Overdraft help needed

StudentBoy

Hi, I'm new here and this is my first post.

I currently have a student account with an overdraft of £500. My question is; if my bank see that I am continually in my overdraft each month (say for example -£120), are they likely to contact me about changing/closing my account or changing my overdraft amount?

Lokolo

Maybe. If there is a lot of use with the account i.e. a lot going in, a lot going out. then its unlikely. however if you withdraw £500 and never use the account then yes, they may just take the overdraft away with no notice.

Ytaya

So long as the account is clearly in regular use, it's highly unlikely (but not impossible) that they'll withdraw the overdraft. I've been over £1400 into my Barclays 0% £1500 overdraft for 2 or 3 years now. Just last week they asked me if I wanted to increase the limit!

StudentBoy

Thanks for the 2 replies guys. My account is in regular use with withdrawals and deposits being made regularly, so i guess I should be fine. It's just that I like to keep away from the overdraft as much as possible, because it can be a nightmare worrying about finances while having to study at Uni.

GraceC

I had a Natwest student overdraft, and from the minute it opened three years ago I have been overdrawn, usually to the maximum. I graduated this summer and they have increased my overdraft again with no mention of cancelling it, but I am aware that they decrease the amount of my overdraft every year from now on. From their point of view, they are hooking you with the account now so when you are graduated and earning more, you are more likely to stay with them. You will pay it back eventually, but I havn't heard of anyone who has had to pay theirs back early because the bank wanted them to, so I wouldn't worry.

Also, Martin has mentioned it on the site somewhere, but if you have an 0% interest overdraft, it makes a lot of sense to take out as much money as you can afford to from it and put it in a high interest account making it earn interest for you. :money: