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Multiple Student Accounts

Hi I know you're not supposed to have multiple student bank accounts... but I know so many people that do. Does this have an effect on your credit history or anything like that?

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Reply 1

solon

Lloyds

not hold a student account elsewhere

So, technically, you can get the student account at Lloyds whilst not holding the account elsewhere ... then apply for an account elsewhere.

I looked at Natwest. They say nothing about multiple accounts that I could find, but

Natwest

You must use the Student Account as your main current account and deposit regular amounts by way of local education funding, parental contribution, salary, student loan or other funding, such as sponsorship or bursary.

Well, I already applied for both accounts a while ago without knowing any of this .. I guess all I have to do to stay legal now is use Natwest as the main account instead of Lloyds, so, transfer my loan from Lloyds to Natwest. I was planning on having Lloyds as my Loan Account (so I don't accidentally spend what I owe elsewhere) and Natwest as my account for spending on other things .. food, drink .. etc. Therefore Natwest would be my "main" account. :rolleyes:

Maybe I'm just being optimistic here... :redface:

Reply 2

bowdeni

Ok, I've got a few student accounts (collecting the goodies and overdrafts) and they all specify that your not meant to have any other accounts, but they don't check.

All accounts also specify that you must pay your student loan into that account. Once again, I had a natwest account and all I did was run up a huge overdraft without paying any money into it. They haven't chased me up.

So by all means open as many accounts as you wish, but it may be a good idea to move your loan about a bit once you've got it. I.e. transfer the loan into each account for a couple of days. Sounds a hassel, but it isn't with online banking. Takes under a minute.

Reply 3

spark911

solon

I haven't seen anywhere that states it is illegal to have more than one account apart from people on this forum... anyone have any references?

Edit: Ok I finally did my own research and come up with some interesting conclusions

On this page: http://www.lloydstsb.com/legal/current_accounts_legal/student_account_page.asp it does not say anything about holding another account elsewhere. However, on http://www.lloydstsb.com/current_accounts/student_account.asp that page, it says that to apply for the student account you must be over 17 etc etc etc and
So, technically, you can get the student account at Lloyds whilst not holding the account elsewhere ... then apply for an account elsewhere.

I looked at Natwest. They say nothing about multiple accounts that I could find, but
Well, I already applied for both accounts a while ago without knowing any of this .. I guess all I have to do to stay legal now is use Natwest as the main account instead of Lloyds, so, transfer my loan from Lloyds to Natwest. I was planning on having Lloyds as my Loan Account (so I don't accidentally spend what I owe elsewhere) and Natwest as my account for spending on other things .. food, drink .. etc. Therefore Natwest would be my "main" account. :rolleyes:

Maybe I'm just being optimistic here... :redface:

There is a more detailed terms and conditions somewhere which will probably state failure to comply with them (i.e: put all your money in there - they may get a bit suspicious if you are only putting hundreds in when your loan is supposed to be thousands, not to mention it's completely obvious when say £250 goes from HALIFAX to LLOYDS, instead of from the SLC!) results in goodbye account! That's just a quick summary of the T&C's, there is probably a longer one stating that its not just about the application process.

I'm not too sure really of the consequence. But it's likely they are under no obligation to continue to offer you a student account if you aren't going to be putting the money in their account as you agreed to. The result? A nice upgrade to a normal account, goodbye to the 0% interest rate and hello to an 18.86% interest charge on all borrowings (in bowdeni's case with natwest)!

I did try this too, but I decided against it. As for credit history, well they can write something negative afterwards I'm sure, if they find out. When you register you are asked how much loans etc you will get, so when you start putting in much less it'll likely flag something up. If you put an incorrect amount in you may get away with it.

If you are doing it, then I at least hope you're investing and not SPENDING it.

Reply 4

bowdeni

It doesn't matter where the money appears to come from, I asked. They said as long as the money gets transferred in, it's fine. They understand that the money may be paid into another account. I'm moving the entire loan around anyways. Has worked fine and I've been into branches and they've not said anything. I'm pretty sure they couldn't suddenly hit me by changing the type of current account, and even if they did, I'd simply pay it off instantly.

I only use the overdrafts for cash flow.

Well do it at your own risk, but I have, and my mates have been fine.

