Student overdraft query

georgiaclairepatrick

Hi all, I apologise in advance if this is in the wrong thread!

I was hoping someone could help me. I started my undergrad course in 2010, I immediately got a student account with HSBC with a 1000 overdraft which i've been constantly in and out of throughout my undergrad. I graduated in 2013, and I received a letter from the bank stating that my account was being changed to a graduate account. The letter also stated that i'd still have my overdraft for 2 more years, which will be till july 2015.

I decided to go back to uni to do my PGCE in Primary education which I started in September last year. I informed the the bank, and I had my account changed back to a student account. I specifically said to the adviser that the reason I had it changed is because I don't want the overdraft to be closed in July, as I will need the overdraft to support me financially from July (when my student finance money runs out) till september (my first pay cheque from my teaching job, thats if I get one!). I asked if the same terms still applied once I graduated, so my student bank account will change to a graduate, then I will have 2 years before it closed. I'm pretty sure she said yeah, but now i'm worrying . I can't remember for sure, and I don't have anything in writing stating these terms....

I rang an advisor from the bank and asked them when it was due to close, I don't think she really understood what I was asking. All she said was that it will be reviewed in September and then I will be notified if the overdraft will be closed or not, and if its going to be closed, I will be given 2 months notice. She didn't really seem to understand English very well, so I didn't ask her to clarify....

I was wondering if anyone could help me clear this up? I don't know if I will still be entitled to the 2 year graduate account with the overdraft because this is the 2nd time i've had a student account with HSBC. (i'm sorry if this is confusing!)

All I need is an overdraft (which doesn't charge me interest) to help me with the couple of months after i've graduated, till I get my first pay check. Then I will be fine! Ahhh!

Thanks in advance!

Ed-1

georgiaclairepatrick wrote: »

Hi all, I apologise in advance if this is in the wrong thread!

I was hoping someone could help me. I started my undergrad course in 2010, I immediately got a student account with HSBC with a 1000 overdraft which i've been constantly in and out of throughout my undergrad. I graduated in 2013, and I received a letter from the bank stating that my account was being changed to a graduate account. The letter also stated that i'd still have my overdraft for 2 more years, which will be till july 2015.

I decided to go back to uni to do my PGCE in Primary education which I started in September last year. I informed the the bank, and I had my account changed back to a student account. I specifically said to the adviser that the reason I had it changed is because I don't want the overdraft to be closed in July, as I will need the overdraft to support me financially from July (when my student finance money runs out) till september (my first pay cheque from my teaching job, thats if I get one!). I asked if the same terms still applied once I graduated, so my student bank account will change to a graduate, then I will have 2 years before it closed. I'm pretty sure she said yeah, but now i'm worrying . I can't remember for sure, and I don't have anything in writing stating these terms....

I rang an advisor from the bank and asked them when it was due to close, I don't think she really understood what I was asking. All she said was that it will be reviewed in September and then I will be notified if the overdraft will be closed or not, and if its going to be closed, I will be given 2 months notice. She didn't really seem to understand English very well, so I didn't ask her to clarify....

I was wondering if anyone could help me clear this up? I don't know if I will still be entitled to the 2 year graduate account with the overdraft because this is the 2nd time i've had a student account with HSBC. (i'm sorry if this is confusing!)

All I need is an overdraft (which doesn't charge me interest) to help me with the couple of months after i've graduated, till I get my first pay check. Then I will be fine! Ahhh!

Thanks in advance!

So 2010/11, 2011/12 and 2012/13 you were an undergrad student and had a HSBC student account with an overdraft limit of £1000. On 31st July 2013 that will have changed to a graduate account which has an interest-free limit up to £1500 in the first year and an interest-free limit up to £1000 in the second year so in 2013/14 your £1000 limit was still interest-free.

You changed your graduate account back to a student account for 2014/15 for a 1 year PGCE course. The £1000 limit stays interest-free. It will automatically convert back to a graduate account on 31st July 2015 and then the first year and second year your £1000 limit stays interest-free until 31st July 2017 when it will be converted to a standard bank account.

georgiaclairepatrick

Ed-1 wrote: »

So 2010/11, 2011/12 and 2012/13 you were an undergrad student and had a HSBC student account with an overdraft limit of £1000. On 31st July 2013 that will have changed to a graduate account which has an interest-free limit up to £1500 in the first year and an interest-free limit up to £1000 in the second year so in 2013/14 your £1000 limit was still interest-free.

You changed your graduate account back to a student account for 2014/15 for a 1 year PGCE course. The £1000 limit stays interest-free. It will automatically convert back to a graduate account on 31st July 2015 and then the first year and second year your £1000 limit stays interest-free until 31st July 2017 when it will be converted to a standard bank account.

Thanks for your very swift reply! So they will definitely honor the 2 years interest free overdraft after I graduate in July? Even though this is my 2nd student account with them?

Ed-1

georgiaclairepatrick wrote: »

Thanks for your very swift reply! So they will definitely honor the 2 years interest free overdraft after I graduate in July? Even though this is my 2nd student account with them?

Yes it's an automatic process; I've previously done the same with the same account - once for undergrad and again for a PGCE just like you. Student account converts to graduate account.

grumbler

georgiaclairepatrick wrote: »

...So they will definitely honor the 2 years interest free overdraft after I graduate in July?

They don't have any obligations to give you 0% overdraft with a student account and to 'honor' or guarantee anything.
All overdrafts are repayable on demand, including 0% ones.

Ed-1

grumbler wrote: »

They don't have any obligations to give you 0% overdraft with a student account and to 'honor' or guarantee anything.
All overdrafts are repayable on demand, including 0% ones.

They don't have to honour anything technically, but if the overdraft limit remains in place (which it should) it will be interest-free due to the student account converting to a graduate account.

georgiaclairepatrick

Ed-1 wrote: »

Yes it's an automatic process; I've previously done the same with the same account - once for undergrad and again for a PGCE just like you. Student account converts to graduate account.

Thanks, so you had the HSBC account? I think i'm going to talk to a representative in a branch and try to get it in writing.

Ed-1

georgiaclairepatrick wrote: »

Thanks, so you had the HSBC account? I think i'm going to talk to a representative in a branch and try to get it in writing.

Yes. My overdraft limit has been £1500 from the outset.

HSBC student account for 4 years which converted to a graduate account on 31st July of the year after I graduated; then I completed an MSc and converted it back to a student account. It then converted to a graduate account on 31st July after I finished the MSc. I then did a PGCE and converted it back to a student account in the second year of the graduate account and it converted back to a graduate account on 31st July last year. Throughout the whole time I've had a £1500 overdraft which I've stoozed (except for when the graduate account entered a second year when I reduced the balance by £500 as only the first £1000 is interest-free in the second year).