Where To Put My Student Overdraft?

Jakg

Currently, Halifax have given me £500 student overdraft, interest free - this is mine for the next 5 years at 0% interest and is due to raise over the next few years (probably up to around £3000).

Where would you invest this money for the best possible rate? I would like some access to it but dont think I will need it.

Tax-wise I earn ~£300pm part time so I don't really pay any tax so i'm not sure an ISA is the right thing for me.

Help, please?

Also - is it worth opening another student account and doing the same with the overdraft from that?

rb10

Jakg wrote: »

I would like some access to it but dont think I will need it.

Any overdraft, from any bank, is repayable on demand. This means that the bank can ask for it back at any time. So ensure you save it in an instant access account that you can easily get to, should Halifax remove your overdraft facility.

It also might be worth not taking out the whole overdraft, but leaving some money in the account, as you do need to make sure you never go over your overdraft limit.

And the maximum of £3000 is not guaranteed, but you need to work up to that by managing your account well.