Stoozing Advice

timWebUK

Hi there,

I am about to start University at the end of September, and I read on the website YouGoFurther (where Martin Lewis had posted an article with regards to stoozing) about stoozing.

I currently have a standard current account with Nationwide, but I have just opened a student account with Lloyds TSB, which has an 0% interest overdraft facility. This is tiered over the year, starts at 500, then 1000, then 1500.

Is it really as simple as, go overdrawn with them (but not over the limit) by transferring my money into my E-savers account on Nationwide? (higher interest than a tax-free ISA, hey I'm a student, I don't pay tax anyway. :rotfl:)

Because it seems a bit daunting, and there must be something more to it? Do I withdraw it as cash then pay it in? Or transfer with online banking? What is the best way? I do want to make some money, but I don't want to lose any by making a mistake!

Plus, it might be worth noting, Lloyds TSB will give £50 at the end of next year if I make 3 credits into the account of any amount and don't go overdrawn.. would the 'stooze' be worth it?

Thanks in advance everyone!

Broke_Student

With the LloydsTSB account the best way to make money is to leave the account in credit and make 3 deposits over the year. This will pay you a £50 cash bonus. The £50 is more than you will make through stoozing the overdraft even if you plan it very well and use the best savings accounts (bear in mind that overdraft is only £500 to start with and you waste time transfering funds etc). Keep the positive balance as small as possible and keep the bulk of your cash in a savings account that pays better interest so you maximise your gains.

After the first year, once you have a bigger overdraft and your £50 bonus, you should stooze the cash. Transfering the money actually is just as easy as you say - you can set up a transfer or take cash out and deposit it into a savings account.
In my opinion you should always withdraw cash in smaller chunks incase they review you acount due to you constantly being in overdaft. It will look like you are taking cash out to spend. It is dead obvious that you are stoozing the overdraft if they see transfers to another account with your own name.
You will also need to make deposits into the LloydsTSB student account throughout the year as per the T&C's. The best thing to do is to get your student loan paid into it and withdraw £200 per week and deposit it into the savings account.

Using this method you should be able to stooze throughout the length of your degree with no problem with no questions asked. Also remember that you shouldn't use the student account as a current account, for shopping and direct debits etc..., whilst stoozing incase you go over the overdraft and get fined.