An overdraft is where the bank lets you spend more than you've got (at no extra cost), up to a set amount. Often banks charge hefty fees and interest for the privilege, but student account overdrafts are interest-free.
What are the disadvantages of a student account?
Low interest on positive balances: Compared to most savings accounts, student accounts do not actually allow you to make interest on your bank account balance. Interest free overdraft: This may sound odd as it is also listed as an advantage but and the interest free overdraft can sometimes be too tempting.2 Aug 2016
Is HSBC student overdraft guaranteed?
Does HSBC allow you to have an overdraft on your student account. HSBC gives you a guaranteed interest free overdraft of £1,000 on opening of their student account. You can request an increase to £2,000 in your second year and £3,000 in your third year, but these are subject to status and account conduct.29 Mar 2019
How long can you have a student overdraft for?
around two to three years
How long can you stay in student overdraft?
You should be able to have a student overdraft for around two to three years. After you graduate, your account may automatically switch to a graduate account and you should have 2-3 years to pay back the interest-free overdraft.
How long do you have to pay off a student overdraft?
You'll have to pay off the overdraft eventually, usually after two or three years. The way banks try to encourage this is to reduce the maximum 0% overdraft each year the idea being that by the time the 0% ends, you'll have paid it off.
How long do you have to pay off student overdraft Santander?
You can reduce or cancel your arranged overdraft facility at any point in Online Banking, by calling us or in branch. If you cancel your arranged overdraft you must repay the money that you have borrowed under your arranged overdraft as soon as possible and no later than 30 days after you cancel it.18 Dec 2019
How long can you be in overdraft for?
This means that you can add to an existing overdraft (so long as you remain within your authorised overdraft limit) or pay it off completely one day, then dip into it the next. Overdrafts are available for as long as the bank authorises them, and for as long as you pay the fees and charges that they incur.