Deficit Banking & multiple 0% interest account

shakey_3

Having done some invesitgation i have come to the following tentative conclusions:

There are at least 5 banks (LLoyds TSB, Halifax Bank of Scotland, Smile, HSBC and Natwest) which can offer you an interest free overdraft and if you pump all the money that they can offer you over the period of your course into a high interest instant access account (internet savings accounts are good for this - Halifax Internet Saver / Nationwide e-Savings) you can stand to make about £1,000 profit after tax.

johnllew

There are at least 5 banks (LLoyds TSB, Halifax Bank of Scotland, Smile, HSBC and Natwest) which can offer you an interest free overdraft

And how many of those will allow you to have an interest-free o/d with another bank?

zcaprd7

Most will, I don't think they can not allow you to bank elsewhere....

...however they stipulate things like paying in a certain amount each month - or paying in your student loan etc.


One can usually get around these hurdles with some imagination!

shakey_3

I feel it is necessary to point out that i have not read the finer details of the terms and conditions laid down by these 5 banks in regards to your code of conduct with your account, but i will get around to that soon. It's just that they are difficult things for people to understand at a quick glance as i'm sure most of you know

System

i've got student accounts with the co-op, natwest and hsbc.
also got a tax free savings account at 4%.

can take £1000 from each account in the first year to earn £120.
this goes upto between £1200 and £1500 in the second and third years, earning £300-400 more.

transfer money between them every so often to keep them active.
i just wish bacs transfers could be quicker than 3 days.
gets annoying waiting!

System

oh, i also checked my credit report with experian and only hsbc shows up on there, and it doesnt mention the balance 8)

i've got a barclaycard which shows up, but i pay that off in full every month by direct debit.

the other two banks must be on equifax, but i havent checked that report yet.

realaledrinker

As several people have stated, keep some activity going on your accounts.  If you have a free overdraft maxed out, the bank will eventually catch up with you.

As account holders with " " will shortly find out  ;)  ;)

ohit

I get my A-Level results in two weeks time.

Last week I applied online for a bunch of student accounts thinking I can post a bunch of photocopies and that'll be that.
I overlooked the fact that the banks want letters of acceptance as opposed to conditional firm offers. Anyway, this is cool as all the banks will simply hold my application until I can provide them with that.

My question is to those that currently have more than 1 student account... Are photocopies of this letter ok? How did you get around this?

Also, I know asking for an overdraft means a credit check, but surely every 'student' is accepted for it anyway? I mean, credit scores for students are bound to be poor, and the student accounts are designed for this sort of thing (0% overdraft).
I'm a bit concerned about the credit check bits, especially as it'll be with multiple banks at around the same time. It's just that I currently hold a few credit cards completely maxed out with their 0% balance transfer offer (all pushed into a high interest account), which will obviously be showed up on my credit file.

Any advice on my concerns would be appricated.

The list of banks I have found to be offering student accounts (with 0% overdraft facilities) is:

Abbey
HSBC
Natwest
Halifax
Royal Bank of Scotland (RBS)
Smile.co.uk
Lloyds TSB
Barclays

The first three I already had pre-18 type accounts with, and so they just need converting. Abbey have already started the process and HSBC posted letters saying to inform them once results are received.

Halifax rejected me instantly through the online application process, but I'm gonna retry in a couple of weeks with a slightly different approach.

I'm still waiting a letter from RBS and Smile, but these are two that will hold my application until I get letter of acceptance.

Lloyds and Barclays require me to go into a branch so I'll do that in about 3 weeks or so once acceptance letter arrives (waste of time otherwise).

oooo, I'm looking forward to all this :-)

Cheers guys!

juno

I get my A-Level results in two weeks time.

Last week I applied online for a bunch of student accounts thinking I can post a bunch of photocopies and that'll be that.
I overlooked the fact that the banks want letters of acceptance as opposed to conditional firm offers. Anyway, this is cool as all the banks will simply hold my application until I can provide them with that.

My question is to those that currently have more than 1 student account... Are photocopies of this letter ok? How did you get around this?

Also, I know asking for an overdraft means a credit check, but surely every 'student' is accepted for it anyway? I mean, credit scores for students are bound to be poor, and the student accounts are designed for this sort of thing (0% overdraft).
I'm a bit concerned about the credit check bits, especially as it'll be with multiple banks at around the same time. It's just that I currently hold a few credit cards completely maxed out with their 0% balance transfer offer (all pushed into a high interest account), which will obviously be showed up on my credit file.

Any advice on my concerns would be appricated.

The list of banks I have found to be offering student accounts (with 0% overdraft facilities) is:

Abbey
HSBC
Natwest
Halifax
Royal Bank of Scotland (RBS)
Smile.co.uk
Lloyds TSB
Barclays

The first three I already had pre-18 type accounts with, and so they just need converting. Abbey have already started the process and HSBC posted letters saying to inform them once results are received.

Halifax rejected me instantly through the online application process, but I'm gonna retry in a couple of weeks with a slightly different approach.

I'm still waiting a letter from RBS and Smile, but these are two that will hold my application until I get letter of acceptance.

Lloyds and Barclays require me to go into a branch so I'll do that in about 3 weeks or so once acceptance letter arrives (waste of time otherwise).

oooo, I'm looking forward to all this :-)

Cheers guys!

I've applied for a student bank account with Natwest, and they want you to take your acceptance letter in to the branch, where they look at it, photocopy it and give it back to you. So you've still got it to take into anywhere else.

ohit

Thanks for your reply juno, sounds promising.

I'm more concerned about the other banks (mainly HSBC and Barclays). I've heard they only allow an original to be shown to them, which they then stamp, and therefore giving it to another bank is useless.