Got one student overdraft, can i get another?

andyw_1987

I have one overdraft with RBS, but I am considering closing the account because of unfair bank charges. Can I open another account with a better overdraft e.g Halifax, whilst still overdrawn with RBS.

I considered trying to pay off the RBS overdraft (£1400) with the majority of the Halifax one (£2000), then closing the RBS account.

I could wait until my loan is recieved in my RBS account, as I will then be in the black (+) so there shouldnt be an issue. However I am eager to claim back Bank Charges and want to open a parachute a/c so I am not in the lurch if they decide to close my a/c.

ANY HELP RE THIS WOULD BE APPRECIATED.

andy

seaweasel

It's usually contrary to a banks T&Cs to have two overdrafts, however it can be done, especially if it's only temporary. I did the same thing, tried to move from RBS to HBOS because of the larger overdraft, however be careful. HBOS have become much more stringent in the OD policies since the merger and the £3000 maximum is rarely given to people opening a new account. It is very unlikely that they'll give you £2000 (probably only £500 initially). I've ended up with two accounts and ODs because of this.

Also, despite the problems I've had with RBS (claimed back £830 from them last year), they're not actually as bad as HBOS when it comes to customer service and while their OD maximum is much less, they're also easier to deal with when it comes to ODs.

On the whole, all the banks are as bad as each other when it comes to charges, and if anything HBOS are worse than RBS. I'd stick it out, and claim your money back after the test cases are concluded. Once you've graduated (or even just paid of your OD), consider moving to Nationwide or Citibank.

Karl.H_2

Nice post seaweasel.
How about paying the overdraft off with a credit card (or Savings), open an account with Halifax or whoever (I have a Student Account with Halifax), and then put the money back you borrowed from the card (or Savings) using your new overdraft.

Is RBS and in the HBOS group?

seaweasel

The Royal Bank of Scotland Group is the main competitor to HBOS (Halifax Bank of Scotland). Apart from RBS, it also includes NatWest, Ulster Bank, Direct Line and other companies.

princesslizzie

I have 2 student accs with overdrafts. I never knew I couldn't! But I don't use one of the overdrafts, I just changed my HSBC current acc to a student account. Didn't know I wasn't supposed to!

Karnam

princesslizzie wrote: »

I have 2 student accs with overdrafts. I never knew I couldn't! But I don't use one of the overdrafts, I just changed my HSBC current acc to a student account. Didn't know I wasn't supposed to!

read your T&Cs you'll find you have broken them.

guardianangel

I used to have three student accounts but now have closed two of them because they started to charge interest for overdrafts. Banks tend to ask to see proof that you are a student - normally your university letter. But I know that I am not the only person whio has a number of overdrafts anyway so...............if you can why now! Just make sure you check your finances and don't go overdrawn too much!

si1503

I have 4 student overdrafts, its a risky business, esp if you get close to your limits, i have gone overdrawn on multiple accounts over recent months, if I only had the one accout this undoubtably would not have occured.

The secret to doing it and doing it successfully is good money management (keep well within your O/D limits, don't be tempted to go too close to the wall like I did) and to ensure that all accounts are active and funded on a regular basis. Stagnant accounts will raise suspicion.

I have not yet being questioned by any of the banks over my accounts as I shift my Student Loan between them, and ensure that my wages and parental contributions are spread/shifted amongst all 4.

guardianangel

Totally agree with si503

pixiedust_2

So.... Did you apply for multiple accounts before you went to uni, or did you spread out applications? I haven't opened any student accounts yet, am still deciding which I want, but had considered opening more than one... Reading the T&C's, very few actually insist on you only having one student account, just that you make a minimum of 3 deposits into the account - surely they can't demand that this comes from SLC, considering that not all students have SLC finance?

b33r

I had two student accounts for my first year of uni, opened a natwest student account at the freshers fair for the free 50 quid, and when I went into halifax (who had been my bank for years) to tell them I needed to stop paying tax on my savings as I wasn't earning and was now a student they changed my current account to a student account without me specifically asking so I didn't bother telling them

I used both overdrafts for the first year but closed the natwest account in second year cus my halifax overdraft went to 2k and that was plenty lol.