Student account question?

Question

hypothetically, lets say i ave £1000 currently in my bank and my nxt accomodation fee is £1020... but i have a £200 overdraft. can the uni take some money from the overdraft? or would i have to tell my bank to take some money from the overdraft and add it to my account.

Answer 1

Your overdraft is automatic. If you buy something or have a standing order setup then say you have 100 in and a 200 over draft it would be treated as tho u had 300 in the bank, in terms of taking money out. Infact i think with most accounts that money with standing orders just gets taken out anyway but then of course ud have to pay a fee for not having an overdraft pre-arranged. You dont pay any interest on your student account overdraft up to the agreed amount or a fee for using it, however you do pay interest on any money over the agreed overdraft amount, and as with a normal account i think it would come out automatically. So if at some point in the year you think that the money in you account and agreed overdraft wont cover a payment, contact your bank and you can arrnage to have your nterest free overdraft extended by a certain amount. Quite a few of my friends needed to do this as students. But in short yeah the uni would take the money automatically, and ud jus be into spending hypothetical money in ure overdraft. Most ppl use their overdraft tho so wudnt worry. Works like this at the 3 or 4 major banks i looked into when choosing an account, HSBC, Natwest, Barclays etc. Student accounts are def setup like this, have one at the mo, and my bf's works like this too. They work differently to normal accounts! On a normal account ud have no overdraft unless you set one up with your bank. Every single person has an automatic overdraft to the same amount with a student bank account, tho u dont have to use it.

Answer 2

It depends on the exact terms of your bank account, but with my student account the university would have access that that two-hundred pound overdraft.

Answer 3

All banks that I have ever done business with including overseas banks, require you to authorize them to take out your money from your overdraft to cover your accomidation fee or for you to make prior arraingements in writing for them to do so.