Student accounts/cash ISA

Lokolo

surfsister wrote: »

we've been trying and it doesn't work so had to contact them direct to change bank details!

Yeh they do half suck to be fair but least its done.

chenzo5

it was what ladyluck101 said: "when you reach your overdraft limit, transfer some ISA money back into your student account." I thought you got penalties for transferring your cash from ISAs and lose all the tax benefits. If i'm totally wrong, please tell me how/why.

By changing bank details, do you mean that I just call student finance and say that they should transfer my first loan payment to natwest from my barclays (after i've downgraded it of course).

I was told you can be fined and possibly taken to court if you have 2 student accounts which seems odd since some people have had more than one, but maybe not the barclays and natwest combo. They both want to be the main bank account, so I've decided on downgrading my barclays student account to a current one.

Now I'm wondering where to have my cash ISA at - barclays or natwest?

Lokolo

You could have it with Egg. 6.05% thats what I have.
I also have a Barclays ISA which has a good rate of 6.08% monthly (6.25% yearly)

I wouldn't worry about it, yeh its half illegal. I have 2 student accounts, but I didn't choose to. HSBC auto upgraded my account after I went and got a Lloyds one. Been a year and nothings been done about it.

Um basically, you lose the tax free status. For example. You have £500. You put £500 in ISA for tax free interest. You take £50 out. That £50, any interest now earnt on that will be taxed. So you will have £450 with tax free interest, £50 taxed interest. But you have a £3600 yearly deposit limit, so it only really matters if you are depositing near that amount. (basically the £500, you took £50 out, means you can only put in another £3100 - as you deposited £500, not £3150 as you took £50 out)

chenzo5

I think with the bank accounts you chose you're allowed to do that, but with barclays and natwest it's a no no and i'll avoid trouble with having 2 student accounts for now.
But since I've decided on having a natwest student account and a barclays current account, does that mean I can have a barclays ISA account too?

I haven't heard of Egg before. I would go for that account if I had so mmuch money for savings, it's great what you're doing to lower your debt!

Lokolo

^^ yep exactly. If you have internet banking then you can apply online

chenzo5

by applying online do you mean for a cash ISA at barclays?

Lokolo

Yep thats right