Overdrafts how do they work? Watch

The Apprentice
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Hey all

Im opening a natwest bank account (student) tomorrow and need to use the OD asap.

How does it actually work, say if you got £0.00 balance in the account, does it go to -£100 when you withdraw £100 or something

also each time you want to use a OD do you have to do it in branch (if you can?) or can you also do it via the card.

edit

as the account will the opened tomorrow, natwest said i can start using it straight away. I understand it takes a few days for the card to come through the post, because of this will i be able to use the OD in branch? and can you use the OD as soon as the account is open or is there some more paper work which needs to be sorted?
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thegman89
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Yep your account will go into -£xxxx.

Being a Nat West account once it's opened you will need to apply for the overdraft which is up to £1,250 for 1st year students interest free which means you don't have to pay to borrow the money - however you will have to pay it back in the end!

If your account is -£300 and you then pay in £200 your balance will then be -£100.

Yes you can use your card (for purchases for cash machiene withdrawls).
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abcdefghijklmnopqrstuvwxyz
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what thegman said and also your interest is higher than usual i think
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The Apprentice
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thanks,

so say if in -£300
and i got paid £300 into the student account
would that bring the balance to £0 or something else

because of this iv got a current account from lloyds where all my wages, loans and grants go.

and hopefully the natwest one will keep going into negative figures (because i do not want any money to go in)
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alex-hs
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(Original post by abcdefghijklmnopqrstuvwxyz)
what thegman said and also your interest is higher than usual i think
If it's a student account, it's likely that the overdraft will be interest-free.
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thegman89
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Yep thats it. You'll need to read the fine print for student accounts as I *think* you need to have your loan - or some other regular income being paid into your student account otherwise they can close it and demand any money you owe them as it will be breaking their conditions.

Your card will take around a week to arrive, then your PIN a few days after that. you can use the account before that of course - online or in branch (you iwll need photographic ID).

As for the overdraft you need to apply for that - you might be ableto do it tat the time of opening - if not then it takes about a day or two to be applied after applying for it.
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abcdefghijklmnopqrstuvwxyz
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(Original post by alex-hs)
If it's a student account, it's likely that the overdraft will be interest-free.
oh ok sorry thought he just meant a normal overdraft. Maybe i should read the whole thread and not skim read it next time lol
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The Apprentice
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(Original post by thegman89)
Yep thats it. You'll need to read the fine print for student accounts as I *think* you need to have your loan - or some other regular income being paid into your student account otherwise they can close it and demand any money you owe them.....
thats with halifax, i found out you can open natwest with £0 deposit and nothing going in!


for the next guy,

the OD is interest free, and again interest free 3 years after you graduate. In that 3 years you have the chance to pay it back.

any money you dont pay back in the 3 years becomes a natwest loan (nothing to do with student account from now) and you get charged the crazy rates what ever they will be at the time
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thegman89
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(Original post by The Apprentice)
thats with halifax, i found out you can open natwest with £0 deposit and nothing going in!
Ahhh thats ok then! Just editedmy previous post about opening the account as well
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jennyng2000
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(Original post by The Apprentice)
thats with halifax, i found out you can open natwest with £0 deposit and nothing going in!


for the next guy,

the OD is interest free, and again interest free 3 years after you graduate. In that 3 years you have the chance to pay it back.

any money you dont pay back in the 3 years becomes a natwest loan (nothing to do with student account from now) and you get charged the crazy rates what ever they will be at the time
'You must use your account as your main current account and
deposit regular amounts by way of local education funding,
parental contribution, salary, student loan or other funding,
such as sponsorship or bursary.'

does that not mean you have to pay your student account in?
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The Apprentice
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(Original post by jennyng2000)
'You must use your account as your main current account and
deposit regular amounts by way of local education funding,
parental contribution, salary, student loan or other funding,
such as sponsorship or bursary.'

does that not mean you have to pay your student account in?

dno but you can just say you dont have a job, or put the money in and take it straight out,



anyway they wont close the account for no paying in any money
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thegman89
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(Original post by The Apprentice)
dno but you can just say you dont have a job, or put the money in and take it straight out,

anyway they wont close the account for no paying in any money
Those are the the terms and conditions and if you sign to say you agree to them of course they can close the account if they wish too....
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jennyng2000
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(Original post by The Apprentice)
dno but you can just say you dont have a job, or put the money in and take it straight out,



anyway they wont close the account for no paying in any money
well i meant, i have a halifax account, cant pay the loan in twice, it doesnt count if you take it out then put it in again you see
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The Apprentice
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(Original post by jennyng2000)
well i meant, i have a halifax account, cant pay the loan in twice, it doesnt count if you take it out then put it in again you see
how do u spend it then?
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jennyng2000
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(Original post by The Apprentice)
how do u spend it then?
i mean they will want your loan to be paid in by the student loans company, you can take it out, put not to cash it in elsewhere as a loan as it wont be from student loan company then
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EpsilonZero
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(Original post by The Apprentice)
the OD is interest free, and again interest free 3 years after you graduate. In that 3 years you have the chance to pay it back.

any money you dont pay back in the 3 years becomes a natwest loan (nothing to do with student account from now) and you get charged the crazy rates what ever they will be at the time
Sorry to question your judgement but could you perhaps provide a reference for this?
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flipshot
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(Original post by The Apprentice)
the OD is interest free, and again interest free 3 years after you graduate. In that 3 years you have the chance to pay it back.

any money you dont pay back in the 3 years becomes a natwest loan (nothing to do with student account from now) and you get charged the crazy rates what ever they will be at the time
They can still recall the overdraft at any time though if you are not following the terms and conditions of the account. They only have to give 30 days notice to do this.
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The Apprentice
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(Original post by EpsilonZero)
Sorry to question your judgement but could you perhaps provide a reference for this?

a fat middle aged bloke at the natwest branch in walsall town centre :p:


how do you reach the limit then of £1250?

if i went -£100, then i cashed in £100 for it to go to£0, and done that 13 times would that mean iv reached the limit

or does it just mean you cant go past -£1250
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thegman89
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(Original post by The Apprentice)
or does it just mean you cant go past -£1250
bang on there - you balance can never be less than -£1250 - until the next year in which case you will probably be able to increase the overdraft limit.
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The Apprentice
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(Original post by thegman89)
bang on there - you balance can never be less than -£1250 - until the next year in which case you will probably be able to increase the overdraft limit.
so natwest say year two will be £1400 od,

does that mean if you bank is already on -£1250, so you can only spend £150 more without being fined, or is it £1400 on top of £1250
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