student 0% overdraft and stoozing

sazdes

Hi,
I have a student account which gives a £1500 overdraft at 0%, I was considering stoozing this in a savings account to make interest on it, but wanted to check whether being seen to be constantly using my overdraft/never being in credit would a) show up on my credit rating and b) have any negative effect on future mortgage applications etc?

Thanks!

DragonQ

I've maxed out my overdraft for the same reason (both with a Student account and Graduate account) and haven't had any issues.

You-kip

sazdes wrote: »

Hi,
I have a student account which gives a £1500 overdraft at 0%, I was considering stoozing this in a savings account to make interest on it, but wanted to check whether being seen to be constantly using my overdraft/never being in credit would a) show up on my credit rating and b) have any negative effect on future mortgage applications etc?

Thanks!

Stoozing with £1500 you realise at todays rates that's 50p a week.

sazdes

Thanks.

I do have more money than that in savings for stoozing, was just considering adding the overdraft money to it, as rather than it being in a current account paying 0% I might as well get 5% with nationwide

It makes an extra £75 per year anyway so £1.44pw

You-kip

sazdes wrote: »

Thanks.

I do have more money than that in savings for stoozing, was just considering adding the overdraft money to it, as rather than it being in a current account paying 0% I might as well get 5% with nationwide

It makes an extra £75 per year anyway so £1.44pw

Well you'll be getting 4% not 5%.

sazdes

You-kip wrote: »

Well you'll be getting 4% not 5%.

how come? I'm a student so don't pay tax if that's what you're thinking?

innovate

sazdes wrote: »

I'm a student so don't pay tax if that's what you're thinking?

Only if you have filled in an R85. Otherwise the bank/BS will withhold 20% automatically.

BTW, being a student is not a valid reason for being tax-exempt. From the day you were born, or become a UK citizen otherwise, you have to pay tax in the UK if your income is higher than the personal allowance.

sazdes

Yep, I know and have had r85 forms with all my savings accounts for years so haven't paid tax on my savings (hence saying I would get 5%)

I know being a student doesn't exempt you from tax but its significantly shorter to write "because I'm a student" than writing "because my university hours are far too time consuming, and my university forbids you from working during term time, I do not earn enough money to have to pay any tax" lol

DragonQ

innovate wrote: »

Only if you have filled in an R85. Otherwise the bank/BS will withhold 20% automatically.

BTW, being a student is not a valid reason for being tax-exempt. From the day you were born, or become a UK citizen otherwise, you have to pay tax in the UK if your income is higher than the personal allowance.

Hehe you think any students earn above the personal allowance threshold?

Lokolo

Be aware that overdrafts can be withdrawn at any time, so make sure the money is available to be taken out. (I realise NW offer is a current account, but just to make you aware!)

sazdes

yep all either in current accounts paying high interest or instant access esavers so thats not a problem

so is the consensus it won't have a negative impact/be visible on my credit rating that I'm always "using my overdraft"?

thanks again