A wee question about overdrafts and savings accounts - HotUKDeals
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A wee question about overdrafts and savings accounts

cinoci Avatar
8y, 1w agoPosted 8 years, 1 week ago
Afternoon all, hoping you can help me out here, all help appreciated :)

If I have a student account with a interest free overdraft, and want to use this... But I also have a savings account and an ISA with the same bank are they likely to let me use my overdraft and keep my savings account and ISA? I have been in twice this afternoon, and they are telling me different things, I'm going back on friday again for a review. Anyway, am I likely to get my hands on the overdraft, or will I have to surrender my savings account?

Thanks in advance :)

P.S bank is RBS by the way :)
cinoci Avatar
8y, 1w agoPosted 8 years, 1 week ago
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1 Like #1
Each account is treated seperately so you should be able to keep both...as long as you are still a student. New terms and conditions say thy can withrdraw the overdraft at any time if they THINK you cannot afford it, if you have a savings account with them they have no grounds as long as the overdraft is less than the ISA.
#2
wendyak
Each account is treated seperately so you should be able to keep both...as long as you are still a student. New terms and conditions say thy can withrdraw the overdraft at any time if they THINK you cannot afford it, if you have a savings account with them they have no grounds as long as the overdraft is less than the ISA.


Thanks, sounds good, still a student, so no probs there.. To be honest I'm fed up with RBS, and their "customer reviews", I know the managers are pushed to sell things, but the last branch manager I dealt with is so condescending, and doesn't take no for an answer. And she is the same with everyone I know that uses that bank..

Anyway, thank you for your answer, will leave rep in a second :thumbsup:
1 Like #3
interesting dilemma,

can i take it that you are a student and have had this overdraft as part of a general student account package for some time.

if so, it is a shame that you have brought it to the banks attention. if you have an agreed overdraft then you are perfectly entitled to use it and dont have to ask their permission. You could have used it and I could almost guarantee that they would not find a problem. your concern does you credit morally, but the bank would not blink if the situation was reversed.

However, that being said, I can see no real grounds for any objections from RBS. Officially, an overdraft is to give your account financial flexibility. It is a short term borrowing. Your ISA is a long term savings plan and you cant dip in and out of it as you please so we are no comparing like with like. Your savings do not have that flexibility which is why you need the overdraft.

if they get funny with you, tell them you are really surpirsed in the current climate that they have chosen to alienate a saver at a time when they are desparate to attract them. As a point of irony, you could ask if they would be happier on the subject of the overdraft if you moved your savings to another bank. this would resolve the conflict.

but this is all speculation. If you are going in and hopefully meet someone you have not spoken to before, just have a chat to confirm the overdraft amount and terms. dont bring up the savings issues unless they do, the 2 are completely unrelated and you should stop worrying.

good luck
#4
Feel sorry for them, they have to sell insurance and savings accounts to get their points, if they don't get enough points they are marked as unsatisfactory on their revue an lose any bonuses.
banned#5
I am confused, why wouldnt you be able to keep all of your accounts?!
#6
ianstanley
interesting dilemma,

can i take it that you are a student and have had this overdraft as part of a general student account package for some time.

if so, it is a shame that you have brought it to the banks attention. if you have an agreed overdraft then you are perfectly entitled to use it and dont have to ask their permission. You could have used it and I could almost guarantee that they would not find a problem. your concern does you credit morally, but the bank would not blink if the situation was reversed.

However, that being said, I can see no real grounds for any objections from RBS. Officially, an overdraft is to give your account financial flexibility. It is a short term borrowing. Your ISA is a long term savings plan and you cant dip in and out of it as you please so we are no comparing like with like. Your savings do not have that flexibility which is why you need the overdraft.

if they get funny with you, tell them you are really surpirsed in the current climate that they have chosen to alienate a saver at a time when they are desparate to attract them. As a point of irony, you could ask if they would be happier on the subject of the overdraft if you moved your savings to another bank. this would resolve the conflict.

but this is all speculation. If you are going in and hopefully meet someone you have not spoken to before, just have a chat to confirm the overdraft amount and terms. dont bring up the savings issues unless they do, the 2 are completely unrelated and you should stop worrying.

good luck


Thanks for your input :)

I'm sorry that my first post obviously wasn't that clear. I am still a student, but I am looking to get an overdraft but in order to do so, it must be prearranged. So do you think it would be likely that they will allow me to have this whilst having ~£2000 in a savings account and £3600 in an ISA, or will they tell me to take a running jump and just transfer money from my savings account?
I think that what you have said makes sense, that in essence the overdraft would be seen as short term borrowing, but my savings are well...exactly that..savings.

So in short, you think they'll be fine with me having an overdraft?

Thanks again for your input, I'll leave rep in a second :thumbsup:

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