Overdraft on student bank accounts

Lightning360

I have a £1,500 overdraft on my Santander 123 Student account. If I go into this by around £1,000 when my accommodation is paid, will this have any negative impact on myself? 

I don't need to go into my overdraft but most of my money is in savings accounts (obviously the interest isn't very high, but it's better than nothing) and I'd rather just keep the money in the savings accounts. As long as deposit the required money by the end of the degree, I shouldn't have to pay any interest, right?

Ebe_Scrooge

I'm assuming the overdraft is interest-free?  Usually an overdraft charges comparatively high interest rates, but I think I'm right in saying the student one is free?  That being the case, you should be fine - just make sure you repay it before interest charges kick in.

One thing to consider - regular use of an overdraft tends to reflect negatively on your credit history.  Now I will admit I'm not sure whether a specific "free student overdraft" is flagged as such on your credit report, and therefore viewed less negatively by lenders.  But even so, if you're not planning on applying for a mortgage or loan until some time after your overdraft is cleared, it shouldn't cause a massive problem.

Bizzywizard

I think learning to live without an overdraft is better for you in the long run, even if its an interest free account. Too many students live in their overdraft and struggle to get out of it once uni finishes. My husband it one of them and its taken us years to get him straight and narrow and away from the overdraft and all the charges!