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Overdrafts and student bank accounts.

I have heard of the term overdraft. My friends already at university have used it a lot, but... I am not really sure what the term means.

Also.. are there student bank accounts in the UK? And if so, can I just go make one anywhere, for example Lloyds, which is the bank I'm with now. And what is the difference between a normal bank account and a student bank account? Any advantages?

Thank you in advance.
An overdraft is 'free' money, you get to spend over what is actually in your bank account to a certain limit. However it all needs to be paid back within a certain period of time or you will get charges and interest on the amount.

A student bank account differs as it allows an overdraft and some extras like train passes etc.

I personally don't have an overdraft or a student bank account and I have survived in university on my loan (which wasn't very much) I just didn't overspend what was in my account and limited myself :smile:

You can make one anywhere, and just type in student bank accounts to find the best one for you.
An overdraft is an interest free loan. You only pay interest (this will be in the terms and conditions) if you go over your agreed limited or after your graduate.

Going to move this to money and finance; as it seems to be more suited there.
Original post by OU Student
An overdraft is an interest free loan. You only pay interest (this will be in the terms and conditions) if you go over your agreed limited or after your graduate.

Going to move this to money and finance; as it seems to be more suited there.


You can pay interest on overdrafts, it's just that student accounts often come with interest-free overdrafts.

OP, there are student accounts in the UK and what I've said above is the main advantage of them.

Lloyds do have a student bank account. You can read about it here: http://www.lloydsbank.com/current-accounts/student-account.asp

Original post by justyna.malkiew
x
That... sort of makes sense, thank you!
All major banks will do student bank accounts. You will need to consider whether there's a local branch where you want to study. But every major city and town should have at least one branch of every bank nearby.

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