Investing interest free savings overdrafts into high interest savings account?

gb224050

Firstly, hello everyone, im new to this board!

Forgive my ignorance, I am fairly new to the world of savings accounts etc, and am currently, with the help of this great site trying to maximise my savings.

My question: Could I open a number of savings accounts with interest free overdrafts, take out the overdrafts and invest in a high interest savings account?

What would be the problem with this? Sounds like an idea too good to be true? Would my credit rating be effected?

Thanks for you help

David

grumbler

gb224050 wrote:

My question: Could I open a number of savings accounts with interest free overdrafts, take out the overdrafts and invest in a high interest savings account?

Welcome.
Interest-free overdraft can come with current, not saving account. Only a few current accounts offer interest-free overdraft. It is usually quite small as £250 from cahoot for example. Higher interest-free overdraft usually comes with account that demands at least £1000 monthly credit (A&L Premier Plus Current Account - first 12 months only). This is a big headache and you cannot earn a lot. Using 0% introductory offers for credit cards is a better idea. Look through CREDIT CARDS board for ‘stoozing’ and related articles on this site.

ukric

unless u can open a student account theres not really much point, either that or if your 'switching' accounts some banks will give int free overdraft for a period of time but if you drew the whole lot out and there werent any credits they might not look too kindly on it.

Overdrafts are repayable on demand wiht most banks I know.

gb224050

Ok thanks for you advice, I have just actually opened a Cahoot account, and i do have a student account, but i have already maxed out that overdraft facility!