few weeks for it to properly update), so if you pay it back, your credit report returns to being fine. It's important to know though!

trojjer

It's good to see a new article, finally. Thanks for the explanation Martin!

I decided to go with NatWest after being declined by Halifax, like a lot of people here. So now I have a £1250 overdraft facility and another Maestro card (awaiting activation). I haven't heard anything about the rail card and the webcam yet, though. Do I have to chase this up myself, or will it come with the student welcome pack? And I did apply online and enter the Windows Live Messenger prize draw for £3000 -- so do I need to check the website for the camera? I've got a lot of crappy old ones, and I'm looking to getting a nice new one (that I probably won't use much, but still!). Don't need to sell it, if I make about £60 interest each year from a minimum of £1000 "stoozecash".

Oh yeah, about the deficit banking. I dunno if I'll go through with it or not. I'm thinking that a "buffer" of at least £100 is a good idea? So instead of putting the full £1250 into savings, it'd be £1150 instead. I don't mind missing out on about £6 worth of annual interest, for some extra peace of mind that I won't get charged for making an "informal overdraft request" if I ever forget to transfer enough money into the current account, before purchasing with the debit card. The NatWest fees are massive -- and I thought £25 from Yorkshire Bank was a lot! At least I got them revoked on appeal and I was a lucky recipient of "good will" -- NatWest seem quite happy to sting you with two seperate fees totalling over £50, or an "Unpaid Item Fee" if they decide not to honour the transaction! I'm now quite weary of all that, and I can understand the campaign for refunds on a new level. Why haven't they been capped at £12 like the late payment fees for credit cards?

Would it be flagged as "suspicious activity" if I just transferred the overdrawn amount straight into a NatWest e-ISA? That seems to be the best savings account they offer; although it's not the best overall, at 5.50% AER vs. 6.10% for Icesave Instant. But isn't it safer to keep the borrowed funds in a place where I can put them straight back into the current account on the same day if I ever need to? I'm mindful of the clause which states that they can demand payment immediately, at any time, for whatever reason... Then again, it would mean a drop of about 0.6% for the rest of the savings I plan on accumulating over the first year of uni (lol), when you take into account the fact that you can only have one ISA per year. But I think I'm getting ahead of myself with my spreadsheet budgeting here. Even though I'm staying at home for the first year I will be giving my parents £100 a month (probably more, but still cheap); plus I'm determined to start "living a little". Whatever that means. It all seems to boil down to about £60 a week to spend. Which is more than I've ever spent in a "typical" week (excluding special occasions and the odd whimsy), and I'm 20.

And I don't think it's illegal as such -- why else would an HSBC employee admit to doing it herself? :think:

I'm going to apply for the £500 student credit card though, as I must've been rejected by Halifax for some reason, and I suspect it was down to a "lack of history". I've heard a lot of horror stories about credit cards, but I read all the small print (and this site of course) and I know that the NatWest card has 56 days of interest free period available. Plus it's safer than a debit card for online purchases; so when I do decide to order a new PC system in a few weeks (or maybe Christmas) I should be able to use the credit card first, then simply clear it within the month. I have no illusions about this process, and I'm rather neurotic when it comes to checking my balances online...

Oh, and I still haven't updated my bank details on the SLC website, to match my new student account. Gonna do that now... Unless I can pay into the NatWest account from the student finance sent to my Yorkshire Bank (plain) account, and keep both banks satisfied? Or would it have to be from the SLC to fall within NW's terms?

Ronan88

OK guys basically I have a under-18 account with RBS. I phoned up my local branch recently to ask about upgrading to a student account. When I asked about getting £100 when opening one the guy said that that was only available to new customers!!!

Has this happened to anyone else? I don't see this at all on the rbs page

dwh_3

Yes, it's a good idea to keep that buffer for the reasons you mentioned. I would say absolutely don't put the money in a Natwest account! They don't want you using that overdraft money for sneaky interest making, and are much more likely to make you repay it if they can see it's just in your account; AND you lose your ISA allowance! Much better idea to put it in the highest earning instant access account you can find (Kaupthing or Icesave; think realistically, are you going to be paying tax before you have to pay back the overdraft? If not, don't bother with the ISA, just go for the highest rate you can find; it'd be one thing if it was savings you're likely to keep, but you're not going to have the money that long). The banks can demand you re-pay the overdraft at any time, but they certainly cannot say "Pay it back today"; they have to give you at least a few days, so you'll be fine getting the money out of the account to pay back.

standardtoaster

Hello all, I started as a student last year and opened an account with Lloyds TSB. They offered a £50 bonus for not going into the overdraft for a few months, will they offer that again this year or is it for new accounts only?

pam0

if u dont receive the railcard for the natwest account contact the branch, they can get u they tel number to call to chase up.

Helen_T

Hi all! I'm just about to open a Halifax student account. What I'd really like to do is to have the full £3000 overdraft limit and use it to pay off an existing bank loan I have which I am paying a high amount of interest on.

Should I arrange to speak to the Halifax about that or should I keep it quiet and just ask for an overdraft increase without telling them why I want it?