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Two Student Accounts?

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    Sorry to bump an old thread but thought there were two important points that needed making.

    First off, OP, just get a job. That should a entitle you to more of an overdraft from your current student account, earn you money and experience and isn't dodgy.

    Can't get a job? Seriously not looking hard enough. If it means cutting grass for £5 a go you could make a reasonable amount in a week. Or go to a pub and offer yourself up for 2 weeks pay free then go hand out CVs to more pubs for paid work or ask the employer to hire you.
    Go to a temp agency?

    At the two debating the difference between an overdraft and student loans. There is a big difference. A student loan, in my day anyway, didn't accrue interest until you left and repayment was done through PAYE in such a way that keeping it was better than paying it off.

    An overdraft on the otherhand is more deadly. Sure it's interest free for so much but go over that and the charges on it become extortionate to the point it becomes very difficult to get out of. You may never go over your overdraft limit but it has to be paid off at some point, usually 3 years after graduating depending on the graduate account you get. This could all be fine if you've got a job once you graduate, usually means putting aside £50 per month if you've maxes your overdraft. Maxing out two overdrafts would be more, considering you probably won't get two graduate accounts so will be accruing hefty interest or if you do get two graduate accounts you'll be having to put aside at least £100 if not more to clear the overdraft within 3 years of graduating.

    Basically overspending is dangerous, be wary of overdrafts the charges are commonly above 15%, there is no point in spending £1,000 now if you have to pay back £1,500 to pay it all off later.
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    (Original post by maskofsanity)
    On mine, it is negligible (about 1.5%). You're probably younger and with the new, higher loan, and even then the interest is still very low compared to a normal loan.

    But more to the point, the student loan having (a very small) interest and a student overdraft NOT having interest, strengthens my viewpoint even more. You do realise that, right? That you are arguing against yourself right now?

    And you still haven't given me a reason for the answer to my question.
    Well, actually after a certain period of time, the overdraft gets charged normal rates of interest, if you don't clear it ie: ridiculous charges
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    (Original post by de_monies)
    Well, actually after a certain period of time, the overdraft gets charged normal rates of interest, if you don't clear it ie: ridiculous charges
    I'm aware. So you pay it off, just like a credit card.

    If you're the type of person who can't ever get jobs, can't manage cash flow and isn't sensible or forward-thinking, then yes, don't get a second overdraft (or possibly not even a first). If you know how to earn a decent amount of money in your summer breaks and can plan your cash flow and budget effectively then having two overdrafts is like having two very convenient credit cards.
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    (Original post by maskofsanity)
    I'm aware. So you pay it off, just like a credit card.
    Well, slightly different to CC's considering that you could just set up a direct debit for that, with no interest

    Here you'd be charged interest, until you're out of the overdraft

    (Original post by maskofsanity)
    If you're the type of person who can't ever get jobs, can't manage cash flow and isn't sensible or forward-thinking, then yes, don't get a second overdraft (or possibly not even a first). If you know how to earn a decent amount of money in your summer breaks and can plan your cash flow and budget effectively then having two overdrafts is like having two very convenient credit cards.
    This is unfair. I am an advocate for credit cards, as a credit boosting tool, if used correctly yet I don't have an overdraft because I don't need an overdraft

    I think it's far better financial discipline to never go in to an overdraft, than having to go in to an overdraft, and then pay it off
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    (Original post by de_monies)
    Well, slightly different to CC's considering that you could just set up a direct debit for that, with no interest

    Here you'd be charged interest, until you're out of the overdraft
    No, interest does not start straight away. E.g. at my bank I get a year from graduation to pay off the overdraft INTEREST FREE. That is quite typical for student overdrafts; they understand you need to find employment.

    (Original post by de_monies)
    This is unfair. I am an advocate for credit cards, as a credit boosting tool, if used correctly yet I don't have an overdraft because I don't need an overdraft

    I think it's far better financial discipline to never go in to an overdraft, than having to go in to an overdraft, and then pay it off
    I don't need an overdraft either, doesn't mean I don't enjoy using it as a means of getting credit in the short-term. E.g. bought a £1200 laptop at the start of summer with an overdraft, paid it off by the end of summer. I didn't need to do that; could have just waited, but it's a luxury that I can manage quite comfortably. Not everyone can, and they pay for it (literally).
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    (Original post by maskofsanity)
    I'm aware. So you pay it off, just like a credit card.

