Overdraft? should i get it?

tasticz

Hi there!

I have just changed my normal account to student additions account. I currently bank with barclays. So i recieved a £200 instant overdraft for opening a student bank account and i believe they give up to £3000 however first £2000 interest free?

Should i apply to get my over draft increased to £2000? Because they say its interest free does that mean I won't pay anything for spending their money? i know i will have to pay them back what i mean is any extra charges

like If i have £0.00 on my account with £2,000 overdraft and i spend £2000 i won't have to pay anything extra fees or admin charges? if yes how long does this last for? is this until i am a full time graduate student? I am really confused now

thanks!

Tixy

If you want to apply for a larger overdraft it is subject to circumstances and you may not be offered a £2000 limit (you may not be accepted for anything more than the £200).

That account is fee free, if you keep with the terms. So if you only use up to the max of your interest free overdraft then it would cost you nothing whilst it is interest free

If it is interest free and you need to borrow money then it may well be a sensible option. If you don't need it then I wouldn't apply for it. Also remember that overdrafts are always repayable on demand, which means you could potentially be asked to repay at any time (e.g. if the account is not well managed).