Can my bank transfer savings to overdraft?

Jami74

When I was a student a few years ago I had a student account with an interest free overdraft and a savings account with the same bank. When my student loan came through I would transfer it all to the savings account and live out of the free overdraft, transferring money from the savings account as I needed it to prevent going over the overdraft limit. The interest earned was minimal but liked getting a few pence every month

Ergates

jimjames wrote: »

Why pay overdraft fees when interest rates on the savings are so small in comparison?

Because many banks offer interest free overdrafts on student accounts - meaning they may well not be any fees.

PRAISETHESUN

@OP strictly speaking the bank has the right to withdraw the overdraft at any time, and can use their right to set off if you hold any other savings with them to take that money to pay off the overdraft. If you are worried that might happen then I would advise against keeping it in any account in the same banking group. If you are steadily making repayments then I probably wouldn't worry about it - this is usually in extreme cases where you've defaulted on your overdraft repayments