open a few student bank accounts

freebie_junkie

si1503 wrote:

I recently opened my 2nd and 3rd student accounts (with halifax, and lloyds/tsb), for the 2.75k overdraft with halifax, and for the ipod from lloyds (which i never got as i'm going into my 2nd year!), but i'll take the extra free money anyway! The banks don't like it, but I have checked the T&Cs and there is nothing in there to say that you are not allowed bank accounts elsewhere, its not against the law to open a bank account! I have money from the SLC going into my first account (natwest), and then wages going into lloyds and standing order from parents into halifax, however I like the idea of setting up a D/D through them all, i might do that into a 4th account, RBS offering a 2k overdraft is mighty tempting right now!

i dont geddit, you have a student loan, a job and your parents give you regular money for nowt and youre still tempted by a 4th overdraft! im flabbergasted!

freebie_junkie

i wouldnt advise opening several accounts just for teh overdrafts, its not free money, its debt you will have to start payign back after you graduate wether you get a good job right away or not, four accounts could be £10,000+ depending upon what year youre in, how the heck will you pay all that back?! that much debt is a fools game, and trust me you dont 'need' it, i havent used my overdraft and dont intend to and i graduate next august.

si1503

freebie_junkie wrote:

i wouldnt advise opening several accounts just for teh overdrafts, its not free money, its debt you will have to start payign back after you graduate wether you get a good job right away or not, four accounts could be £10,000+ depending upon what year youre in, how the heck will you pay all that back?! that much debt is a fools game, and trust me you dont 'need' it, i havent used my overdraft and dont intend to and i graduate next august.

i think you mean "Fools game"

you misunderstand the fact that over time money loses value, £10,000 now will not be worth £10,000 in 3 years, hence easy money to be made

tobys_mummy_2

i am opening a natwest account for the rail card but want to know if there is a length of time before i could say switch to a different account without them taking the railcard away?

freebie_junkie

si1503 wrote:

i think you mean "Fools game"

you misunderstand the fact that over time money loses value, £10,000 now will not be worth £10,000 in 3 years, hence easy money to be made

i think that youre missing the point that youre not making that ten grand youre getting into debt by that ten grand....odd how little people fear huge amounts of debt! how on earth are you going to afford your first home?

regularsaver1

Halifax have to assess your affordability to increase your overdraft - based on contibutions to the account

so roughly 4 months after opening they can look to increase- usually based on student loan - Sept. jan and april

They would not be too bothered about accounts elsewhere - as long as funds are entering the account

si1503

freebie_junkie wrote:

i think that youre missing the point that youre not making that ten grand youre getting into debt by that ten grand....odd how little people fear huge amounts of debt! how on earth are you going to afford your first home?

odd how some people decide to voice comments on things they don't have a clue about :rolleyes:

regularsaver1

how can you say they know nothing about it?

they are right in that - that is why Halifax assess your affordability for the large overdraft later. 0% is always good - if you repay before paying interest. get maxed (as i did as a student and on silly store cards you learn)

si1503

lets simplify things, you have £1000 at 0% interest, and in 5 years how much will that amount be? "duh duh duh!!" still an amazing £1000! however, if you take that £1000 and invest it at 5% PA, over 5 years that amount will grow to £1276.29, a profit of £276.29, ceteris paribus

its not rocket science, and although £276.29 isn't quite enough to get on the property ladder its more than you would have earned from an untouched overdraft and a wallet-full of store cards

regularsaver1

ah ok - so you invest it, rather that really need it . nice