procedure with student overdrafts

alistairolsen

I will be moving from uni into full time employment and as far as I know my student overdraft account whichis currently free will become a graduate account and continue to be free for some period of time.

Obviously £2k is £2k no matter whos money it is and the longer I can hold onto it for free the better. How do I go about keeping it interest free for as long as possible?

I could do with the money as a contingency for a house move at the very least!

GlasweJen

as far as i know it is at the banks discretion though most give you a maximum 12 months before asking it to be paid in full

rb10

It depends on which bank it's with, check the T&Cs/bank's website.

Most will gradually reduce the interest free level over time. But you need to be aware of when this will happen. Be aware though that the bank won't necessarily write to you to tell you whether the interest-free level is reducing, as it will all be within the original T&Cs that you signed when you opened the account.

whitfreak

Glaswejen, with hsbc by any chance? Banks vary, Natwest have given me in principle 3 years to pay mine off with maximum limits reducing from £2000, to £1000, to 500 each year. These terms vary from bank to bank and it is possible to discuss things with the bank if your needs change (like if you go back and do a masters). Your bank should write to you each time you overdraft limit is reduced (presuming the wrote to you everytime it was increasd).

alistairolsen

my bank has always written to me a few days after Ive asked verbally for a raise in OD, but Id prefer to know before ny changes and save the bank charges :P

I guess the only way is to go and ask in a branch what the options are!

Fire_Fox

I can tell you what not to do from things I have read on this site ... DON'T forget to inform your bank of every change to your circumstances: change of address, graduated, on unemployment benefits, new job first pay pending etc. Banks are getting very twitchy about what may appear to be someone borrowing money and then disappearing. Even if you think the bank knows your home address, tell them again. They are within their rights to withdraw an overdraft with no notice so put all changes of circumstances into writing and send recorded delivery. If you do anything by phone or in branch, keep a record of the name and date of the team member you saw. In this case paranoia is your friend!!

GlasweJen

no, i'm with the halifax