Having two student accounts/overdrafts

schuey87

Hi

I've been reading the comparison of the student bank accounts in ther full table on this site here:

http://www.moneysavingexpert.com/banking/Student-bank-account#best

I've noted with interest that the answer to: Do T+Cs outlaw the student from opening a student account with another bank?

...is almost always "No."

I've just read through the T+C to the halifax student account, and note that it says nothing anywhere about not being allowed 2 student accounts, and the only limitation to having a student overdraft with them is that loans/parental contributions/income etc is paid into that account.

So, if I were to open a 2nd student account with halifax, and then transfer all incomes from my existing student account with Natwest, once they arrive in it, thereby my income goes through both accounts, technically am I meeting the T+C of both banks and should be allowed overdrafts with both?

Lokolo

Thats fine but I wouldn't. Banks will withdraw the overdrafts and leave you with big charges.

Mankysteve

They will withhold teh right to withdraw your overdraft at any time for any reason?

Lokolo

They can withdraw your overdraft at anytime they want. Overdrafts are a gift not a right.

bestpud

schuey87 wrote: »

Hi

I've been reading the comparison of the student bank accounts in ther full table on this site here:

http://www.moneysavingexpert.com/banking/Student-bank-account#best

I've noted with interest that the answer to: Do T+Cs outlaw the student from opening a student account with another bank?

...is almost always "No."

I've just read through the T+C to the halifax student account, and note that it says nothing anywhere about not being allowed 2 student accounts, and the only limitation to having a student overdraft with them is that loans/parental contributions/income etc is paid into that account.

So, if I were to open a 2nd student account with halifax, and then transfer all incomes from my existing student account with Natwest, once they arrive in it, thereby my income goes through both accounts, technically am I meeting the T+C of both banks and should be allowed overdrafts with both?

But what do the Natwest T&Cs state?

atypical

bestpud wrote: »

But what do the Natwest T&Cs state?

"You must use your account as your main current account. This means that the account should be used for the purpose of ordinary banking transactions, with at least 1 credit transaction on your account every 3 months and at least 3 debit transactions per month during term time (which can include debit card transactions (point of sale), direct debits and standing orders)."

bestpud

atypical wrote: »

"You must use your account as your main current account. This means that the account should be used for the purpose of ordinary banking transactions, with at least 1 credit transaction on your account every 3 months and at least 3 debit transactions per month during term time (which can include debit card transactions (point of sale), direct debits and standing orders)."

Hmm, so where does it say people can't have two of them then?

What's the rationale behind it?

Is it just that the banks may get antsy and withdraw the overdraft?

whitfreak

I think its the fact that "You must use your account as your main current account." is pretty much standard. So having two how can they BOTH be the main ones. A few of them were specific about not having multiple student accounts (or at least did when I was a student).

All of my mates who have had issues with overdrafts being withdrawn on 2 days notice, were people who maxed an account and then left it inactive for a while. So if you manage both accounts (to keep them active) it might be possible to keep it within both sets of T&C's. As you suggest.

But overdrafts are dangerous things to rely on. Even if you keep within the limits etc they are debts on demand. The Bank can demand that you repay immediately, and probably will if they think your taking the !!!!. They need no reason to do this. And even if you get away with it bear in mind that when they turn into graduate accounts both limits will start reducing, as the job market is not exactly healthy.

So it looks in principle its do able. But just remember that that money has to be repaid at some point.

bestpud

whitfreak wrote: »

I think its the fact that "You must use your account as your main current account." is pretty much standard. So having two how can they BOTH be the main ones. A few of them were specific about not having multiple student accounts (or at least did when I was a student).

All of my mates who have had issues with overdrafts being withdrawn on 2 days notice, were people who maxed an account and then left it inactive for a while. So if you manage both accounts (to keep them active) it might be possible to keep it within both sets of T&C's. As you suggest.

But overdrafts are dangerous things to rely on. Even if you keep within the limits etc they are debts on demand. The Bank can demand that you repay immediately, and probably will if they think your taking the !!!!. They need no reason to do this. And even if you get away with it bear in mind that when they turn into graduate accounts both limits will start reducing, as the job market is not exactly healthy.

So it looks in principle its do able. But just remember that that money has to be repaid at some point.

Yes, that makes sense DOH!

I suppose it may be worth the risk for people who put the money into a savings account but probably not for those who need to spend it.