student 0% overdraft and stoozing

Herbalus

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!

You should be aware that most student accounts have usage T+Cs i.e. you need to use your debit card 3 times a month (Natwest for example). The aim is to make sure you use your account and do not simply abandon it for a year after 'borrowing' £1500 of their money. So the right is reserved not only to make the overdraft payable on demand but also to ensure you still use the account. Do you know if your account has T+Cs like this?

I'm not sure how this works in practise and if anyone has experience of a bank demanding instant repayment from a student, but you may want to bear this in mind.

If you still need to use the account to get the overdraft, obviously the more you move elsewhere the better you have to manage your account. Move £1300 of a £1500 limit and you only have £200 to play with. Move £1400 and that gets smaller.