opned student bank account how to use overdraft?

surfsister

Hi daughter off to uni and has opened her student bank account and finace will go in at end of Sep. Her student account has an overdraft but none of us ever go overdrawn so she's not sure how to use it.

Can she now overdraw and not incur any charges or must she wait till the student loan goes in?

Also can she be overdrawn for long periods ie write a cheque and put iit n a savings account? We're not sure how best she should operate? Thanks for any tips.

Lokolo

Exactly how it works. She will incur charges if she goes over the agreed overdraft limit.

Who is it with?

My balance for HSBC is currently -£700. £500 of it is in savings (I have a £1k overdraft)

-edit-

just to say, check if its active yet. if you have internet banking, check the balance and available balance, if there is a different which is the overdraft amount it is active. however if the available balance is the same as the balance (or by very little) then it has not been activated yet and going over will incur charges.

silvercar

All explained here:

http://forums.moneysavingexpert.com/showthread.html?t=1151911

surfsister

thanks lokol i& others, it is with nat west and it is active showing amount £1250 available, it just sounds too easy to be true!

FreheitOverture

You have to pay it back when you finish.....

tarmeetsb

I have a similar question, I've set up a new bank account, and I've been told I have a £1250 interest free overdraft limit, but this account is not the account which I am having my student loan paid into so for the duration of my studies it will pretty much have no money in it, I only opened it for the free student railcard that was offered.

I want to ask if it possible to simply withdraw all of the money on my overdraft and move it to a high interest bank account, then I could leave it there for the duration of my studies, collect the interest and simply move the money back whenever the bank requires it.

Lokolo

Yes you can do that, but sometimes the notice will be so slim that you won't be able to get money back in there and you may incur charges. But thats unikely, just keep an eye out on it.