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Student Overdrafts

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
edited March 27 in Work & Study
Hey,

Been meaning to check this out for ages but havent got around to it so just to see if anyone here can help....

When you graduate do the overdrafts remain interest free for any amount of time or do you pay interest on them straight away? Or is it dependent on the bank as I really have no idea and figured it best to find out!

If anyone can shed any light it would be appreciated :)
Post edited by JustV on

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    My bank HSBC (like most other bank accounts) are intrest free till you :

    A) finnish uni
    B) Drop out
    C) Piss the bank off and they give you like a week to clear your overdraft

    Note that pissing your bank off is NEVER a good idea.

    Bopz
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Hi there

    It is best to check with your bank, but usually as long as you stick with them after you graduate they will have a graduate plan...

    I know with HSBC your interest-free overdraft is gradually reduced by, say, £500 a year, and if you go over this amount, as long as it is authorised you will be charged a small interest rate on the surplus.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I'm with HSBC and apparently it stays interest free for three years after you graduate.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    also..don't you have to not pay any till you're earning over £15,000 a year?
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Originally posted by lucifer devil
    also..don't you have to not pay any till you're earning over £15,000 a year?

    That's student loans...don't think it's the same with overdrafts.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Originally posted by .NK
    That's student loans...don't think it's the same with overdrafts.

    Yeh thats the loans, and they add interest onto student loans the day you leave! You have to start paying it back as soon as you earn over £10k.

    But for overdrafts...I'm with Natwest and they changed my student account to a graduate one. Not sure how long it remains interest free for but I graduated about 1.5 years ago and it's still interest free!
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