bank and student question

millwalll

Hi all just open a new bank account what says I need to put £500 in month that is ok because I am working still but when I leave work I want go uni what do I do then Will they close my account ?

Sooler

Withdraw £500 and pay it back in.
Or withdraw £250 and pay it back in - twice
Or withdraw £167 and pay it back in - thrice etc.

dmg24

Yep, otherwise you need to check your t & c's, many banks will charge you an underfunding fee.

millwalll

i see so jsut put 500 in then and withdraw it each month and pay in back in

Compound_2

dmg24 wrote: »

Yep, otherwise you need to check your t & c's, many banks will charge you an underfunding fee.

I don't think this is very common, although this might change after penalty charges are declared unlawful. Normally underfunding just leads to a lower rate of interest. The worst that could happen is they write to you to talk about reviewing your facilities.

Karnam

check that this is ok. some banks say the money has to come in from earnigs, some sort of mandated source.

dmg24

Compound wrote: »

I don't think this is very common, although this might change after penalty charges are declared unlawful. Normally underfunding just leads to a lower rate of interest. The worst that could happen is they write to you to talk about reviewing your facilities.

You are thinking of a different type of account. The type that you are thinking of, are the ones where the rate of interest varies according to the amount that you put in.

The OP says that his bank says that he must put in £500 a month. For this reason, he probably gets better benefits from the account. In these cases, an underfunding fee can apply.

karnam raises a very good point also.

All banks vary, and the only way is to check the t & c's for the particular account.

JoeA81

What bank have you joined that needs you to put £500 in a month? Why not just get one of the many current accounts specially set up for students? You will get many more benefits, including interest free overdrafts and sweeteners like free gifts etc.

Sooler

Compound wrote: »

I don't think this is very common.

A & L do it, £10 or something unless you pay in £500, any £500 will do, they don't require it to be salary.