The Student Room Group

Overdraft?

Hello, I have a current account.

I don't have an overdraft but need a bit of money. Can someone please explain to me what an overdraft is exactly, I.e will I hae to pay interest or something, and do I get one by increasing the overdraft limit and is there any cost to this or loss to me, i.e would it be cheaper if I just got the money somewhere else rather than increasing my overdraft?

Thanks!
I just realised I should have put this in Financial Help or something, sorry.
Original post by similarBlank
I just realised I should have put this in Financial Help or something, sorry.


Moved this to Money and Finance for you :smile:

With the overdraft - are you a student? Most student accounts (or recent-graduate accounts) offer interest free overdrafts but you'd need to speak to your bank about it.
Original post by similarBlank
Hello, I have a current account.

I don't have an overdraft but need a bit of money. Can someone please explain to me what an overdraft is exactly, I.e will I hae to pay interest or something, and do I get one by increasing the overdraft limit and is there any cost to this or loss to me, i.e would it be cheaper if I just got the money somewhere else rather than increasing my overdraft?

Thanks!


you'll pay interest on the balance and a fee if you don't have an arrangement with the bank and well the only way you might get cheaper money is if you borrow from family or friends
Original post by Fox Corner
Moved this to Money and Finance for you :smile:

With the overdraft - are you a student? Most student accounts (or recent-graduate accounts) offer interest free overdrafts but you'd need to speak to your bank about it.


Thanks! :smile:

And, yeah I am, but I can't get a student bank account yet because they don't do them until July, and I was looking to get it to help with my student accomodation deposit which I need to pay by about 10 days. :tongue:

So, I've just got an ordinary current account, so I guess I'd have to pay interest if I did request an overdraft?
Original post by similarBlank
Thanks! :smile:

And, yeah I am, but I can't get a student bank account yet because they don't do them until July, and I was looking to get it to help with my student accomodation deposit which I need to pay by about 10 days. :tongue:

So, I've just got an ordinary current account, so I guess I'd have to pay interest if I did request an overdraft?


If you have a normal current account you can get an overdraft on this, but it will almost certainly result in you being charged interest. A few banks such as first direct offer a small (£100-250) free overdraft allowance, but I wouldn't imagine this is sufficient for your needs.

Why do you have to pay a student accommodation so early? Typically they are timed to come out after your student loan comes in and you will actually have money. Are you certain this is legit?
Original post by similarBlank
Thanks! :smile:

And, yeah I am, but I can't get a student bank account yet because they don't do them until July, and I was looking to get it to help with my student accomodation deposit which I need to pay by about 10 days. :tongue:

So, I've just got an ordinary current account, so I guess I'd have to pay interest if I did request an overdraft?


Probably, but I think overdraft fee's are at the banks discretion. You could offer to start your student account with that particular bank if they let you have an interest free overdraft for a month beforehand (might work - never know! :tongue:)

I'm only thinking that because HSBC is telling me my interest free overdraft on my graduate account is coming to an end soon and they're going to start charging me interest, but Nationwide have said if I move my current account to them they will extend my interest free overdraft for the next year.
Original post by similarBlank
Thanks! :smile:

And, yeah I am, but I can't get a student bank account yet because they don't do them until July, and I was looking to get it to help with my student accomodation deposit which I need to pay by about 10 days. :tongue:

So, I've just got an ordinary current account, so I guess I'd have to pay interest if I did request an overdraft?

That's going to be quite expensive for a deposit (for example on my overdraft that would be £10 a day), find the money somewhere else before resorting to that if you can.
Original post by Elivercury

Why do you have to pay a student accommodation so early? Typically they are timed to come out after your student loan comes in and you will actually have money. Are you certain this is legit?


Only for Halls of Residence I think - if you're renting a student house you often need to give a deposit at the beginning of the summer.
Hm, yeah I think y'all are right, I won't get the overdraft, it'll cost me too much. :tongue:

I jsut need to figure out how to get the £350 from somewhere else.... I've got £50 I can pay straight up, I should hopefully be selling a few things, which is maybe another £50. So, all I need is £250 from somewhere. :tongue:
Original post by similarBlank
Hm, yeah I think y'all are right, I won't get the overdraft, it'll cost me too much. :tongue:

I jsut need to figure out how to get the £350 from somewhere else.... I've got £50 I can pay straight up, I should hopefully be selling a few things, which is maybe another £50. So, all I need is £250 from somewhere. :tongue:


do you have any technology you dont need? you'd be suprised what you can make off that
Original post by claireestelle
do you have any technology you dont need? you'd be suprised what you can make off that


I don't think so. The technology I do have at the moment isn't all that good, and it's all I've got anyway. :tongue:

I just remembered, though, I've got about £300 in a Savings Account. The trouble is, is it's really old (Like 18 years) and I'm not the trustee on it, so I'm not sure if I can withdraw it.... I've tried to have it changed so the trustee's name is off it and it's solely my account but they said I can't do it, so not sure if I can withdraw the money either.
Original post by similarBlank
I don't think so. The technology I do have at the moment isn't all that good, and it's all I've got anyway. :tongue:

I just remembered, though, I've got about £300 in a Savings Account. The trouble is, is it's really old (Like 18 years) and I'm not the trustee on it, so I'm not sure if I can withdraw it.... I've tried to have it changed so the trustee's name is off it and it's solely my account but they said I can't do it, so not sure if I can withdraw the money either.


Is the trustee able to sign something for you? if so it should be doable
If you have a normal bank account, just go and talk to them. Assuming you have run it ok. Maybe your parents can stand as guarantors.
Original post by claireestelle
Is the trustee able to sign something for you? if so it should be doable


Unfortuently not, aren't able to have contact with them.
Original post by similarBlank
Unfortuently not, aren't able to have contact with them.


very clearly tell the bank that, that is the case and hopefully they ll give you the option to close the account.
Original post by claireestelle
very clearly tell the bank that, that is the case and hopefully they ll give you the option to close the account.


Yeah, I'll see what I can do. :smile:

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