Will my student overdraft cover my first rent installment? Watch

Nicryptid
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I've just been approved for a student bank account at HSBC who I also have a current account with, the overdraft shows up as apart of my current account which is what all of my payment details for my student accommodation is attached to, does this mean that my first rent installment (which is due before my student loan is paid to me) will automatically be taken out of my overdraft? Or will I need to change some details for that to happen?

Sorry if it's a bit of an obvious question, I just want to be sure!
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Cazemma
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has your current account been changed to a student account or do you have 2 separate accounts?
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Nicryptid
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It appears to have changed? There's only the one account there which has all the same details but with an added student overdraft.
(Original post by Cazemma)
has your current account been changed to a student account or do you have 2 separate accounts?
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Cazemma
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(Original post by Nicryptid)
It appears to have changed? There's only the one account there which has all the same details but with an added student overdraft.
you don't need to do anything then 😊
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sinfonietta
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Find out what your overdraft is exactly. e.g. I've had my debit account for almost a decade and my overdraft is only £10!

Often students end up borrowing money from their parents for their first rent installment and then paying it back once their loan comes in.
Last edited by sinfonietta; 6 months ago
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Examsareoversoon
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If it's an arranged student overdraft they won't.
(Original post by ltsmith)
Be very cautious about going into your overdraft because in theory the bank could ask for it back a second after you've used it.
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Examsareoversoon
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I guess it's possible, but it's unlikely the bank would do that as it's not in their interest to so, knowing a student likely won't have the money. Of course, it's always better to avoid using the overdraft. If the OP uses their overdraft, they should pay it off as soon as their loan comes in.
(Original post by ltsmith)
Maybe your bank has different T&C but mine says in small print 'the bank may ask you to repay your overdraft at any time'. I also know many people who found themselves in a difficult situation of owning 1k+ to the bank when they have no money at all.
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Nicryptid
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Thanks for the advice guys. My overdraft is an arranged student overdraft of £1000 which I assume is for things like paying rent before I get my loan (or else I don't know why they would offer an overdraft at all if I had to pay it back immediately?)The first rent instalment is only £250 at the beginning of September and then a full installment is due early October after my loan is paid to me which will be more than enough to cover what was taken from my overdraft and the next installment.

Asking my parents for money is not an option so I'm hoping using my student overdraft will work 😬
(Original post by sinfonietta)
Find out what your overdraft is exactly. e.g. I've had my debit account for almost a decade and my overdraft is only £10!

Often students end up borrowing money from their parents for their first rent installment and then paying it back once their loan comes in.
(Original post by ltsmith)
Be very cautious about going into your overdraft because in theory the bank could ask for it back a second after you've used it.
(Original post by Examsareoversoon)
I guess it's possible, but it's unlikely the bank would do that as it's not in their interest to so, knowing a student likely won't have the money. Of course, it's always better to avoid using the overdraft. If the OP uses their overdraft, they should pay it off as soon as their loan comes in.
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martin7
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(Original post by Nicryptid)
I've just been approved for a student bank account at HSBC who I also have a current account with, the overdraft shows up as apart of my current account which is what all of my payment details for my student accommodation is attached to, does this mean that my first rent installment (which is due before my student loan is paid to me) will automatically be taken out of my overdraft? Or will I need to change some details for that to happen?

Sorry if it's a bit of an obvious question, I just want to be sure!
I can't see that it would be a problem, particularly if you've been with HSBC for a while.

As others have pointed out, it's standard in the terms and conditions of all bank accounts (not just student accounts) that overdrafts are repayable on demand. In practice, banks don't usually do this unless the relationship with the customer has broken down. If you're using the account within the terms and conditions of the account, you have very little to worry about.
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Nicryptid
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Thank you, that makes me feel a little more at ease! I've been with HSBC for almost a decade and have never had a bad experience or relationship with them. I know a lot of people who were at uni and were £500+ into their overdraft before the end of the first semester so I assumed what I planned to do would be okay 😅
(Original post by martin7)
I can't see that it would be a problem, particularly if you've been with HSBC for a while.

As others have pointed out, it's standard in the terms and conditions of all bank accounts (not just student accounts) that overdrafts are repayable on demand. In practice, banks don't usually do this unless the relationship with the customer has broken down. If you're using the account within the terms and conditions of the account, you have very little to worry about.
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