The Student Room Group

HSBC Student Bank Account Overdraft

Hey, I've just set up a student bank account with HSBC and received a letter that covered the details of the overdraft facility.

I chose not to have a credit card for my account so I'm confused about the section titled 'Total Charge For Credit'.

The contents of that section are:

"An indication of the total charge for credit for this facility is £0. This figure is illustrative only and calculated upon the assumptions that you draw down the entire overdraft only once at the start of the facility and repay it in one amount after 3 months with no use of the account affecting the calculation. It includes overdraft interest and any applicable account fee."

Does this mean that I need to repay the money I use in my overdraft within 3 months of using it? Or can I use the overdraft and then repay it over my entire time at Uni without incurring any extra charge?
Why not ring up or pop into a branch? They will be able to give you a much better answer than anyone on here because it will be specific to the account you have.

Good luck!
Original post by MrDare360
Hey, I've just set up a student bank account with HSBC and received a letter that covered the details of the overdraft facility.

I chose not to have a credit card for my account so I'm confused about the section titled 'Total Charge For Credit'.

The contents of that section are:

"An indication of the total charge for credit for this facility is £0. This figure is illustrative only and calculated upon the assumptions that you draw down the entire overdraft only once at the start of the facility and repay it in one amount after 3 months with no use of the account affecting the calculation. It includes overdraft interest and any applicable account fee."

Does this mean that I need to repay the money I use in my overdraft within 3 months of using it? Or can I use the overdraft and then repay it over my entire time at Uni without incurring any extra charge?

Don't worry, I opened a HSBC student account when I started university.

You don't get charged for using the overdraft facility unless you go over the agreed amount. So say your overdraft is £500 you wont get charged unless you go overdrawn by more than £500.

And you don't have to pay the overdraft back until after you graduate, I think they give you a few months after graduation to pay it back maybe longer.

My advice though is avoid using the overdraft altogether as you'll end up spending it as if it was money you have and buy crap you don't need.
Reply 3
Original post by no-fat-chicks
Don't worry, I opened a HSBC student account when I started university.

You don't get charged for using the overdraft facility unless you go over the agreed amount. So say your overdraft is £500 you wont get charged unless you go overdrawn by more than £500.

And you don't have to pay the overdraft back until after you graduate, I think they give you a few months after graduation to pay it back maybe longer.

My advice though is avoid using the overdraft altogether as you'll end up spending it as if it was money you have and buy crap you don't need.


Okay, thanks for the help. I'm going to be increasing my overdraft as soon as possible regardless so I can buy the things I need for my course though. Not having to pay it back until graduation is helpful even though I should be able to pay it back before the end of my first year.

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