Reply 5

Angelharpist

Erm, I'd be careful...

Maybe saying that you have multiple student accounts with different banks isn't a very good idea on an internet forum, which is accessible to millions of people... You never know if an employee/CEO of one of the banks concerned may be reading.

Take care

Reply 6

spark911

Angelharpist

Well, I doubt they'll link him like this :p:

But he has said that he has checked with the banks, so he should be ok :cool:

Reply 7

bowdeni

Angelharpist

If the CEO of natwest is reading this, and has the time to track me down and close my account, I'll take my hat off and welcome it.

Reply 8

Angelharpist

Well you read about employees who lose their jobs all the time because they have Blogs online somewhere...

An air stewardess was sacked from Delta Airlines for having a Blog, even though it didn't ever mention the name of the airline or discuss it in a derogatory way.

Just advising that you watch out... :smile:

Reply 9

clearstudentdebt

Your credit rating should show all of the acounts that you hold, but if you explain to your "new" bank that you are going to close the old account then I would imagine they would have no problem in opening another student account for you.

With another overdraft etc...bonus

Reply 10

clearstudentdebt

As for the "big brother" mentality, I won't worry about it. I (and my website) work with numerous Government bodies, and for all of my comments, posts and features - I have never had the secret police coming around...

Banks have got better things to do....

Reply 11

falah

alright be honest, everyone has more than 1 bank account dont they heheheh. how else are we supposed to survive in uni?

Reply 12

falah

whats the best bank to go to for a student account?

Reply 13

solon

spark911

There is a more detailed terms and conditions somewhere which will probably state failure to comply with them (i.e: put all your money in there

Ah .. yeah .. but let's think about that :wink:

"more detailed terms and conditions *somewhere*"
So who has found these more detailed T&Cs? My searches did not reveal them, I was not given a copy when I signed up for either of these accounts.

You say that they will "probably" state ... so you don't know either. Does anyone? Ergo .. do they even exist? I'd like some links if anyone has them. I'm pretty sure that applying for Lloyds first then getting a Natwest account is not against either of their T&Cs. Also, Natwest states it must be your main current account. That's what it will be, I just wont have all my loan in there (which gets taken out almost as soon as it's paid in due to accomodation). So how are they to know? Natwest did not state that the loan must go in there; some people do not have loans.

Natwest

The word used in there is "OR". You can have any of those ... "student loan OR other funding", or parental contribution etc etc.

Reply 14

spark911

solon

POST

Well, NATWEST gave bigger T&Cs, as I got a copy (some booklet).
The only thing I'd be concerned about is credit rating, which according to natwest they may check (I imagine it'll be random on so many accounts, so you probably can avoid it).

We may make periodic searches of and provide information (including how you manage your account and any arrears) to, credit reference agencies, fraud prevention agencies and the Group to manage and take decisions about your account. Such information may be used by other credit providers to take decisions about you and your financial associates.

They will be able to see how many accounts you hold, especially those with overdrafts/credit arrangements, especially those where you are in credit.

But I guess natwest isn't bothered then, but I haven't seen the other T&C for Lloyds. There must be some somewhere, but if you weren't given them then you have an excuse if they complain to you :p:

Reply 15

solon

Natwest

to manage and take decisions about your account.

They wont need to "manage or take decisions about my account" as long as I don't draw attention to it. I imagine they would do this when you want to apply for a larger loan etc etc .. not just random searches on student accounts.

Reply 16

spark911

solon

If we were to take that literally, they make "periodic" checks, meaning even if you don't 'draw attention to it' it may still occur. Like I said, I doubt every account gets checked every so many days. I'm sure it's checked purely when you want to change something (increase overdraft) as well as random checks (as they will want to check randomly as I'm sure it will often produce some good results).

They would be rather foolish not to do random checks and to only check when you attempt to make a change to your account.

Reply 17

solon

spark911

They would be rather foolish not to do random checks and to only check when you attempt to make a change to your account.

Why? They'll know when you're paying back interest, or not, so they don't need to do random checks to see this. Random checks would just check how in credit you are with other banks, right? But would they care if they are being paid everything? I doubt it. They'd only want to take action if the guy stopped paying them back, or applied for another account with them. Then they'd want to do a credit check.