just opened up another student overdraft account

lukas89

Hello

I have been browsing this website/forum for a while now although just now I have created an account.

Anyway I was just hoping to get some advice or tips on my current situation.

I've had my Student Overdraft with HSBC for 3 years now (changed uni so have had it longer than others) currently on my Second year; the £1,000 overdraft and the £500 credit card has been maxed out for most of the time.

Anyway my friend told me how last year he had 2 student accounts both of which were maxed out one with hsbc and the other with natwest and he didnt get into any trouble...

So last week I opened up a student account with Santander; they asked me if I had a student account else where I lied and said I have just a normal HSBC account that my Maintenance loan comes in. So they said in order to open up an account with them I need to transfer my direct debits across I agreed (only direct debits I have is gym membership and accommodation).

They have initially given me a £250 overdraft and if I want the £1,250 all I need to do is pay in £500 each term into the account.

What I'm asking is can I pay this £500 from my HSBC account or do I run the risk of HSBC/Santander finding out? I've already transfered my debits across from HSBC to Santander; What are the risks involved here?


Sorry for the long essay.

Thanks in advance!

Voyager2002

There is a significant risk that they will find out. If that happens, both banks are likely to demand repayment of your overdraft: it is a condition imposed by all banks that overdrafts must be repaid on demand, and evidence that a customer is dishonest is likely to trigger this response.

Aelius

Even if you don't get found out, good luck when the banks reduce the overdraft limits the year after graduation.

ani*fan

Hi there :wave:

I did exactly the same as an undergraduate and the banks never found out. At one point I had 4 student accounts, with all overdrafts maxed out. In my opinion, banks don't care really if you have an account elsewhere. Once you're in debt to them, they have you over a barrel and will charge you a fortune in interest once you graduate. It's all more money for them.

Looking back, it wasn't the best way to finance my studies! And probably isn't great for you either. However, there is no way a student loan is enough to live on so what are you supposed to do? I had to work 25 hours a week to make ends meet in my final year. Ended up with a 2:1 but always wondered how it would have been if I'd had enough time to do any study.

Don't worry about them finding out. They won't. And even if they do they probably won't care.

Best of luck.

AFx

Fiddlestick

ani*fan wrote: »

Don't worry about them finding out. They won't. And even if they do they probably won't care.

I'd think again about taking this advice to knowingly submit false applications for student bank accounts.

ani*fan

Just to clarify, my comments are an offer of reassurance and empathy for lukas89 on action that has already been taken.

The advice given was for lukas89 to not worry.

Aelius

ani*fan wrote: »

However, there is no way a student loan is enough to live on so what are you supposed to do? I had to work 25 hours a week to make ends meet in my final year. Ended up with a 2:1 but always wondered how it would have been if I'd had enough time to do any study.

I know SAAS, are a joke, but I've just scraped my way through my 4th year at Stirling with no overdraft, and unable to get a job. Just student loans and a discretionary award - and I live in private accommodation.

atypical

lukas89 wrote: »

What I'm asking is can I pay this £500 from my HSBC account or do I run the risk of HSBC/Santander finding out?

The simple transfer from one bank to another of £500 isn't indicative of anything. The truth is you're unlikely to be 'found out'.

But I'd stress what the majority above are saying. You run the risk of them asking your overdraft to be paid on demand. And you need to think about how you're going to pay them off at the end of your course.

The_One_Who

Aelius wrote: »

I know SAAS, are a joke, but I've just scraped my way through my 4th year at Stirling with no overdraft, and unable to get a job. Just student loans and a discretionary award - and I live in private accommodation.

I never had any issue with SAAS, nor did anyone I know. Also, as far as I am aware it is not them who set the grant/loan amounts, but the Scottish government.

OP, how are you planning on paying these overdrafts off once the free period ends? I know some banks continue to offer a free overdraft as part of their 'graduate account' services, but that will come to an end as well. Surely it is better to get a handle on things now before it starts to spiral.

lukas89

Thank you everyone for your replies appreciate your input

I dont really mind about the burden of these overdrafts as i am planning on paying the majority of them off in the summer. Just need some extra cash real quick and may just pay off my credit card off in one to stop paying off the interest. The only thing I'm worried about is getting busted and one/both banks asking me to pay back the overdraft.

Lokolo

By stopping using your HSBC you run the risk of HSBC withdrawing the overdraft and you owe the whole lot back straight away - or worse, to debt collectors.

And HSBC aren't an easy bank, they are strict.