Multiple Bank Accounts....Is it allowed?

GothicStirling

It's actually illegal to hold more than one student bank account.

I know people who have done this, but it isn't a good idea as a year after you graduate, these guys want their money back and can be quite aggressive. I'm graduating in June, and wish I didn't take out an overdraft when I learned that if you are constantly living in your overdraft, your credit rating is shot to pieces.

If you are struggling to live on you're current income, I suggest looking at why that is. Don't do what I did, and rack up £12,000 in debt with c/c, catalogues and overdrafts while at uni.

melancholly

GothicStirling wrote: »

It's actually illegal to hold more than one student bank account.

technically, it's just against the T&Cs rather than illegal and it doesn't actually apply to all banks

http://www.moneysavingexpert.com/banking/Student-bank-account
this article summarises whether you can have more than one account, but it may change for 2011-2012 (updates won't be ready until the summer).

either way, it still isn't advisable to have lots of student accounts, with all the many and varied reasons laid out already!

methodicalmadness

Guys thanks for your help. You have perhaps helped me dodge a bulet there!
My problem really comes down to getting debt that doesnt have crazy stupid amounts of interest attached to it. Second degree, no loans from SLC. May have to start looking seriously at these CDL's!
Thanks again!

rozmister

Don't take more than one overdraft unless you are like starving and dying.

I took lots in my 1st year and I am now manically trying to pay them off before I graduate. You also have to keep money flowing through every account else it goes to collections who demand you put money in right then and then reduce your overdraft by a bit. You also have to pay a certain amount per year when you graduate to have a graduate account and the more reasonable interest rates, with most banks this amount is £1000 a year. So if you take 3 £1,500 overdrafts you need to find £3,000 to pay them off in your first year of graduation, a tall order. Plus it's against the T & C.

matj16

There was a TV program on this a few years back, a guy did exactly as your think and ended up bankrupt.

It's not advisable and is also against the T & C's like many others have mentioned. The legality of it is also questionable.

amiehall

I don't understand why people are so against this. Obviously don't spend the money unless you really really need it for essentials like food and housing but if you do need the money, there isn't a cheaper way to get it than to use a student overdraft. You should definitely explore these before taking out expensive and inflexible CDLs.

tommyjoeybirchie

I have two student accounts with the full overdraft with each. I have a standing order paying a certain amount between the two twice a month. I am not compromising any terms and conditions, which I have checked. If you have your emergency contingency then I'd just go for it.

the-mango

GothicStirling wrote: »

It's actually illegal to hold more than one student bank account.

I know people who have done this, but it isn't a good idea as a year after you graduate, these guys want their money back and can be quite aggressive. I'm graduating in June, and wish I didn't take out an overdraft when I learned that if you are constantly living in your overdraft, your credit rating is shot to pieces.

If you are struggling to live on you're current income, I suggest looking at why that is. Don't do what I did, and rack up £12,000 in debt with c/c, catalogues and overdrafts while at uni.

Is the fact that you are always in your overdraft mean you worsen your credit rating?

I have two student accounts which are both overdrawn nearly to limit as I have the money in savings accounts. I could easily live without either overdraft. Should I put the money back into my student accounts?

Thea

Please, whatever you do dont do this!

I had 2. Its great at the time, and you'l have big ideas on how your going to pay it back. I got ill and could not work, now i have a ccj. Someone else i knew was bankrupt at 25. She managed to get 4, plus credit cards and store cards ans she did not even finish her degree....


No its not illegal, but it wont end well. If i had my time again i would not have even got one overdraft.

Just think!

methodicalmadness

Toooooo be fair....taking it from a slightly different perspective....and I encourage this idea to be torn apart if need be, but how about this:
If you have a choice between a CDL, and more than one overdraught, as long as ur not breaking any T&C's the overdraught might be the better option.
On this here lovely website there is a section on CDL's. Martins advice is, if you have one, to take out the best unsecured loan you can get after the one month interest holiday is up, to get a better more managable interest rate.
On the ohter hand, say you have two or more overdraughts. You have an entire year to pay this up, with no interest involved. If you have not paid them up by the end of the year, to avoid crazy interest rates, you could do exactly the same thing as Martin suggests you do with the CDL's, and get the best unsecured loan to pay off the rest.
I'd say a year beats a month....
Thoughts?