Top Student Accounts 2008/09 Article Discussion

JRKyte

Hi Lokolo,

With regard to the overdraft being repayable on demand, I am going to keep a watchfull eye on my accounts, should a bank ask for the overdraft back, I should be able to rely on family to loan me money from their accounts untill I can get the money back out of the ISA - I am aware not everyone has this security and if all the banks (God forbid!) ask for their money back simultainiously, I think the word is 'screwed'.

The Halifax said 5 Working bank days and applied today so I expect to receive all of the documents on next friday.

Unfortunalty, I did ask about the overdraft on the NatWest account but the advisor gave one of those open ended questions where she didn't actually answer my question at all. Something about individual circumstances...

Jon

Ronan88

Ive been round all the banks to get a student account overdraft set up, and they have all been saying I can't as im under 18!!!

Is there any way I can get around this?

JRKyte

Pretty certain you can't have an overdraft untill you 18 to be honest mate!

Jon

Lokolo

You have to be 18 to get an overdraft as they are lending you money.

Um yeh individual circumstances, they have to do a credit check to make sure you aren't too much of a risk.

smiffypro

Just a quick note about Natwest; I got confirmation that my account was being upgraded about a month ago and received my railcard, etc.
My overdraft still hasn't been applied to my account so I went into my branch Friday to ask about it. I got told there's been a "blip" in the system so some people haven't had their overdraft yet and to come back in a weeks time.
I need it big time until I get my Student Loan!

natweststaffmember

MSE Natasha, I was wondering whether you would or have thought about looking into Internation Student Accounts? It might be too late for this year but possibly next year? I have just spent 10 hours doing this for another forum and it is truly shocking the information available to students coming from Overseas to the UK and that is from the Universities themselves. Accounts that are "free" and without high monetary clauses.

theguesswho

I have just finished 4 years of University and am about to start a Master's degree and my experience of overdrafts varies massively. To start, when you open a student account the advertised overdraft amount does not immediately apply. The OD will increase incrementally over your course of study, e.g. 1st year's will be eligable to 1250, 2nd year students 1500 etc. I've been with RBS and Natwest and am quite sure that's how it works at most banks including Halifax. Another problem is that the advertised amount isn't always a permenant OD. For instance at RBS they advertise a maximum OD of 2750, this only applies given two caviets. Firstly that you are in your 5th year of study (so a master's student in most cases) and that the OD amount of 2750 is only temporary. This is granted on a case by case basis and is in no way guaranteed. Which ever bank you go with I would advise asking what you can get now, rather then asking what the maxium is that they offer.

I would also like to point out (i think it was Jon who posted this) that it is extremely difficult to open multiple student accounts. Although this webpage states that some banks may allow it, most highstreet banks (the ones that you will probably go with, dont). Any major bank's student account will require that your student loan be paid directly into that account from the student loan's company and not from a third party (e.g. another account which is either your's or your parents). I would strongly advise against opening multiple accounts even if you manage to find a way to do so. As a student you will end up spending what ever money is available to you, and if you have three lots of overdrafts chances are, when you're drunk, you will spend a lot of it.

Which ever bank you go with I would reccommend changing your branch to one local to your university as they will have better experience dealing with students, and tend to be more sympathetic. I would also advise going with RBS over Natwest. Although RBS owns Natwest I have had some bad experiences with them and actually ended up changing my student account to Natwest.

Good luck with OD's.

P.S. Don't ever be lured into getting a student credit card!

JRKyte

As far as I'm aware, the banks I have chosen DO allow you to open multiple accounts, again, forgive me if I'm being ignorant to somthing or overlooking somthing, but these are the terms and conditions for each of the banks.

Natwest;

4.3 You must use your account as your main current account and
deposit regular amounts by way of local education funding,
parental contribution, salary, student loan or other funding,

such as sponsorship or bursary.

Halifax;

If you have an arranged overdraft you must pay your salary, grant cheque, student loan, money from your parents or other regular payment into your account. The amount of overdraft we give you depends on your personal circumstances and whether you make regular payments into the account. You may not get the full £3000 overdraft.

RBS;

3. Main Student account means the account should be used for the purpose of ordinary banking transactions including credits (your main student funding credited), debits, cashline transactions or Direct Debits and Standing Orders.

Co-op;

1. To open and have an account you must be a UK citizen or resident or, if you are a foreign national, you must have been a UK resident for a minimum of 3 years and be over 17 years and 6 months in age and in full time education, an under or post graduate student, including mature students and existing students.

As far as I can see the RBS is the only account term that could be interpreted as having to have a student loan paid in the, the first two say it can be parental funding, so I can move money into my dads account and then into mine, within an hour.

Again sorry if i'm getting this wrong, I'm on a learning curve also! thanks for the advice though 'theguesswho' I think I will change my branches as it seems like a really good idea!


HOWEVER, just as I posted this I went to apply for an account online with the co-op and it says as you click Apply now; 'Agree to transfer any existing student account to us (you must not hold any other student account with another bank).' So that is now off my list!

Jon

Nikolic

Signed up for my Halifax account today. Just wondering, as I earn less than 6k a year I don't pay tax, therefore is there any point in putting the money into an ISA? Will a regular savings account be better?

JRKyte

Hello, pretty sure you pay tax on your saving, therefore in an ISA, you get £3,600 tax free savings in the first year, and accumulative £3,600 each year there after.

I think....

Jon