2 student bank accounts?

notoriousmeg

I'm currently trying to sort out a way to pay utility bills for my 2nd year house. I'm sharing with 6 other housemates. My idea is that the best way to split the cost of bills is for all of us to pay in a monthly amount into a bank account specifically for our bills. If we have a student account, we can benefit from the overdraft if any bills are higher than expected that month. It also helps to have a shared account for things like loo roll and washing up liquid.
I currently have the Santander student bank account. HSBC don't require your loan/grant/money from parents to go in each term, so it seems ideal for what I have planned, but it says that I shouldn't have another student account. Will they really check up on this? Does this idea sound plausible at all? What would happen if they realised I had another student account?

xylophone

i

t says that I shouldn't have another student account

In that case, abide by the terms and conditions.


Are you the person responsible for paying the bills/doing the household shopping etc?

If so, open a standard bank account and agree with your sharers the amount they must pay to this account by SO from their own accounts each month.

The account should be used for no other purpose than meeting bills.


The account should not ever need to go into overdraft. It is up to you to be responsible for conducting the account correctly.

You should keep details (receipts) for all household shopping.

As this account will be for common purposes, you should be prepared to allow your sharers sight of it so that they can check that their funds are being applied correctly.

spadoosh

the only benefit of a student account is the interest free overdraft it offers. And you wouldnt need that anyway if its a bill paying account. So just use a normal bank account.

Be incredibly wary of what youre signing yourself up for. If you get it in one name only youre wholly liable. If you get it in mutiple names youre usually wholly and individually liable. That means should someone not pay they can chase anyone and everyone named for the whole debt, irrespective of what personal agreements you have in place. Your only option in that instance would be to pay and then look to sue anyone who hasnt kept up with any personal agreement you make. eg someone doesnt pay their share, they can chase all off you to pay that debt (they dont care who pays they just want it paying kind of thing). Non payment will lead to negative markers on your credit file which could/will effect credit applications.

Flobberchops

Student accounts often benefit from very generous overdrafts (often fee free) that are granted without credit scoring or a very lenient version of the usual credit scored process. The whole rationale is that it's a loss leader to gain the brand loyalty of future young professionals - the banks are sticking their necks out and doing you a favour, and in my experience take a VERY dim view of people trying to game the system. I wouldn't rock the boat if I were you.



Besides, I'm not aware of any student accounts that can be joint, and why would you volunteer to let your mates potentially put you in overdraft? No no nonononono. Find some other solution.