Overdraft worries due to being out of the UK for 12 months

shoegall

Hi,
I am going travelling for 12 months in December. My main current bank account is Natwest and I am currently living in my £2000 overdraft left over from university. Although I graduated in 2005 Natwest are still not charging me interest on my overdraft.

I am going to open a current account with London based bank Metro because they offer free withdrawls worldwide (on mastercard ATM's).

I was going to leave my travelling money (£8000) in my Natwest savings account and transfer funds required via online banking into my Metro account. I am sightly worried that Natwest would become alerted to the fact that my wages were no longer going in and therefore, ask me to repay my overdraft so I thought I could set up a few standing orders a month between my accounts so that there is still some activity. I am also worried that if Natwest can see that I have £8000 in my savings account, they will be more likely to ask me to pay back the overdraft. Due to this worry I am thinking about putting the £8000 in my other Halifax current account.

Could anyone offer me any better advice? Basically I want to get away with having my Natwest overdraft at minus £2000 for 12 months. Is this possible?

jen245

If you graduated in 2005, I think your lucky they havent twigged before now!! :eek:

young_money_saver

why don't you pay back your £2000 overdraft if you have £8000. 5 years is a very long time, especially if you plan to keep it like that for another year. if you studied for 4 years + the last 5 years + another year for travelling, thats 10 years with the £2000 overdraft. I would pay it off.

jen245

Why havent you paid it off before now? Id want to go travelling knowing that I dont have any debt to worry about. Id pay it off, and either go with 6000, or save a bit longer and go next year.

shoegall

Changing the travel plans is not really on option. If nobody can offer any advice, could you advise how much interest I should expect to pay per month if they clock on?

shoegall

If I topped up my account so the balance was zero (in the hope that I don't actually need the extra £2000 while i'm away) can the bank take the overdraft away without my authorisation?

jen245

The bank can remove the overdraft whenever they want and demand repayment in full.

ahmadali

Anyone have any ideas? Based on the assumption that Shoegall doesnt top her account up what is the likelyhood that her bank will demand repayment so long as there is *some* activity on the account????

stclair

The OP just needs to remember overdrafts are repayable on demand and the bank have the right to offset from there savings account.

If OP ensures that there is some money being paid into the account now and again it wont set any alarm bells ringing hopefully.

CLAPTON

lets think about it

just suppose they do demand the OD is cleared whilst you are travelling

will you be able to clear it?

if not then its likely that they will
-add charges and fees to your a/c
-default the a/c
-trash your credit records for the next 6 years

whether or not it is likely is just a guess; would the travelling be worth that?

woozywendy

If you have an O/D are part of the terms that you have some regular credits paid into the account ?