Student Account Over draft

[Mikah75]

Ok got offered an interest free bank overdraft with my new student account, but i only said £100 as i didnt want it to add up, but now im worried as my sister said she needed way more than that, how much would anyone recommend? how long do i generally have to pay it back etc?

 

[Adrianicus]

Been years since I did uni and from what i hear you need alot more money these days.

Personally I'd take the max overdraft the bank will give you.

With regards to how long you have to pay it back - guess it depends on what the bank is offering.

Recommend you ask the bank. I think when I did mine they upgrade your account to a graduate account for a year or two when youve completed the course, during which time the overdraft is interest free. This is the period to pay it off.

I did my uni years 1998-2000 so probably totally different now.

 

[cHodAX]

Adrianicus you need to add 'Nuns!' to your title bud

 

[lilmissnaughty]

well i dunno bout all banks but i was banking with hsbc while at uni (still am now).
they let u have up to £1000 overdraft interest free in the first year an u can increase it by £250 each year till u graduate if need be.(max 5years depending on course etc).once u graduate u can switch to a graduate account an the overdraft is interest free for like 2 years further.(affording some time to get a job an start paying it back before u get charged)even then they dont charge u on the whole amount they just drop ur interest free limit so u only pay if u still owe over a certain amount.
they was quite good really.

 

[Outlander]

take out the max overdraft you can mate, you dont 'have' to use it if you dont want to but it means its there if you do need to use it

I had my student overdraft for about 5 years rofl, it was for £1500. I never needed to touch it once though but knowing it was there was a good thing.

Go for the lot, just in case something you havent prepared for happens then at least you will have an option there rather than having no money whatsoever.

Remember that its just an option! Just cos you have an overdraft available doesnt mean you have to use it anyway, and if you dont use it then you got nothing to worry about.

 

[Adrianicus]

Adrianicus you need to add 'Nuns!' to your title bud

Haha yeah forgot about his fear of nuns!

 

[tris-]

take the grand. its interest free untill the end of your post graduate year. if you cant clear a grand in 4/5 yrs youve got something wrong with you tbh

 

[Lamp]

1. An overdraft facility is debt.
2. Whatever your overdraft limit, you'll hit. There'll always be something that crops up where you need more money.
3. IMO, have a £50 OD facility and try not to use it. Try staying in credit.

 

[tris-]

3. IMO, have a £50 OD facility and try not to use it. Try staying in credit.

no freaking chance a student living away from home could do this

i live at home and mine is still minus 800 or so

 

[Outlander]

1. An overdraft facility is debt.

if you use it yes. and tbh 1000 quid debt to get you through uni is well fucking worth it. 1000 quid means fuck all if at the end of it all you get your degree etc.

oh and whats the difference between a 50 quid od and a 1000 od anyway if your trying not to use them? none.

the idea isnt to use them, the idea is that you have it there for things that you need to get you through uni, not using it to piss away your time at the student bar.

go for the max mate!

 

[Adlatus Hellbringer]

Ok when i was a student i went for a £1000 overdraft facility. Over the course of the two years I had to extend to it to £1200. It took a while to pay off but it was interest free so hey Once u have a job on leaving uni it takes no time to pay it off atall seeing as u will probably be getting paid £1200 per month neways (or more if ya lucky )

So in answer to your question dont worry about the overdraft worry about the credit card

 

[swords]

I currently have 1.8K overdraft...i maxxed out surviving before i started placement and got paid...so yeah big overdraft

 

[Naetha]

Take out the max - its interest free, so think of it as an interest free loan. Mine started at £750, then went up £250 a year until I got to £1500 and now it goes down £250 a year which is perfectly manageable, but its only now (two years since I graduated) that I'm starting to not go over my overdraft limit every month.

 

[Mikah75]

thanks for all your help, will take the max

 

[Ryuno]

Its easy to say don't take an overdraft cos its debt etc, but living as a student away from home is tough, and I think its really nice that the banks actually offer interest free overdrafts, can really help you out when your in a tough spot.

 

[Serbitar]

I think its really nice that the banks actually offer interest free overdrafts

believe it or not the banks don't do it cos they're nice they do it cos they plan to make money off it. At the end of your course your overdraft will start getting charged interest and they'll make money as your not going to be able to clear your overdraft as soon as you finish uni. and as someone said earlier, if you have it you will use it. I know i did. my overdraft was capped at £1.8k for quite some time. My sister's is worse.

My suggestion would be to take a small overdraft at first (£100-150). if you cap it then sure extend it by another £100 or £200 and again as necessary, the bank is still gonna give you it interest free for now. Why max it if you don't have to? it only leads into the downward spiral of debt

 

[Mikah75]

well £100 is nt really anything, so for e.g if rent accidently takes too much out or, i miscalculate something, then i have no money and im fucked, so its an idea just for safety as ill be completely alone

 

[Garok]

They can change the overdraft amount fairly easily though if you need a larger one. If the time they will give you a increase the amount even if you dont askfor one, for example they gave me a £2500 overdraft even though I asked not to have one.

 

[crispy]

Well i got 2500£ overdraft or w/e you call it in english... Hardly use it tho

Get a job you fat hippie!

/hugs danish government for free student money