Top Student Accounts 2007/08 Article Discussion

Former_MSE_Dan

This thread is closed as there's now re-researched, fully updated information for 2008/09 in the Top Student Accounts article

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Top Student Bank Accounts 2007/08 Article

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Allan87

In regards to multiple accounts, and I'm not sure of the T&Cs of the relivant banks involved, but a friend of mine has a student account with Barclays, HSBC, RBS and Natwest. He was also declined by Lloyds and Halifax but noticed a credit search on his file by both these latter two banks which may suggest the only way they can tell you have another student account is to assume that an existing credit search by another bank is for a student account, meaning the four banks mentioned don't do credit searches.

studentsaver221

i wanted to open two student accounts one with halifax for my student loan to be paid into and one with natwest for my parents to pay in to and use both accounts simulateously, getting advantages from each account. i cant see anything in the terms and conditions to stop me doing this. so is there a problem? except for it being "frowned upon"?

proplusplus

I'd have a big warning on halifax student account.

It should be noted, they offer the least preferential options after you finish uni. They give you a year to clear, then stick you on 18.9% APR.

Most other accounts offer a graduate account automatically where the overdraft limit reduces, but is still interest free. Should be noted about halifax - that's all.

proplusplus

regularsaver1

proplusplus - they do not tick you on 18.9%

you can have your student account for a year after graduation which you are aware of and have enough time to reduce. They also write to you.

The Halifax have different current accounts, one overdraft rate is 7.9%, one is 13.9% - all depends on what account you have

A lot of banks have removed their graduate facilities recently

snoopylipstuff

I have a question - if in a position where going into an overdraft is not necessary, will this look better on ones credit history than putting all possible overdraft in a savings account? Or does it not have any affect on credit history?

Gemmzie

snoopylipstuff wrote: »

I have a question - if in a position where going into an overdraft is not necessary, will this look better on ones credit history than putting all possible overdraft in a savings account? Or does it not have any affect on credit history?

If you have no other credit then it's an improvement because you will actually have a credit history, otherwise if you have zero credit then you'll find it much harder later in life to get credit for mortgages etc

snoopylipstuff

Gemmzie wrote: »

If you have no other credit then it's an improvement because you will actually have a credit history, otherwise if you have zero credit then you'll find it much harder later in life to get credit for mortgages etc

So it actually does you a favour to go into overdraft? How is this so? At what stage does it stop becoming favoursble and start looking bad?

dushanko

I'm starting a 2 year part time course (HNC) on the end of the month and would like to have a student account. I'm not going to use it as I have my current account with A&L and always in credit. Which account am I eligible to open? Can I then transfer the full amount of free overdraft to ISA or saving account and earn some interest on it? Do they check my credit score?( its about fair to good) Maybe Abbey's student account would be suitable.Thanks for any suggestions.

Firkin_2

I was a little surprised not to see the Co op Student Bank Account mentioned in the article. As soon as the account is credited with £300 it automatically generates an overdraft facility of £1400 in year one, rising (on request) to £1700 in year two and £2000 in year three, with a further 12 months interest free on graduation. No up to x amount with this one - they appear to be guaranteed amounts. Add to that Post Office paying in and out it seems a winner to me. HBOS wouldn't even give my son a student account (claiming he was not credit worthy - despite meeting all the criteria) - I'd certainly give them a wide berth.

Gemmzie

snoopylipstuff wrote: »

So it actually does you a favour to go into overdraft? How is this so? At what stage does it stop becoming favoursble and start looking bad?

If you have no other credit, yes.

I guess it goes bad when you go over your limit or miss a payment on a credit card