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Student Overdraft...How Does It Work?
I've signed up for a Natwest Student account and hope to make good use of the overdraft which has a limit of £1,200 in my first year; not that I'm planning on using that much!
However, I have a few questions that I tried asking the bank assistant but she wasnt very good at explaining and I gave up.
Firstly, do I need to get authorisation from the bank everytime I use the overdraft facility?
Secondly, once I have my card and everything could I go out and use the overdraft straight away to buy uni books without putting any money into the account?
Thirdly, do I need to pay monthly payments into the account to pay off the overdraft, similar to a credit card? But obviously interest free.
I hope someone can clear this up for me, thanks!
However, I have a few questions that I tried asking the bank assistant but she wasnt very good at explaining and I gave up.
Firstly, do I need to get authorisation from the bank everytime I use the overdraft facility?
Secondly, once I have my card and everything could I go out and use the overdraft straight away to buy uni books without putting any money into the account?
Thirdly, do I need to pay monthly payments into the account to pay off the overdraft, similar to a credit card? But obviously interest free.
I hope someone can clear this up for me, thanks!
Free Money!
No on a serious note with natwest you get an interest free overdraft for however long your course is, and it goes up each year (you have to request for it to be put up each year) then after uni you pay it back gradually. I think you get an interest free year to do thi in before you start getting charged. hope that helps! Oh and you dont have to ask them when you need to use it.
No on a serious note with natwest you get an interest free overdraft for however long your course is, and it goes up each year (you have to request for it to be put up each year) then after uni you pay it back gradually. I think you get an interest free year to do thi in before you start getting charged. hope that helps! Oh and you dont have to ask them when you need to use it.
EatingOnlyApples
EatingOnlyApples
I've signed up for a Natwest Student account and hope to make good use of the overdraft which has a limit of £1,200 in my first year; not that I'm planning on using that much!
However, I have a few questions that I tried asking the bank assistant but she wasnt very good at explaining and I gave up.
Firstly, do I need to get authorisation from the bank everytime I use the overdraft facility? no - as long as they have given you the overdraft then you just 'use' it if you need it - usually overdrafts have a time limit (6 or 12 months) but this is a student account so it will stay on your account for the duration of your course or per year.. depends on the bank.
Secondly, once I have my card and everything could I go out and use the overdraft straight away to buy uni books without putting any money into the account? yes, as long as the overdraft is on your account then you can use it! as long as some money goes into the account or your loan goes into this account then all is well
Thirdly, do I need to pay monthly payments into the account to pay off the overdraft, similar to a credit card? But obviously interest free. as long as some money goes into the account then should be fine.. .it's not like a credit card - some banks specifiy that a certain amount of money has to be paid in ie: £300 every 3 months) but it depends on the bank... but if you have your loan going in then that will cover it
I hope someone can clear this up for me, thanks!
However, I have a few questions that I tried asking the bank assistant but she wasnt very good at explaining and I gave up.
Firstly, do I need to get authorisation from the bank everytime I use the overdraft facility? no - as long as they have given you the overdraft then you just 'use' it if you need it - usually overdrafts have a time limit (6 or 12 months) but this is a student account so it will stay on your account for the duration of your course or per year.. depends on the bank.
Secondly, once I have my card and everything could I go out and use the overdraft straight away to buy uni books without putting any money into the account? yes, as long as the overdraft is on your account then you can use it! as long as some money goes into the account or your loan goes into this account then all is well
Thirdly, do I need to pay monthly payments into the account to pay off the overdraft, similar to a credit card? But obviously interest free. as long as some money goes into the account then should be fine.. .it's not like a credit card - some banks specifiy that a certain amount of money has to be paid in ie: £300 every 3 months) but it depends on the bank... but if you have your loan going in then that will cover it
I hope someone can clear this up for me, thanks!
hope that helps
you will have an overdraft limit, you will need authorisation to extend that limit but apart from that no you use it as you please.
you dont pay it back until after you graduate (in steps the overdraft decreases for 2 years after grad).
with a student account you need to be putting in either your loan or a regualr amount of cash or they get angry
you dont pay it back until after you graduate (in steps the overdraft decreases for 2 years after grad).
with a student account you need to be putting in either your loan or a regualr amount of cash or they get angry
ok so i have had a student account for a month (early bird HSBC) but have not used it or put money into yet as im waiting for my student loan to go into it , once i have confirmed my place and upgraded to my student account could i use the overdraft (750-1000 i think) straight away or do i need to put money into it first ?
an overdraft is basically borrow money from the bank
eg
if you take out an overdraft of 500 from the bank the moment money from work or student finace comes in the bank takes back the overdraft you borrowed and then the process goes round in a circle once again
this is in regards to natwest bank not sure about other banks
and in terms of the natwest student credit card the limit at first is only 500, and any money you use, for it to be interest free it muct be paid back with 56 day of taking it out unless they start charging interest
eg
if you take out an overdraft of 500 from the bank the moment money from work or student finace comes in the bank takes back the overdraft you borrowed and then the process goes round in a circle once again
this is in regards to natwest bank not sure about other banks
and in terms of the natwest student credit card the limit at first is only 500, and any money you use, for it to be interest free it muct be paid back with 56 day of taking it out unless they start charging interest
Natwest give you 3 years interest free after you graduate on a decreasing balance.
I'll just jump in here with my own question... If i use a £500 overdraft putting my account in -£500 and then receive a credit of £1500 would that automatically pay off the overdraft or would I get the full £1500 in the account and have the ability to choose when to pay off the debt?
Original post by i_♥
I'll just jump in here with my own question... If i use a £500 overdraft putting my account in -£500 and then receive a credit of £1500 would that automatically pay off the overdraft or would I get the full £1500 in the account and have the ability to choose when to pay off the debt?
it will automatically pay off the 500 so your account will be +1000
you bank balance will only ever have 1 amount
if you want to play it that way then you will need a seperate bank account. although as long as the OD stands you could always withdraw the full 1500 again later
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