Opening a second student account

MegaGary

I am a second year student with a maxed out overdraft with Lloyds. I am in desperate need of around 200-300 pounds and understand that many people open several student accounts so that they can claim more 0% overdrafts and that this is not illegal, nor banned in certain banks T&C's.

That link shows me that lloyds will not allow me to do this, but I was wonder whether they would find out if I kept half my loan in one bank and half in the other, just so they saw some sort of money coming in each term. (wont let me display link as a new user, but it is one from this site)

I have a meeting about setting up a new account and hopefully an overdraft with santander on tuesday, is this likely?

Is there any way I can switch banks (bearing in mind my £1500 debt to Lloyds) to a different bank that doesn't condemn me opening another student account in their T&C's. Thanks!

MegaGary

Extending my overdraft at Lloyds is also not an option as my credit rating is bad due to me not using my student account, the money goes into my classic account with lloyds, meaning I have only ever withdraw from the student.

Hazzanet

Generally you cannot open two student accounts as they have procedures in place to prevent you from doing so, even with another bank. When I had a student account years ago, it was done by the bank stamping your original loan confirmation; I assume it's more high-tech now. This system makes sense, so you don't come out of Uni wtih two or three £3k overdrafts.

The fact that you bumping against the limit of your overdraft facility suggests that you are having problems with money. It may be worth looking at the debt free wannabe board, or speaking with your students' union - many have emergency loan funds available and can advise you on how to work around your money problems.

Also consider whether a part time job is an option? This worked pretty well for me as I only worked Sundays at a supermarket which didn't impact on the course at all.

jon142

FYI I have had for 5 years;

Natwest - £1150 OD. - RBS & Natwest knew i had both account.

RBS - £1400 OD. - RBS & Natwest knew i had both account.

HSBC - £750 OD

Barclays - £ 1500 OD.

All overdrafts. all student accounts nobody battered an eyelid, paid back due to 0% period ending. earned about £900 in intrest over the 5 years. all put into an ISA with Barclays Fixed for 5 years @ 6% i think it was.

InsideInsurance

Back in my day your student loan/ grant had to be paid into your student current account which in itself in theory prevented you from having multiple accounts. In practice people did have multiple accounts by making false declaration that they werent taken one/ not eligible on the secondary accounts.

All I knew got away with it during their student days but many struggled when they then only had 12 months to clear them all before they became interest incurring.

I agree with others, rather than looking to get more into debt I think you should try and fix the root cause of your financial difficulties

~Chameleon~

Is it actually illegal to have more than one student account? I have three current accounts but only one has been converted to a student account so far (my main account and the one my loans/grants will be paid into). Could I potentially convert the others to student status too? As far as I'm aware I only need to show my SF paperwork as proof of student status.

davethorp

It isn't illegal though it is usually in the terms and conditions that it has to be your main account and the account your main income such as your student loan is paid into in order to qualify for the overdraft

MegaGary

The interview is tomorrow for the new Natwest account. Will they let me start the overdraft even though my loan wont come in until september? Would have the overdraft (obout 750) be enough money for them to not think about other accounts?

MegaGary

*Would the loan (1500 split into two accounts) be enough coming into each account for them to see it as my main account

MegaGary

P.s. I also have a classic account with Lloyds which is the only one I use and the one my loan goes into

InsideInsurance

They can see where the money comes from, will the student loan company (or whatever they are called these days) allow you to get them to split the payment between accounts?