Working the overdraft

iMacThere4iAm

Hi all,
I have some questions regarding student accounts and the potential for a bit of consumer revenge when I go to uni this summer.

1. Is it advisable to take the full (interest-free) overdraft from a student bank account and put it straight into a savings account or ISA?

2. On a related note, is it best therefore to aim for an account (or accounts) with as high an overdraft limit as posible?

3. Assuming that's all good, how easy is it to get around the lock-ins that are supposed to prevent you from opening more than one student account with different banks?

Lokolo

1. No, because you can't predict the future and if you put all your overdraft in savings account then need it back quickly (unforseen circumstances) then it can be hard, losing interest etc. Majority of people put around 50-75%.

2. Upto you, bigger the overdraft bigger the risk. If you end up spending it, you are f*cked.

3. Not sure about this one. But if you get more than 1, and the bank do find out, once again, you are f*cked, they will take the interest free overdraft and stick a nice big 18% on it and more than likely, inform other banks and you maybe then unlikely being able to get one.