Student account + savings

ka7e

Sorry if this has been asked before but nothing turned up in the "search" facility.
If you have a student account with a 0% overdraft, can you transfer your loan/grant etc to a high interest savings account and use the overdraft for expenses? Obviously, transferring monies back, as and when needed to stop the OD being exceeded.

Moonbeam

Don't see why not - similar to credit cards at 0% and making minimum repayments until end of offer.

Sounds quite sensible - just make sure you stick to it

techno_geek

Yep, that's what I've done and there's been no problem at all!

tiptoe_mouse

ka7e wrote: »

Sorry if this has been asked before but nothing turned up in the "search" facility.
If you have a student account with a 0% overdraft, can you transfer your loan/grant etc to a high interest savings account and use the overdraft for expenses? Obviously, transferring monies back, as and when needed to stop the OD being exceeded.

It's probably a good idea, though, to make sure that your loan/grant/wages etc are paid into your student account and not straight into an account elsewhere. This is because if the bank doesn't see funds coming in regularly then it might remove the overdraft facility. You can then move the money straight out again.

I have got away with not doing this with my Natwest account (interest free overdraft limit now reduced to £500 from original £2000 since it's over 2 years since I left uni), but I have a cash ISA with them.

tiptoe