Say I'm -500 in my overdraft then I put 2000 in the bank. Does this mean I'll only have 1500 to spend not the full 2000?
How does a student overdraft work? watch
Offline20ReputationRep:Section LeaderPeer Support Volunteers
- Section Leader
- Peer Support Volunteers
- 20-08-2016 23:34
- Community Assistant
- 21-08-2016 20:43
Yes, quite simply, that's how it works.
A student overdraft works as a normal overdraft - the difference being you don't pay interest (usually) whilst studying at university.
For example, in my first year, the bank gave me a £500 overdraft and then in my second and third year, it went to £1500. In this time, whenever I go into my overdraft, I don't get charged for being in my overdraft, as long as I pay it back after my time at university.
Yes, if you are -500 and you put £2000 back in, you'll have £1500 - you can spend the full £2000 but it just means you'll be back to -500.
Does this make sense?