Interest free over draft into ISA?

Rypetch

Hello, this is my first post so be gentle

I’m a student, in my first year living at home; I have a student account with an interest free overdraft of £1000 from HSBC. I don’t have any debts and my only out goings are my mobile phone, rent to my mum and running on my car, which is easily covered by my job.

I haven’t been into my overdraft yet and was thinking about putting it into my ISA after April so that it will start to earn me money, do you think this is a good idea?

I would set up another current account for my wages to go into and have all my debts coming out of the one account.

Do you think the bank will let me do this? Will it have any effect on my credit rating? Is there anything else I haven’t considered? Any help would be appreciated

Thanks, Ryan

Chadsman

I think that sounds very sensible That it exactly what I did! Remember to keep paying in an occasional amount into the student accounts.
HTH,
Chad

Darren21

I've also done this - I set up 3 overdrafts at the same time and have now graduated but still have the overdrafts - £3,500 earning interest at 5.15% .

It certainly hasn't affected my credit rating at all - as long as you pay money in every month to the overdraft accounts & don't go over your overdraft limit then you're fine! I've set up standing orders of £50 into each overdraft account every month and as soon as I no longer get the free overdraft I will close the accounts!

I made about £150 in opening bonuses and will earn roughly £600 in interest over 5 years. That's £750 pure profit!