Why do most students need an overdraft?

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ImNotSuperman
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Are student loans/grants given at the end of the semester?

I'm looking to avoid a student account because I don't think I'll need the overdraft or the other perks that come with student loans - railway discount etc. I want to switch a few times to get the bonuses that some banks are offering, for example First Direct offering £100 to join them, then £100 if you leave, and Halifax offering £100 and then £5 a month on top of that.

Do many students do this? Or do most just stick to their student accounts?
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Klix88
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Student Finance arrives in instalments, around the start of each term.

A lot of students find that they need the overdraft, because their Student Finance/savings don't cover all of their uni costs and their parents can't afford to make up the difference. A student overdraft is also helpful if the SF payment is late, or for things like accommodation deposits, which tend to be due before SF arrives. Uni accommodation understands there may be a delay, but private landlords aren't so forgiving.
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Kayleighw27
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(Original post by ImNotSuperman)
Are student loans/grants given at the end of the semester?

I'm looking to avoid a student account because I don't think I'll need the overdraft or the other perks that come with student loans - railway discount etc. I want to switch a few times to get the bonuses that some banks are offering, for example First Direct offering £100 to join them, then £100 if you leave, and Halifax offering £100 and then £5 a month on top of that.

Do many students do this? Or do most just stick to their student accounts?
To be honest, (and I'm definitely not saying this applies to everyone) but quite a few of the people I live with tend to spend their loan as soon as it comes in, then have nothing left to live off for the rest of the term. I've seen people buying brand new Macs, games consoles etc then after their rent is paid they only have their overdraft to use. Also it's useful for students who get a smaller loan that they can't physically live off. I'd reccomend getting one, but try to avoid using it unless really necessary. Both the amount, plus the zero interest are very generous and it's useful to have in place in case something comes up.
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jelly1000
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(Original post by ImNotSuperman)
Are student loans/grants given at the end of the semester?

I'm looking to avoid a student account because I don't think I'll need the overdraft or the other perks that come with student loans - railway discount etc. I want to switch a few times to get the bonuses that some banks are offering, for example First Direct offering £100 to join them, then £100 if you leave, and Halifax offering £100 and then £5 a month on top of that.

Do many students do this? Or do most just stick to their student accounts?
I think Klix and Kayleigh have answered your question well but I wanted to add that unless you have significant income from elsewhere first direct wouldn't be a good choice for a student- they charge £10 a month unless you pay in £1000 a month or maintain an average balance of £1000.
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bittr n swt
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Student finance for some isn't enough. Sadly it's not enough for me but luckily parents help out but they'll stop from second year. So I'll probably get a job or an overdraft
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somethingbeautiful
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Some people's loans/grants aren't enough to get by/some people don't budget properly/some have unexpected outgoings (e.g. emergency trip home - train fares, or laptop breaks - new laptop etc). If you're lucky your loans/grants should cover everything and if you budget properly and don't have make any unexpected payments then you should be fine. However, I'd advise you get an overdraft as a precautionary measure because if you don't have one and accidentally go overdrawn you can rack up some nasty debts when your bank charge you for being overdrawn + interest + plus the original amount. The overdraft prevents that scenario so it's best to have one for peace of mind in case you're too busy with uni work one week/month to keep an eye on your finances. You may never use it, but it gives peace of mind that if you accidentally spend money you don't have, you won't get charged for it.
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