Arranged Overdraft Confusion Watch

Hughcifer
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I'm applying for a student current account with Santander, and they say: "When you open your account you’ll get an Arranged Overdraft limit of £250" (which is increased later). I have two ideas on how this might work, but i'm not sure which, if either, is correct:

1. Once you reach £0 in your account, you automatically enter the arranged overdraft, from which you will use money (or must you request this first before it can happen?)
2. You ask for the overdraft and are immediately given all of the cash regardless of how much money you have in your account

I can't find anywhere that tells me how it actually works, so any replies telling me if one of my ideas is correct are much appreciated thanks.
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999tigger
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(Original post by Hughcifer)
I'm applying for a student current account with Santander, and they say: "When you open your account you’ll get an Arranged Overdraft limit of £250" (which is increased later). I have two ideas on how this might work, but i'm not sure which, if either, is correct:

1. Once you reach £0 in your account, you automatically enter the arranged overdraft, from which you will use money (or must you request this first before it can happen?)
2. You ask for the overdraft and are immediately given all of the cash regardless of how much money you have in your account

I can't find anywhere that tells me how it actually works, so any replies telling me if one of my ideas is correct are much appreciated thanks.
I would say once the account is open you are free to use the £250.
The rest of the od is subject to you asking and that will in turn rely on you starting to pay in your loan money £500 per term as in the conditions plus use it as an account.

Any agreed od is always the last money to be used, so they will apply against your current balance and when that is 0 they will then eat into your overdraft.

Hope that explains things.

When an account says od on application just realise they cna say no, so the top amount is more likely to be achieved by people who dont need it. It is not a given. Best od imo is Nationwide.
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Hughcifer
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(Original post by 999tigger)
I would say once the account is open you are free to use the £250.
The rest of the od is subject to you asking and that will in turn rely on you starting to pay in your loan money £500 per term as in the conditions plus use it as an account.

Any agreed od is always the last money to be used, so they will apply against your current balance and when that is 0 they will then eat into your overdraft.

Hope that explains things.

When an account says od on application just realise they cna say no, so the top amount is more likely to be achieved by people who dont need it. It is not a given. Best od imo is Nationwide.
Ah, this makes sense. Thanks for your response!
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