[KX321]

I've taken out a student account with Natwest which comes with a £500 overdraft in the first year, I WILL need to break into this from time to time but as I was reading the conditions it says "overdraft repayable on demand".

I'm just wondering how long it would take them to demand say £100 back if I went that much into my overdraft. Do they demand it after a few days/weeks?

[JohnC2211]

I'm with Lloyds, and as a 2nd year I had a £1000 overdraft. I was in it pretty much all summer and didn't hear anything. Allegorical though.

[Zorg]

If this is a student account they don't usually demand it back, not during your course anyway. I say usually, because they can demand it back as stipulated in the T&Cs but they don't tend to.

Your student account will turn in to a graduate account on graduation/soon after, where the interest free overdraft limit will gradually decrease. The rates at which it decreases from bank to bank, but usually it's about 3 years from full interest free overdraft to nothing, with rates changing every year similar to how your interest free overdraft limit increases every year.

That said, try to stay out of your overdraft. You can of course dip in to as you need to, but I'm seriously regretting the overspending I did using mine.

EDIT: Forgot to mention, with the graduate account it's not that they demand the amount over the limit back, but they will charge you a crazy interest on it.

[Iamyourfather]

For me, it's the month I graduate. I'm on a Natwest student account.

[Meeee :)]

(Original post by KX321)
I've taken out a student account with Natwest which comes with a £500 overdraft in the first year, I WILL need to break into this from time to time but as I was reading the conditions it says "overdraft repayable on demand".

I'm just wondering how long it would take them to demand say £100 back if I went that much into my overdraft. Do they demand it after a few days/weeks?

Everyone always starts off thinking they might dip into their overdraft by a hundred or 2. The temptation of "free" money quickly becomes too much and before you know it you're maxing it out at £1500.

[Cll_ws]

(Original post by KX321)
I'm just wondering how long it would take them to demand say £100 back if I went that much into my overdraft. Do they demand it after a few days/weeks?

You don't have to pay your overdraft off until you finish your course. You could be in your overdraft for the entire 3 years if you wanted

I'm currently -£1000

[LookIt'sPete]

My HSBC remains interest free for one year after I graduate. And, overdraft accumulates in the account over time, until I pay it back (when I like).

[KX321]

Thanks for the replies, great help.

I just didn't want to dip into it when I needed to and then have Natwest demand it back a week later when I don't have it. Although that could technically happen I guess, from the replies it seems like it won't which has given me peace of mind.

[fluttershy]

Since most student accounts don't give interest when in credit then you can treat the overdraft just as an extension of your account, at least until you graduate. I actually spend a lot of time overdrawn in my student account as I keep most of my money in a savings account that actually pays interest, then top up my student account at regular intervals with enough to last me for a bit longer. I also tend to run up quite a bit on my credit card for the last month before student finance goes in, as again it's better to use the month interest free on that than to "borrow" money from my savings.

I think the only times when they would demand repayment of your overdraft would be if you closed or had your account closed (for example for breaking terms of the account) or if they withdrew or reduced your overdraft. Reductions of withdrawals of overdrafts would usually be if you regularly exceed your limit, particularly for a long time, and will usually be over a manageable period. If you don't reduce your overdraft within the timescale they might demand instant repayment and/or close your account.
I imagine if a bank was to collapse then all loans, including overdrafts, could be called in to help pay those the bank owes too.

[alexmagpie]

(Original post by KX321)
Thanks for the replies, great help.

I just didn't want to dip into it when I needed to and then have Natwest demand it back a week later when I don't have it. Although that could technically happen I guess, from the replies it seems like it won't which has given me peace of mind.

I've never heard of this happening, no.

Try not to use it, but sometimes it's necessary. For example, I had to pay rent on my house this week, and my student loan hasn't come in yet. The banks understand that students have irregular income patterns, so don't worry.