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Student Overdraft Question.
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rb6k
Posts: 53 Forumite

Probably the wrong thread again... Anyway its only an odd question here to verify something.
You have all probably seen the new Halifax overdraft Martin Lewis advertised on here, £2750!! I almost RAN to my nearest Halifax to move my Natwest account over and they were very obliging.
When i was finalising everything i said to the bank manager, "So what do i do about Natwest, do i have to close the account?" as i was told it was illegal to have two 0% interest student overdraft accounts. He told me it wasnt illegal to have two overdraft accounts with seperate banks and that id probably only been told that to stop me going to other banks and getting more money out!!
So currently i have my Natwest overdraft spent, and im in the process of getting my Halifax overdraft created. I always intended to use £1250 of the Halifax one to pay back the Natwest one so that they could not say i was frauding them. But now i am confused as to wether i legally have to do so as i am doing a Nursing course so i am well able to pay back both overdrafts with my bursary if and when need be, and once im qualified i will be getting a full wage through so it would take me 8 months to pay back both of them (assuming they were both fully spent which is unlikely!)
So erm the question is, is it illegal to have two 0% interest student overdrafts or was i being lied to. Do i need to close my natwest account asap to avoid being caught out or was this all a big student myth supported by banks to ensure buisness is kept to single companies?
Also how does each bank know if im with another bank?! Its not like Natwest have a record of all Halifax's account holders, that would easily allow for customer poaching etc.........
Hope your infinate wisdom can help me!
You have all probably seen the new Halifax overdraft Martin Lewis advertised on here, £2750!! I almost RAN to my nearest Halifax to move my Natwest account over and they were very obliging.
When i was finalising everything i said to the bank manager, "So what do i do about Natwest, do i have to close the account?" as i was told it was illegal to have two 0% interest student overdraft accounts. He told me it wasnt illegal to have two overdraft accounts with seperate banks and that id probably only been told that to stop me going to other banks and getting more money out!!
So currently i have my Natwest overdraft spent, and im in the process of getting my Halifax overdraft created. I always intended to use £1250 of the Halifax one to pay back the Natwest one so that they could not say i was frauding them. But now i am confused as to wether i legally have to do so as i am doing a Nursing course so i am well able to pay back both overdrafts with my bursary if and when need be, and once im qualified i will be getting a full wage through so it would take me 8 months to pay back both of them (assuming they were both fully spent which is unlikely!)
So erm the question is, is it illegal to have two 0% interest student overdrafts or was i being lied to. Do i need to close my natwest account asap to avoid being caught out or was this all a big student myth supported by banks to ensure buisness is kept to single companies?
Also how does each bank know if im with another bank?! Its not like Natwest have a record of all Halifax's account holders, that would easily allow for customer poaching etc.........
Hope your infinate wisdom can help me!
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Comments
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People always said this to me and I never was sure where they got this information from, I currently have 2 student overdrafts and am about to go for a third (have had the first two for 2 years).
Don't see what law its breaking as I informed the second one that I had the first when taking it out so have not withheld any information.0 -
Im confused.. I am with halifax and had £1000 overdraft in year 1.. what can I have in year 2 then? £2750? whats all this?
Thanks[FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
- Bob Dole, Republican presidential candidate[/FONT]0 -
MercilessKiller wrote:Im confused.. I am with halifax and had £1000 overdraft in year 1.. what can I have in year 2 then? £2750? whats all this?
Thanks
I'm guessing you've read the MSE artical and been to the HBOS website then...April Grocery Challenge £81/£1200 -
I havent read any articles
just this thread and seen Halifax overdraft Martin Lewis advertised on here, £2750
Can someone explain?[FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
- Bob Dole, Republican presidential candidate[/FONT]0 -
I'm guessing the HBOS website will have a succinct explanation, and details on older accounts...April Grocery Challenge £81/£1200
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http://www.halifax.co.uk/bankaccounts/student.shtml?online2
says nothing about current student accounts
thing is its best I dont get it I think just so I know what i can spend etc..[FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
- Bob Dole, Republican presidential candidate[/FONT]0 -
Then call them... No one can advise you like they can...April Grocery Challenge £81/£1200
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Can this 'can I have two accounts?' (with or without the word legally) be added to wirm's sticky thread on this forum.
This is the most asked student subforum question .... Martin answers it on his article but perhaps it needs to be a sticky as well.0 -
I dont advise any students to get 2 accounts.. 1 account and 1 job should be enough :S[FONT=Arial, Helvetica, sans-serif]"The internet is a great way to get on the net."
- Bob Dole, Republican presidential candidate[/FONT]0 -
IMHO, the easiest way to maintain two student accounts and therefore get two authorised overdrafts is to pay your loan in to one, and part time work earnings in to the other. This usually satisfies their 'official' terms and conditions/small print...April Grocery Challenge £81/£1200
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