Results 1 to 6 of 6

Thread: Santander Student 123 Current Account Overdraft Questions

  1. #1

    Santander Student 123 Current Account Overdraft Questions

    I recently graduated but still have my student 123 current account.

    If my current balance is listed as 500 and my available is 2500, I presume that means I have a 2000 arranged overdraft set up. I'm looking to move places soon which will come with a first month rent + deposit up front and will need to dip into my overdraft.

    AFAIK the Santander 123 student account's overdraft is no-fee (potentially 1 a day? not 100% sure, read conflicting stuff online) and no interest.

    Is that correct? am I safe going into my overdraft and paying it off 30 days later when I get my pay cheque?

  2. #2
    If your current balance is 500 in credit and your available balance is 2500, then you have an agreed 2000 overdraft limit.

    You are perfectly safe as long as you stay within your 2000 arranged overdraft limit, then the borrowing is free with no fees.

    The above are conditional that you pay into your account at least 500 per term.

    If you exceed your overdraft limit, you will attract fees on each attempted or actual transaction which can add up very quickly if you use 'touch' for small purchases.

    Continued misuse (going over your overdraft limit) may result in cancellation of your overdraft facilities which then means your borrowing immediately starts attracting large interest rates and also hefty unauthorised transaction fees. If you cannot clear your overdraft balance, your account may be closed permanently. So it's imperative that you are responsible and keep a strict track on your finances.

    If you stay in credit without needing to use your overdraft, then your account balance will pay you interest between 1% and 3% per annum.

  3. #3
    I presume that I will keep the arranged overdraft until the end of the year then even if no money is paid in?

  4. #4
    Not sure to be honest. I doubt whether the IT systems would flag you up as a risk unless you go over your overdraft limit and start accruing charges.

    At which time it will be brought to an operators attention and someone gets involved to scrutinise your account, which may then cause you issues.

    Moral of the story, don't go overdrawn and do pay some money into your account regularly even if it's from a birthday or Christmas presents, as well as making sure your SFE loans go in to that account.

  5. #5
    I've just seen on their website that there is a graduate 123 account you can get where you don't need to pay in the 500 per term. I'll give them a ring tomorrow and have a chat about that. Thanks for the help!

  6. #6
    Moral of the story, don't go overdrawn and do pay some money into your account regularly even if it's from a birthday or Christmas presents, as well as making sure your SFE loans go in to that account.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •