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Should I stooze on my £2,000 free overdraft?

HairY
HairY Posts: 5,008 Forumite
edited 24 June 2009 at 12:16PM in Loans
Hi,

I have had a Smile student account since 2006 and it runs until June 2010. I recently wrote to them about completely non-overdraft related matters and got a secure message confirming they had done what I asked but "also increased my overdraft limit to £2,000".

Sure enough, logging in today my agreed overdraft states £2,000. I have never gone overdrawn or requested overdraft in the past, in previous years it was always £0 despite Smiles interest free overdraft limits for students.

My question is, although the interest wouldn't be great - should I transfer say £1500 into my iNG Direct instant access savings (2.75%) account for a year? Is £40 worth it?

I already intend to put the majority of next semesters student loan into savings because I have enough money to get by on with no problems.

As far as I can tell from reading the Smile student account terms and conditions, there is no fee or interest whatsoever.
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