    If you're the type of person who can't ever get jobs, can't manage cash flow and isn't sensible or forward-thinking, then yes, don't get a second overdraft (or possibly not even a first). If you know how to earn a decent amount of money in your summer breaks and can plan your cash flow and budget effectively then having two overdrafts is like having two very convenient credit cards.
    To be honest I don't understand the need for 2 student overdrafts. You're given a large chunk of money in three instalments throughout the year and you've got a fair sized overdraft. If you really need more than that you need to check your spending or find a source of income, not look for more ways to screw yourself in a few years.

    I don't think anyone here is against overdrafts or their uses. But two? That's a) stupid and b) greedy
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    (Original post by maskofsanity)
    No, interest does not start straight away. E.g. at my bank I get a year from graduation to pay off the overdraft INTEREST FREE. That is quite typical for student overdrafts; they understand you need to find employment.
    I realise that, but say the OP doesn't find employment and genuinely tries. They could then start paying interest, as soon as the time limit is over


    (Original post by maskofsanity)
    I don't need an overdraft either, doesn't mean I don't enjoy using it as a means of getting credit in the short-term. E.g. bought a £1200 laptop at the start of summer with an overdraft, paid it off by the end of summer. I didn't need to do that; could have just waited, but it's a luxury that I can manage quite comfortably. Not everyone can, and they pay for it (literally).
    That's fair enough, but I always prefer to have at least £500 in the bank, in case of emergencies. I'd rather financially discipline myself now, as opposed to when I'm (hopefully) earning
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    (Original post by Zorg)
    To be honest I don't understand the need for 2 student overdrafts. You're given a large chunk of money in three instalments throughout the year and you've got a fair sized overdraft. If you really need more than that you need to check your spending or find a source of income, not look for more ways to screw yourself in a few years.

    I don't think anyone here is against overdrafts or their uses. But two? That's a) stupid and b) greedy
    It's only stupid if you are stupid. You don't understand the need for two overdrafts, that's fair enough. Here's a hint: you need money to make money. Using an overdraft as capital has served very well for me, but each to their own. You can work for £6/hour in a part-time job if you like... not for me.

    (Original post by de_monies)
    I realise that, but say the OP doesn't find employment and genuinely tries. They could then start paying interest, as soon as the time limit is over
    If you don't find employment a year after graduation then you have done something wrong before or during your degree. Not to mention, if you're smart you will have it paid off long before the year is up.

    (Original post by de_monies)
    That's fair enough, but I always prefer to have at least £500 in the bank, in case of emergencies. I'd rather financially discipline myself now, as opposed to when I'm (hopefully) earning
    What I do is risk-free and accounts for emergencies, so I agree with you.
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    (Original post by maskofsanity)
    It's only stupid if you are stupid. You don't understand the need for two overdrafts, that's fair enough. Here's a hint: you need money to make money. Using an overdraft as capital has served very well for me, but each to their own. You can work for £6/hour in a part-time job if you like... not for me.

    If you don't find employment a year after graduation then you have done something wrong before or during your degree. Not to mention, if you're smart you will have it paid off long before the year is up.

    What I do is risk-free and accounts for emergencies, so I agree with you.
    First you're talking about a different use for an interest free overdraft and second, you're being condescending. Don't be a prick when trying to have a decent conversation.

    Taking money out of an interest free overdraft and putting it in to an account which will earn interest is great, provided you don't need the money. However what we're talking about here is a different scenario.
    We're talking about student overdrafts. So first off it's against the agreement to have two student accounts, technically it could be seen as fraud and I believe you need to make certain deposits in to the account at certain points in the year to be eligible for the account. Second one student account should be more than sufficient if you even remotely budget.

    I can understand the use of a normal overdraft or even more than one in some cases. This however does not warrant it and would be a childish and irrational move to get more money.

    I think the point is more that you shouldn't put yourself in the position where you desperately need a job to pay off the student overdraft. Regardless of what you say there are lots of graduates out there that don't have jobs. I realise a large proportion of them might not have the best degree or just not able to sell themselves. Regardless, £1000 is a good months wages for most first jobs, that's before you even start talking rent/food/entertainment.
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    (Original post by Zorg)
    First you're talking about a different use for an interest free overdraft and second, you're being condescending. Don't be a prick when trying to have a decent conversation.
    Ad hominem - not surprising you resorted to that.

    (Original post by Zorg)
    Taking money out of an interest free overdraft and putting it in to an account which will earn interest is great, provided you don't need the money. However what we're talking about here is a different scenario.
    Who said anything about doing that? It's a terrible idea for the time and return.

    (Original post by Zorg)
    We're talking about student overdrafts. So first off it's against the agreement to have two student accounts, technically it could be seen as fraud and I believe you need to make certain deposits in to the account at certain points in the year to be eligible for the account.
    You have to manage them well, yes. If you read the T&Cs you'll see it's quite easy provided you are sensible and smart.

