I have a student account with Lloyds Tsb, I want to have an overdraft (interest free), a question?
If i have an overdraft of say £300, (this is to tide me over between one payment of student loan till the next), can i take out this money if i run out of money in my bank account? E.g. if i have no funds in my account, can i use my debit card and take the money out of the cash machine? I know it sounds a silly question but i’ve never needed to have an overdraft facility before… thanks!
Thanks guys, it is irritating trying to make the money stretch (really stretch), i’ve applied for so many part time jobs down here in cornwall with no luck over the past 6mnths. Its gone from 10 jobs a week available to one or two but needing experience. arh!
Its an interest free one, as Lloyds use it to lure students in
if you have an overdraft its like having an account in credit. That is if you have £500 overdraft, its just like money, so you can spend it by taking it out of the cash machine or on a Direct debit or using your card etc etc. BUT do not go over the limit of your over draft that is if your limit is £500 and you spend £500.01 then suddenly you have to pay interest on the whole plus penalty payments which suddenly mount up to quite alot. For one letter you will charged about £25 just for the letter telling you have gone over your limit. Also although they may have told you when you opened your student account that you can have an overdraft, make sure it has been applied for and authorised. Or you will get charged again. So check with your bank that your overdraft has been authorised and that it is interest free and pay your bills.
