Can I do this?

charlie792

Im in my final year of University and have been with Natwest the entire time - I had to admit Ive made full use of my overdraft (as my loan just isn't enough), I am still overdrawn on my Natwest account but in Jan I get my loan which will pay off the overdraft. Now here is where I need some help - I have another account with HSBC - a joint account with my partner and a savings account for myself. What I want to do is to open a student account with HSBC - (Natwest have really messed me around), now 1) would I be able to open a new student account so late in the year - only 5 months or so left of uni. 2) if I did would I be entitled to the same overdraft amount as any other 3rd year student or would it only be 1st equivalent as Ive only just opened the account with them.

jambosans

First off, just to clarify, would you be planning to close the NatWest Student Account when the overdraft is settled in January? I ask, because you cannot have more than one student account.

charlie792 wrote:

1) would I be able to open a new student account so late in the year - only 5 months or so left of uni.

If you do plan to close your existing student account, then yes, you can open an account with HSBC. Below is a link to the eligibility criteria:-
http://www.hsbc.co.uk/1/2/personal/current-accounts/student-banking/student-bank-account/get-started?HBEU_dyn_lnk=Student_ProductPage_Apply_Button#eligibility

charlie792 wrote:

if I did would I be entitled to the same overdraft amount as any other 3rd year student or would it only be 1st equivalent as Ive only just opened the account with them.

If you're in 3rd year then the HSBC website states you can apply for a maximum overdraft £1500 (subject to status). It specifically states "Your maximum interest free entitlement goes up each year you study:" rather than each year you bank with them. So I would assume you can apply for the 3rd year level of overdraft.

On a side note, unless NatWest have done something cataclysmically wrong, I would stick with them, for a number of reasons:-

1. NatWest (IMO) offer a better Graduate Bank Account (mainly a larger interest free overdraft for up to 3 years).
2. Most importantly, you mentioned holding a joint account and savings account already with HSBC. If you fall into serious debt with your HSBC Student Account overdraft, and, for example, you default, HBSC can off-set the balances from your savings or other in-credit accounts (including joint accounts). It's standard practice across the industry, so best advice is always to get your debts separated from deposits between banking groups (e.g. RBS Group includes NatWest and RBS).
3. There is no guarantee HSBC will offer you the same level of overdraft you have with NatWest.
4. If you have Direct Debits, or bill payments you have to consider switching them (along with your student loan etc.). HSBC do offer a switching service, but you still have to keep an eye on the transfer process.

charlie792

jambosans wrote: »

First off, just to clarify, would you be planning to close the NatWest Student Account when the overdraft is settled in January? I ask, because you cannot have more than one student account.

On a side note, unless NatWest have done something cataclysmically wrong, I would stick with them

Yes I was planning on closing the Natwest account - their service has been terrible over the last few months, including the fact that they blocked my account after someone else had told them my card had been stolen (Worrying enough in itself!), rendering my account useless - there is me trying to use my card and wondering why it won't work, Im lucky I didn't get arrested for using a 'stolen card'. They said they would sort it, which left me without a working bank account for 3 weeks, and they didn't exactly seem concerned by the fact that this had happened - They said it might have been a 'mistake' and to not worry about it if my money was all there. There has been other instances also, but I don't particularly want to stay there because I honestly worry about their security measures - if someone can cancel my card without my knowledge then I wouldn't say my account was very safe, Ive changed my address with them too before and they never asked for any proof.

HSBC is also open at the weekend and is one of the only banks in the town to be, makes it a lot easier to get things sorted out.

jambosans

charlie792 wrote: »

- if someone can cancel my card without my knowledge then I wouldn't say my account was very safe

I disagree.

This is common practice across the industry, and I wouldn't be surprised if HSBC do the same. The logic is, there is very little risk in cancelling a debit card at the request of a 3rd party. Many banks will not directly acknowledge an account exists, or provide specifics on the account the card is link to, but simply cancel the card. I don't think it is unreasonable to take it in good faith that if a 3rd party is reporting a theft, or loss, they are genuine.

I'd like to think if I lost my debit card, and it were found (say, in a shop), someone would be diligent enough to contact my bank and report it lost. The fact there has either been a mistake or someone has maliciously cancelled your card would appear to be a rare exception to this otherwise pro-active practise.

charlie792

jambosans wrote: »

I don't think it is unreasonable to take it in good faith that if a 3rd party is reporting a theft, or loss, they are genuine.
The fact there has either been a mistake or someone has maliciously cancelled your card would appear to be a rare exception to this otherwise pro-active practise.

The point was they said it was ME who had reported the card stolen not somebody else - the bank didn't seem at all concerned that it wasn't me and they had let a complete stranger do this - how the hell they had my account or card number in the first place worries me immensely. All my bank statements are done online, I only ever shop at trusted sites and my computer has no viruses. There is only one person who has any access to my account or card information is my OH and I know for sure he didn't do it.

jambosans

charlie792 wrote: »

The point was they said it was ME who had reported the card stolen not somebody else

You're contradicting yourself.

charlie792 wrote: »

they blocked my account after someone else had told them my card had been stolen

If this is the case, my previous post stands; if NatWest were claiming you cancelled the card, I find that hard to believe (and would be interested to know how NatWest substantiated this fact) - if NatWest are similar to every other bank I've dealt with, any 3rd party can call up and report a card stolen, this is just an indicator placed on by the advisor.

charlie792 wrote: »

how the hell they had my account or card number in the first place worries me immensely.

As I said before, a bank will confirm very little/ nothing, when cancelling a card on the request of a 3rd party. Therefore, you may find your bank can take other details, such as name and address. Often, the risk associated with cancelling a card is so negligible it is worth taking the bare minimum of details (without confirming anything) in order to prevent a customer being defrauded. The reality is, a fraudster is unlikely to phone and simply cancel a card. A new card is not always issued until the customer calls and passes relevant security or visits branch with ID.

If you had said, someone contacted NatWest, cancelled your card, changed your address, and had a new card issued, I would have more sympathy. Otherwise I think it's been an unfortunate situation but you can hardly blame NatWest for. Mistakes happen, and this policy clearly exists with the best of intentions.

You obviously see red with NatWest, and if you've had other problems, then by all means move. The point I'm trying to make (attempt number 2 now) is that don't expect HSBC to deal with the aforementioned scenario any differently.