Student Account Loophole?

Walne456

After looking through money savings guide to student finance I noticed that HBOS (Halifax Bank of Scotland) and Natwest both allow you to have other bank student accounts set up and don't require regular activity to be open. I already have a student account but is it possible to open a student account with these two banks, take advantage of the interest free overdraft (3000 & 1500+) by transferring the money to a single high interest account to gain interest. Once graduated or the overdraft is not interest free anymore, transfer the money back to pay off the overdraft, close the accounts and enjoy the interest. Is this allowed because i'm tempted to try it?

Lokolo

Read the terms and conditions first. May require student loan to go into it or may say 'You may not have another student account elsewhere'.

If neither of them then yes you can.

But Halifac are very strict with their student accounts and only a few people can get them, and very very very few people get the £3000. Most people only get £500.

The_One_Who

Make sure you read the T&Cs of your current account and the one you want to open, but if there is nothing in them then it should be fine.

As Lokolo says, Halifax are quite strict with their accounts. To get the large overdraft you need to be with them for a few years. They might start you off at £500 and then after a few months may up it if you ask them. More people seem to get Natwest accounts.

natweststaffmember

Walne456 wrote: »

After looking through money savings guide to student finance I noticed that HBOS (Halifax Bank of Scotland) and Natwest both allow you to have other bank student accounts set up and don't require regular activity to be open. I already have a student account but is it possible to open a student account with these two banks, take advantage of the interest free overdraft (3000 & 1500+) by transferring the money to a single high interest account to gain interest. Once graduated or the overdraft is not interest free anymore, transfer the money back to pay off the overdraft, close the accounts and enjoy the interest. Is this allowed because i'm tempted to try it?

I have just thanked you when I wanted to quote you but hey ho. If you simply leave the account dormant then more than likely you will get letters from NatWest demanding the whole amount repaid unless you use the account(dormancy period for Student/Graduate account is 180 days). It will affect any increase on the account and it will mean the 5 year railcard for you will be a one year railcard as it will not be renewed.