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is it legal to have 2 student bank accounts?? Watch

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    i opened one initially with one bank but their overdraft isnt big enough and i needed a bigger one as my loan wont cover my rent first time round, and the first bank wont extend it much so i opened a 2nd one.
    the 2nd bank knew i already had a student account and said i could open a new one as long as i cancel the first one eventually. the 2nd one has a much bigger overdraft and is much better for me with other benefits, but i just wodnered would it be legal to keep the first one open as a fall back or am i better off cancelling???

    oh and.. the 2nd account, the overdraft isnt available until end of august. so even if i intend on cancelling the first 1 and turning it back into a current account, i wanted to keep it as a student account until the end of august so that i have some kind of overdraft until the 2nd and bigger overdraft becomes available. so... is it legal to have 2 for a few weeks?
    sorry if this is confusing.just didnt want to mention banks names lol
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    You need to check the detailed terms and conditions of the specific accounts in question. Many (though not all) student accounts have specific terms stating that you cannot hold another 'student' account, or that your account with them must be your 'main' account - in each case, clearly you can only have one such account. Whether you'll be caught is debatable, but you should be aware that either (or potentially both) banks would be well within their rights to demand immediate repayment of any outstanding overdraft if you were found to be in breach of their T&Cs.

    If you feel you can post which banks you're talking about, we may be able to advise you better.
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    If you don't pay your student loan into their account, they'll revert is to a non-student status anyway.
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    its natwest and barclays. barclays is the smaller overdraft and natwest is the bigger one,
    i do intend on making my barclays account back to a current account anyway once the natwest overdraft becomes available at the end of aug n once i have my card/cheque book/online banking thing sorted, but if it isnt illegal then itd be good to keep the £200 barclays overdraft there incase i suppose??
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    (Original post by Dionysus)
    If you don't pay your student loan into their account, they'll revert is to a non-student status anyway.

    ooh really? maybe i should just leave it to them then as i plan on changing my loan details to the natwest account
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    They can't find out,and if they did. Banks don't really communicate, all they could do is start charging interest on your overdraft. or ak you to pay the full overdraft, i.e 200 quid back.
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    That doesn't mean it's not illegal to have two though! I'd check the terms and conditions carefully.
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    if anyone is bored enough to read any terms, go ahead. im so crap at understanding that stuff thats why i thought id ask incase someone knew already!!
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    1. Banks have T+C's, these are not laws but rules which you are supposed to follow when using the bank. Breaking these rules is not breaking the law, worst they can do is punish you as stated in their T+C's (fees for unauthorised borrowing etc) or close the account.

    2. They cannot enforce student loan payments. Not everyone is entitled to a student loan. As long as there's regular income/outgoings then they cannot complain (Halifax wanted a few hundred over a few month period). I had my student funding in one account and wages into another. Both banks were happy.

    If you treat both accouts as if it's your main (card payments, paying cash in over counter etc) then they are non the wiser and won't look into it.
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    (Original post by Steeps)
    1. Banks have T+C's, these are not laws but rules which you are supposed to follow when using the bank. Breaking these rules is not breaking the law, worst they can do is punish you as stated in their T+C's (fees for unauthorised borrowing etc) or close the account.

    2. They cannot enforce student loan payments. Not everyone is entitled to a student loan. As long as there's regular income/outgoings then they cannot complain (Halifax wanted a few hundred over a few month period). I had my student funding in one account and wages into another. Both banks were happy.

    If you treat both accouts as if it's your main (card payments, paying cash in over counter etc) then they are non the wiser and won't look into it.
    im having my wages into barclays and loan into natwest so maybe itll be ok then? hmmm!
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    wonder if it if fraud?

    http://en.wikipedia.org/wiki/Fraud_Act_2006

    "Fraud by false representation" is defined by Section 2 of the Act as a case where a person makes "any representation as to fact or law ... express or implied" which they know to be untrue or misleading.
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    if you do decide to keep both accounts, keep track of all ingoings and outgoings, my bf is currently struggling using two overdrafts..
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    i decided ill cancel the barclays one once my natwest one is all confirmed etc, sounds like too much hassle keeping both!!
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    (Original post by madeline06)
    i decided ill cancel the barclays one once my natwest one is all confirmed etc, sounds like too much hassle keeping both!!
    Sounds like a good idea to me. While I'm sure it's possible to get away with keeping both as 'student' account, I wouldn't recommend it. If nothing else, it's best to try to avoid getting into *too* much debt if possible!
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    I've had two massive overdrafts for two student accounts while I've been at university and it's never been a problem. Both banks are happy as long as money is going in and out of both of them so I have student loan go into one and wages into another. I honestly think you'll be fine. Although saying that I have no idea if it is illegal or not!
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    (Original post by Lollipoppers)
    I've had two massive overdrafts for two student accounts while I've been at university and it's never been a problem. Both banks are happy as long as money is going in and out of both of them so I have student loan go into one and wages into another. I honestly think you'll be fine. Although saying that I have no idea if it is illegal or not!
    As another poster said it isn't illegal but is likely against the T&Cs of the accounts. The most the bank could do would be close your account down and force you to repay the overdraft.
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    are there any benefits/incentives around? i remember there used to be free 5 year student bus pass, or something like that. my particular choice of banks are barclays or hsbc (seems the safest??) any suggestions as to the qualtity of the services at these banks? thanks!
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    (Original post by michy_witchy)
    are there any benefits/incentives around? i remember there used to be free 5 year student bus pass, or something like that. my particular choice of banks are barclays or hsbc (seems the safest??) any suggestions as to the qualtity of the services at these banks? thanks!
    The most popular at the moment is probably the five year railcard from NatWest, which they've been doing for a fair while now.

    Edit: This may not be completely up to date, but it's a good start to get an idea of what's around: http://www.thestudentroom.co.uk/wiki..._Bank_Accounts
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    (Original post by Dionysus)
    If you don't pay your student loan into their account, they'll revert is to a non-student status anyway.
    When I applied for student finance, I already gave details of my current non student account with Halifax for them to pay the loan into. But I intend to open an Natwest student account on results day- is it too late to change it? When can i change the details until?
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    You can change the details with the SLC at any time - not sure when the 'cut off' so to speak for the first payment is, but even if you miss that they'll take effect from the next payment. If worse comes to worse, just transfer it between the two accounts.
 
 
 
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