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Investing with overdraft money?
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philip1427
Posts: 143 Forumite
I have just been offered a student account with my bank which comes with a £3000 overdraft. Is it possible to withdraw money on that account until it's minus £3000 then place it in a savings account and make money off it ?
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Yes it will beloose does not rhyme with choose but lose does and is the word you meant to write.0
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Yes but remember you will still need to fund the account as per the T&C's I think most of the student accounts are every three months in line with student loan/grant payments.
The bank can recall the OD at any time so maybe keep the money somewhere you can access it if they call it back.
When I was student I put mine into Stocks and Shares ISA, then paid it back after five years, when the OD stopped being interest free.I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%£2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%Total £4095.19/£7332.95 = 55.84%0 -
To be fair I will only make around £60 in interest a year so it's probably not worth the effort0
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Worth it for me. At its simplest you can take out the 3k of free overdraft funds and use it to fund a Tesco account offering 3% on 3k with no funding requirement. Skim the interest off into a regular saver or other account and it's free money. I have a £250 interest free overdraft on my main current account and I do a monthly sweep before payday into an interest bearing account.0
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philip1427 wrote: »I have just been offered a student account with my bank which comes with a £3000 overdraft. Is it possible to withdraw money on that account until it's minus £3000 then place it in a savings account and make money off it ?
Do you actually have the 3k limit? What year of study are you in?
I know accounts are advertised with OD limits, but the accounts I had were tiered so you got £500 in the first year £2000 in the second and so forth, up to 3k in the third year...
Just a thought as that would make a difference, I had to go into branch each year, or over the telephone to ask for them to increase the OD on the account and they looked back through my account to check I was funding the account as per the T&C's
Even working in a bank and getting regular monthly payments they were reluctant to offer the full 3k from the start.I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%£2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%Total £4095.19/£7332.95 = 55.84%0 -
Would £150 be worth the effort?philip1427 wrote: »To be fair I will only make around £60 in interest a year so it's probably not worth the effort0 -
Plus another £60 if you go for it0
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