The general condition is that you have to make student loan payments into them. Not a problem for me as they get paid into rbs and then transferred straight away into lloyds and then my savings account.
Nationwide
- Thread starter Wizzkidy
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The general condition is that you have to make student loan payments into them. Not a problem for me as they get paid into rbs and then transferred straight away into lloyds and then my savings account.
Soldato
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spot the banker\accountant in this thread. Bank don't do "nice gestures" or "favours" the only reason they do things for you is to make money plain and simple.
An ex bank employee summed it up pretty well " banks give you an umbrella when its sunny , and ask for it back when its raining"
Think that quote sort of rings true in this case ....
An ex bank employee summed it up pretty well " banks give you an umbrella when its sunny , and ask for it back when its raining"
Think that quote sort of rings true in this case ....
If you're referring to me, I'm neither. My use of quotes is rather intentional, to indicate that's what they'd have you believe.
The simple fact of it is, there is no such thing as a free lunch. Banks won't give you anything if there isn't a way for them to profit from it somehow. If they're profiting from it, that means you must be losing somehow.
Soldato
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I've been Nationwide since I've been old enough to have an account- they are a bit odd.
I occasionally went overdrawn because I kept forgetting to transfer money from the linked e-savings account to the card after spending on it- a pound here a fiver there. I'd get stung for unauthorised overdraft charges and interest but I didn't complain- I didn't have an overdraft and it was my fault I was overdrawn.
Then one day I got a letter telling me that I was being given an overdraft allowance. So now when this happens occasionally rather than getting hit with the unauthorised overdraft charge I get charged about 2p interest, making them less money. Go figure.
I occasionally went overdrawn because I kept forgetting to transfer money from the linked e-savings account to the card after spending on it- a pound here a fiver there. I'd get stung for unauthorised overdraft charges and interest but I didn't complain- I didn't have an overdraft and it was my fault I was overdrawn.
Then one day I got a letter telling me that I was being given an overdraft allowance. So now when this happens occasionally rather than getting hit with the unauthorised overdraft charge I get charged about 2p interest, making them less money. Go figure.
But they where making profit from my wife as everytime she went over the fee's would be paid when she got her wages (now and again anyway not every month)
It makes no sence.
I'm a student with a £1600 overdraft limit and am always £1000 overdrawn. Why? I'm earning interest on free money they're giving me. If they want it back, they can wait 7 days and my account will be positive again.
Of course they give this facility to students because the gaps between student loan payments can be large and spending isnt always even throughout the year. They also obviously hope that you continue to bank with them the rest of your life.
Of course they give this facility to students because the gaps between student loan payments can be large and spending isnt always even throughout the year. They also obviously hope that you continue to bank with them the rest of your life.
I disagree - banks aren't in the business of being nice, their job is to make money. Overdrafts are a good way of making money due to the high rates of interest typically charged on them.
You talk about it not being good financial management to be in your overdraft - that's fine, but it's not inherently WRONG for a customer to do so. The overdraft is NOT a 'just in case' provision, it's part of the standard service that the bank provides. Some people choose to use it, some don't. The bank can recall the service, obviously, but that doesn't make you a naughty boy for using it.
Don't get me wrong, I don't think being permanently in your OD is a good idea. In my entire life I think I've only ever been overdrawn twice, and one of those occasions was due to getting charged double for something. But that's simply because (interest free ODs aside), I don't think it makes good financial sense for me to be overdrawn, not because I think there's anything inherently wrong with it.
On a related note, anyone lucky enough to have an interest free overdraft would have to be crazy/lazy not to take advantage of it.
Wow.
http://www.halifax.co.uk/bankaccounts/studentcurrentaccount.asp
Halifax give a £3k interest free overdraft to students.
I have the natwest account and the best I can make off the overdraft (3 year course) assuming a 6.5% savings account is £293 while its £624 for the halifax account. While everyone won't be perpetually at the overdraft limit, its quite a big freebie.
http://www.halifax.co.uk/bankaccounts/studentcurrentaccount.asp
Halifax give a £3k interest free overdraft to students.
I have the natwest account and the best I can make off the overdraft (3 year course) assuming a 6.5% savings account is £293 while its £624 for the halifax account. While everyone won't be perpetually at the overdraft limit, its quite a big freebie.
Soldato
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Well said!
It's not free money (in most cases), but it IS there to spend.
Some people say that you shouldn't spend what you can't afford.
I say maybe the saying should be, don't lend what you can't afford.
At the end of the day, if you give someone a credit card, they are within their rights to spend on it. I work with a guy who lives his life from one payday/cashed cheque/borrowed tenner to next. He has multiple credit cards and knows exactly how much he's "got left" on each of them. He puts interest payments into his budgeting. When he gets paid, that just clears his overdraft, then his bills go out, and then whatever is left (up to his limit) is for spending.
A good idea for his long-term finances? Probably not. But it certainly doesn't make him a bad person.
Some people say that you shouldn't spend what you can't afford.
I say maybe the saying should be, don't lend what you can't afford.
At the end of the day, if you give someone a credit card, they are within their rights to spend on it. I work with a guy who lives his life from one payday/cashed cheque/borrowed tenner to next. He has multiple credit cards and knows exactly how much he's "got left" on each of them. He puts interest payments into his budgeting. When he gets paid, that just clears his overdraft, then his bills go out, and then whatever is left (up to his limit) is for spending.
A good idea for his long-term finances? Probably not. But it certainly doesn't make him a bad person.