Repaying an overdraft.

riskyinred

This is going to sound potentially stupid, but I realised that after I delighted in Natwest agreeing to my Overdraft, really I'm not too clear on how they work.

Say I have to use £200 of my overdraft before my student loan goes in (god knows when that will be!) in order to pay for deposits etc. When my student loan goes into that same bank account, does the bank automatically take back that £200 from the money going in? Or do I manually have to say to the bank that they need to take that money?

Thanks in advance for answering a simple, but baffling question like this.

deddogblues

Any money paid into an overdrawn account is used to reduce the overdraft, so you would be £200 light on your student loan when it is paid in.

reddevilled

Before you get your loan your balance will be £-200, once you get your student loan of, for arguments sake, £1000 your balance will be £800. So yes they do take the money back straight away, in effect.

muddyfox470

Of those who have a Natwest Student Account, who has their overdrafts activated already?

Assuming they are off to uni at the end of this month / start of october, and they are 18, and in their first year?

They keep saying that i can't get my overdraft until the student loan is paid in?

@Riskyinred do you already have your overdraft then, and if so how did you go about getting it? did you go to your local branch?

Cheers to all

Ian

riskyinred

I haven't actually got mine yet, but I know a lot have. All you do is ring up and say that you need it to be activated immediately due to costs before your student loan goes in, apprently they're quite understanding about it.

Thank you to everybody who answered this thread.

Rich_4

I'm with Natwest, although my first year was last year.

I'm pretty sure you just have to go into a branch and ask about getting your overdraft activated and it's done. Likewise, for my second year, I have to go to Natwest once I'm registered in order to increase my overdraft.

Also, riskyinred, you should know when your student loan is being paid in by now. Student loan people send you a schedule giving dates and amounts. The first payment goes in on 26/09, second is the 16/01 and can't remember the first

mhoc

My daughter has started working her way through her Natwest overdraft. Her loan could take at least another 3 weeks to go into the account, possibly up to 10 weeks depending who you believe. She has not has a letter yet with any dates on. I think I might hang onto this if it ever comes or she will only ever have money in her account for three days over the term!"

Does anyone know when these overdrafts need repaying, do they give you a date after you have finished uni before they convert it to a regular overdraft?

Mary

mo1222

mhoc wrote:

Does anyone know when these overdrafts need repaying, do they give you a date after you have finished uni before they convert it to a regular overdraft?

Mary

My son is also with Natwest (2nd year starting now) and I've been asking him when he needs to pay his overdraft back as he used some of it last year. Neither of us knows anything about overdrafts!

This is also going to sound stupid but the overdraft quoted is
£1250 Year 1
£1400 Year 2
£1600 Year 3
so does that mean he has £1250 in the 1st year and then an extra £150 in the 2nd year and extra £200 in the final year, making the total £1600? Or will the available overdraft be £4250 over the 3 years (surely not!)?

Thanks for any help