username2871748
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I'm going to apply to student account for uni and the max most of them go is £3000 in the third year for interest free.

Say I am -£1000 in the end. Will there be interest on the money after I finish uni? Or will there never be interest on it and I just have to pay it bank when I get a job?
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Blue_Cow
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(Original post by kurro)
I'm going to apply to student account for uni and the max most of them go is £3000 in the third year for interest free.

Say I am -£1000 in the end. Will there be interest on the money after I finish uni? Or will there never be interest on it and I just have to pay it bank when I get a job?
You talking about the overdraft?

Your bank (if they have one) will offer you a graduate account. Depending on the graduate account's terms, you might accrue interest on your overdraft for a while, but your interest free overdraft limit will slowly decrease.
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jameswhughes
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(Original post by kurro)
I'm going to apply to student account for uni and the max most of them go is £3000 in the third year for interest free.

Say I am -£1000 in the end. Will there be interest on the money after I finish uni? Or will there never be interest on it and I just have to pay it bank when I get a job?
Didn't you ask this the other day?

The overdraft will be gradually pulled back in, for example you might have £2000 interest free overdraft the first year after university, £1000 the second year and then a normal current account (no free overdraft) the year after that.

If you already think you'll be diving thousands of pounds into the overdraft before you've got to university, you're doing something wrong - it's a safety net, not free money.
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username2871748
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(Original post by Blue_Cow)
You talking about the overdraft?

Your bank (if they have one) will offer you a graduate account. Depending on the graduate account's terms, you might accrue interest on your overdraft for a while, but your interest free overdraft limit will slowly decrease.
It is either going to be HSBC or Barclays.

So what your saying is, after a while, they will ad interest?
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Blue_Cow
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(Original post by kurro)
It is either going to be HSBC or Barclays.

So what your saying is, after a while, they will ad interest?
You need to check the bank's terms and conditions yourself.

What I'm saying is that the interest-free portion of the overdraft will eventually be reduced year by year most likely and then they'll start adding interest in line with their terms.

I can't stress this enough - read the smallprint.

(Original post by jameswhughes)
it's a safety net, not free money.
Wish I could rep this 1000 times
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jameswhughes
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(Original post by kurro)
It is either going to be HSBC or Barclays.

So what your saying is, after a while, they will ad interest?
Yes, they’ll stop it eventually. I think you’re missing the purpose of an overdraft, it’s a safety net, you don’t have one so you can dig yourself into a hole intentionally.

You should avoid using it at all if possible, to be honest these £3000 overdrafts sound completely irresponsible and just like a good way for banks to make money when the fees kick in.
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username2871748
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(Original post by jameswhughes)
Yes, they’ll stop it eventually. I think you’re missing the purpose of an overdraft, it’s a safety net, you don’t have one so you can dig yourself into a hole intentionally.

You should avoid using it at all if possible, to be honest these £3000 overdrafts sound completely irresponsible and just like a good way for banks to make money when the fees kick in.
Thank you for the advice!
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username2871748
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(Original post by jameswhughes)
Didn't you ask this the other day?

The overdraft will be gradually pulled back in, for example you might have £2000 interest free overdraft the first year after university, £1000 the second year and then a normal current account (no free overdraft) the year after that.

If you already think you'll be diving thousands of pounds into the overdraft before you've got to university, you're doing something wrong - it's a safety net, not free money.
Yes, but I couldn't find the thread
I am an idiot.
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