Multiple Student Accounts

darbooka

There have been discussions on the board about opening more than one student account at the same time, and several referred to instances of operating two student accounts simultaneously. What about more than two student bank accounts - is it possible and is there any benefit or disadvantage to this? What is the most student accounts anyone here has had at once, and what was your experience with it?

Clareo

I've got two, friends have had 3 or more. The main benefit is first of all the freebies and 2nd the interest free overdrafts! If you're not in need of cash you can chuck them all in an ISA and benefit from the interest or alternatively put your student loan in Savings and use the overdrafts.

Darren21

darbooka wrote:

There have been discussions on the board about opening more than one student account at the same time, and several referred to instances of operating two student accounts simultaneously. What about more than two student bank accounts - is it possible and is there any benefit or disadvantage to this? What is the most student accounts anyone here has had at once, and what was your experience with it?

I've got 6 - no problems at all, went to uni once and opened 3 then left and started again at a different uni and opened 3 more. You just have to set up a monthly standing order of £20-50 into the overdraft accounts or you will get rude phone calls!!

darbooka

Darren21 wrote:

I've got 6 - no problems at all, went to uni once and opened 3 then left and started again at a different uni and opened 3 more. You just have to set up a monthly standing order of £20-50 into the overdraft accounts or you will get rude phone calls!!

Thanks for the useful info. Darren, in a case such as you describe if the standorder comes from one of the student accounts and goes to the other(s) do any of the banks question why you have another student account elsewhere? Also, when you mention 6 accoutns do you mean at 6 different banks?

Darren21

darbooka wrote:

Thanks for the useful info. Darren, in a case such as you describe if the standorder comes from one of the student accounts and goes to the other(s) do any of the banks question why you have another student account elsewhere? Also, when you mention 6 accoutns do you mean at 6 different banks?

Yes all different banks, it makes no difference as long as you pay money in monthly it never gets flagged up for someone to look into. If your account gets flagged up then they will know wot ur doing and get !!!!ty, otherwise they will never know!

dsk1980

Can i just give a word of warning.

I am a student money advisor at a large University, and have recently been discussing this issue with our local campus banks.
I can assure you that they do not look kindly on students having more than one student acounts (for a number of reasons) and I have also met a large number of students, who have been caught out on this and had the full amount of the overdraft demanded back immediately.
Banks and all companies that offer credit can also tell how many bank accounts that you hold when they do a credit check. In future when you try to get credit you may find it difficult, as a large number of accounts can be seen to show that you are desperate for money, and therefore affect your liklihood of being able to borrow more money.

You may benefit in the short term from this extra money, but never forget that an overdraft is not a form of income, it is borrowed money, and will have to be given back. If you wait until after University, you will eventually start to pay interest on this, and this may be ata a time when you have other financial responsibilities.

Just be careful.
<Lecture over now!!!>

newfoundglory

dsk1980 wrote:

Can i just give a word of warning.

I am a student money advisor at a large University, and have recently been discussing this issue with our local campus banks.
I can assure you that they do not look kindly on students having more than one student acounts (for a number of reasons) and I have also met a large number of students, who have been caught out on this and had the full amount of the overdraft demanded back immediately.
Banks and all companies that offer credit can also tell how many bank accounts that you hold when they do a credit check. In future when you try to get credit you may find it difficult, as a large number of accounts can be seen to show that you are desperate for money, and therefore affect your liklihood of being able to borrow more money.

Not true. They can only see what is on your credit file. Most current accounts (there are very few exceptions) do not appear on credit files, which makes it very easy to obtain multiple student accounts (because on most application forms you only have to declare 1 existing account). Of course, any student doing this should first obtain a copy of their credit file to make sure the accounts they are opening do not appear as accounts (but of course the searches of the file will be on there for 1 year).

student100

newfoundglory wrote:

Most current accounts (there are very few exceptions) do not appear on credit files...

I wouldn't be so sure. Within the last couple of weeks I sent off for both my Experian and Equifax credit reports, both of which show my two current accounts (Halifax and Nationwide).

In fact it was my credit card (Accucard) that only featured on one of the reports (Experian) and not the other. (And my Virgin mobile account appeared on Equifax but not Experian).

Darren21

student100 wrote:

I wouldn't be so sure. Within the last couple of weeks I sent off for both my Experian and Equifax credit reports, both of which show my two current accounts (Halifax and Nationwide).

In fact it was my credit card (Accucard) that only featured on one of the reports (Experian) and not the other. (And my Virgin mobile account appeared on Equifax but not Experian).

In total I have about 10 accounts and only 3 are shown in my full credit report! I agree with newfoundglory!

As long as you are clever you can easily get away with multiple accounts, its only the silly people who leave their account without putting money in.

I know LOADS of people who do the same as me, not 1 problem.

Also my credit score is really good despite having all my accounts! I've never been denied anything, recently got a new credit card, have 4 mobile contracts etc etc

darbooka

And what about all those overseas students who (especially now that the government policy on immigration is toughening up so much) have to leave soon after their studies are over and won't have the extra time in country that UK colleagues do, for paying back the overdraft amounts? Can they be pursued abroad or credit-wise, or are their accounts just written off as bad debts?

newfoundglory

Overseas students aren't given any bank overdrafts (in fact, they are given no credit facilites whatsoever; no full cheque cards for example). They have to be a UK resident of more than 3 years to be considered for an account which offers any sort of credit facilities (some banks won't even do this). This is why foreign students are usually issued with solo and electron debit cards.