Overdrafts....

Praxidike

Banned
Hmmm was hoping this wouldn't happen, but I'm a student so I guess it's inevitable! With the HSBC, looks like I'm going to have to dip into the overdraft before the next student loan installment - it's apparently interest free up to £1500 - but does anyone know for how long it's interest free? Can't see much information anywhere on their website.

Thanks
 

andrew1810

Active Member
Until long after you graduate, I graduated 2 years ago and still have £500 interest free (and use it)

I have a separate savings account which gets a lot more interest and then run the current account into the overdraft, get more money that way!
 

GBDG1

Distinguished Member
Until 2 years after you graduate normally.

I would advise you to be a little careful about how you use it though. They insist that you use your student account as your regular account. I have a friend who uses a none student account for his day to day stuf and only uses his student one for the overdraft and they insisted he paid his overdraft back immediatly.

However, so long as you are makin reular paymens in (well at least some payments in) is should be fine :thumbsup:
 

andrew1810

Active Member
Well, I'm over 2 years now and they simply dropped it to £500, but it is still going.

It must vary from bank to bank, I use mine for outgoings and just top it up when it reaches the overdraft, never had any comments about it though
 

Praxidike

Banned
Thanks, looks like I'll be alright... once I get a job, after a month or so it should be gone, don't plan on going too far into the overdraft (famous last words)...
 

shodan

Distinguished Member
Don't do it!!! In my opinion an overdraft is the worst type of loan! If you use £100 then you need £200 to replace it. £100 for the original loan and another £100 to keep you out of the need to use it again. Plus its so eay to say "Oh I'll just have another £50 of it"....
 

eviljohn2

Novice Member
Don't panic so much shodan! We're talking about student overdrafts here which are interest free for the duration of the time at University and for a few years afterwards. Not full-on expensive loan stylee overdrafts. ;)

I used mine as a buffer to stop me worrying about mismatches between loan instalments/ tuition fees and paying the rent. Overall it works out well and is very useful as long as it's treated with the respect it deserves and not just as a slush fund for new toys. :)
 

shodan

Distinguished Member
Don't panic so much shodan! We're talking about student overdrafts here which are interest free for the duration of the time at University and for a few years afterwards. Not full-on expensive loan stylee overdrafts. ;)

Overall it works out well and is very useful as long as it's treated with the respect it deserves and not just as a slush fund for new toys. :)


Ah, I see now where I was going wrong...:rolleyes: :rotfl:
 

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