    (Original post by Zorg)
    Second one student account should be more than sufficient if you even remotely budget.

    I can understand the use of a normal overdraft or even more than one in some cases. This however does not warrant it and would be a childish and irrational move to get more money.

    I think the point is more that you shouldn't put yourself in the position where you desperately need a job to pay off the student overdraft. Regardless of what you say there are lots of graduates out there that don't have jobs. I realise a large proportion of them might not have the best degree or just not able to sell themselves. Regardless, £1000 is a good months wages for most first jobs, that's before you even start talking rent/food/entertainment.
    Again, need money to make money.

    As for the OP, who is clearly just using the second overdraft to get by, then as long as he got jobs during his degree and/or entered employment within a year of graduating (both very feasible and expected of you) there wouldn't be any harm in two overdrafts.

    N.B. if you're a graduate earning £1000/month, i.e. £12,000 per annum, then something has gone terribly wrong.
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    (Original post by maskofsanity)
    Ad hominem - not surprising you resorted to that.

    Who said anything about doing that? It's a terrible idea for the time and return.

    You have to manage them well, yes. If you read the T&Cs you'll see it's quite easy provided you are sensible and smart.

    Again, need money to make money.

    As for the OP, who is clearly just using the second overdraft to get by, then as long as he got jobs during his degree and/or entered employment within a year of graduating (both very feasible and expected of you) there wouldn't be any harm in two overdrafts.

    N.B. if you're a graduate earning £1000/month, i.e. £12,000 per annum, then something has gone terribly wrong.
    Ok, this is gonna be my last post in this thread as this seems to be going no where.

    It was merely an example of using money to make money. You may manage to handle more risky strategies but the vast majority of the population, let alone the student population, do not know how to do so. Regardless, the point is moot.

    I have come across very few T&Cs of student accounts that do not stipulate that you can only hold one student account at any one time. If you wish to lie and get around it, by all means do so. Just don't pretend that it's the done thing and is not shady.

    Again, I never disregarded that point. In essence my point was, not to take out more than you need to.

    £12,000 net. is not far off from realistic. A large majority of graduates spend most of their first year looking for jobs and most will try to get a casual or basic job in the mean time.

    I've essentially tried to put this in context with the OPs question. I can appreciate your views on overdrafts, however I fail to see how they're the best way forward for the OP.
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    (Original post by Zorg)
    Ok, this is gonna be my last post in this thread as this seems to be going no where.

    It was merely an example of using money to make money. You may manage to handle more risky strategies but the vast majority of the population, let alone the student population, do not know how to do so. Regardless, the point is moot.

    I have come across very few T&Cs of student accounts that do not stipulate that you can only hold one student account at any one time. If you wish to lie and get around it, by all means do so. Just don't pretend that it's the done thing and is not shady.

    Again, I never disregarded that point. In essence my point was, not to take out more than you need to.

    £12,000 net. is not far off from realistic. A large majority of graduates spend most of their first year looking for jobs and most will try to get a casual or basic job in the mean time.

    I've essentially tried to put this in context with the OPs question. I can appreciate your views on overdrafts, however I fail to see how they're the best way forward for the OP.
    It's not shady - a lot of banks merely require that they are the main.

    No it is far from realistic. The average graduate starting salary is at least £21,000, which is around £18,000 post tax. Even if you start below average on, let's say, £18,000 then you will have around £16,000 post-tax. Again, a huge difference to your example of £12,000. Like I said, if you're getting £12,000 post-tax then you made a lot of mistakes in education and work experience.

    As for the last point, I mostly agree but was trying to give the thread some perspective.
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    I took a second one out with Lloyds after a particularly hefty fine in my first year. Just said no when she asked if I had another account, took the £500 out straight away and never paid anything in whatsoever.
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    Can I have a student account with one bank and a current account with another?
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    (Original post by EGjeff)
    I took a second one out with Lloyds after a particularly hefty fine in my first year. Just said no when she asked if I had another account, took the £500 out straight away and never paid anything in whatsoever.
    You're keen! Sounds a good idea. I might try.
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    (Original post by maskofsanity)
    On mine, it is negligible (about 1.5%). You're probably younger and with the new, higher loan, and even then the interest is still very low compared to a normal loan.

    But more to the point, the student loan having (a very small) interest and a student overdraft NOT having interest, strengthens my viewpoint even more. You do realise that, right? That you are arguing against yourself right now?

    And you still haven't given me a reason for the answer to my question.
    if you break the banks T & C they remove the student part of the account so you get heavy charges for the over draft, so its not interest free

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