close or leave the account open?

SavingRookie

I recently (July) opened a Santander student account for the £50 incentive. They gave me a £1000 overdraft even though i specifically said i didn't want one. This month they sent a letter stating they were taking my overdraft off me as they periodically go through accounts and make these changes, it was worded differently but that was the gist of it.

So now I'm stuck with a student account which I have no need for as my main student account is with Barclays. Effectively from next month on my credit rating i won't have the £1000 shown as available so to lenders I'm guessing this will look like a standard bank account not a student account?

I'm kind of going around the houses here but basically what is the best thing here for me to do, leave the account open as applying for a new bank account and then closing it after 2 months looks bad or leave it for a few months? I know its not ideal having 2 student accounts but effectively its just a standard bank account now with now overdraft etc...

Thanks for your help in advance.

Plxply

As far as I know they would have withdrawn your overdraft as you violated the T&C's regarding having only one student account, it's fairly easy to spot as normally students don't have two large overdrafts.

When you say apply for a new account, I assume you're aware you can only have one student account and most likely the exact same will happen?

BASFORDLAD

Wrong.

You can have as many student accounts as you like.

But I would just close it. I will show as settled on your credit file

Gizmo247

Well managed accounts over a long period score well at credit agencies, as does unused or well managed credit, so there can be benefits to keeping a dormant account if it is your longest held account. However this benefit diminishes over time, the longer you hold other accounts.

However it is also worth considering that holding zero balance in any account with no overdraft facility is risky as an unexpected payment (it does happen!) or dormancy fee can push it into un-agreed overdraft and so then you are hit by the double whammy of charges and a bad credit record. If you decide to keep it then hold a reasonable balance in it.

It may be that in the future that your bank will forcibly close your account anyway due to dormancy.

System

I would close and move on asap.

They are a poor bank and you can always open a fresh 'Satander' account at a later stage.

You've had a lucky escape :beer:

innovate

Heng_Leng wrote: »

They are a poor bank

How do you come to that conclusion?

• based on their credit rating with Moodys, Fitch, S&P etc?
• based on their market capitalisation?
• based on the number of retail customers they have?
• based on the interest rates they offer for deposits?
• based on the interest rates they charge for loans and mortgages?
• based on independently verified surveys of student account holders?
• based on debates around their intended charges for business accounts?
• based on their exposure to the eurozone crisis?
• based on their involvement in Libor fixing and money laundering?
• based on a specific personal experience with them?
• based on your comparative experiences with other banks?
• based on Santander-bashing being fashionable?
• based on a hunch?
• based on anything else?

I should be interested how you rate other banks, too (with explanations as to how arrived at your conclusions).

exel1966

As you shouldn't have yet received your £50 incentive it might be a little premature to close your account ?

Can't see why it's a dilemma? If you don't want it, bin it! If you still want it, keep it. An account without an overdraft attached to it has no bearing on your credit record.
You can also open/close accounts very regularly, it has no impact without a credit facility.

SavingRookie

Thanks for all the replies, only just had time to log on and reply myself.

exel1966 wrote: »

As you shouldn't have yet received your £50 incentive it might be a little premature to close your account ?

Can't see why it's a dilemma? If you don't want it, bin it! If you still want it, keep it. An account without an overdraft attached to it has no bearing on your credit record.
You can also open/close accounts very regularly, it has no impact without a credit facility.

The dilemma was that I thought it was detrimenatal for your credit file to apply for a bank account or credit card and close it after 2 months as it shows indecisiveness. As in the lender wouldn't want to give you an account for you to close it after a few months.

Also I thought the £50 was supposed to be paid on July 18th, wondered why I hadn't been paid it.

SavingRookie

Plxply wrote: »

As far as I know they would have withdrawn your overdraft as you violated the T&C's regarding having only one student account, it's fairly easy to spot as normally students don't have two large overdrafts.

When you say apply for a new account, I assume you're aware you can only have one student account and most likely the exact same will happen?

To my knowledge its only HSBC that state your your not allowed another student account, I could be wrong though.

Basil1234

i would suspect the reason the overdraft has been pulled and you havent been paid your £50 is you havent used it as they have wanted.
I think the idea is the £50 is the sweetner for you to move to them lock stock and barrel and they offer the £1000 overdraft same as everyone else. but i suspect they get many people open it up get the £50 and effectively a second overdraft of a £1000 but don't run all there business thru it. i would go have a look a your experian creditfile i suspect it lists who you are with etc etc and the bank will be able to check this.
so they think you are trying the try.
also if i am wrong here sounds like this account doesn't work for you whatever the situation is, so on that alone close it down having lots of differing accounts not in use prob mark you down for anyway.

BugsyBrowne

exel1966 wrote: »

As you shouldn't have yet received your £50 incentive it might be a little premature to close your account ?

Can't see why it's a dilemma? If you don't want it, bin it! If you still want it, keep it. An account without an overdraft attached to it has no bearing on your credit record.
You can also open/close accounts very regularly, it has no impact without a credit facility.

Not true as an OD on a credit file plays a very big part especially when working out your available credit.