Banks and students, does any one bank come out best? Options

[Listener]

Both our daughters have had accounts at the same well-known high street bank as us. It's treated us and elder daughter well. It's not suiting the younger one so well. Have times changed?

Elder daughter was given an automatic ?1000 overdraft when she opened a student account some five years ago now. For reasons which still elude me, she opted to use an existing current account with no overdraft facility for day-to-day transactions, and when she once went overdrawn, a begging call to the bank meant the penalty payment was cancelled.

Younger daugher was given a ?100 overdraft. While I don't condone going overdrawn, she is banking cheques of far more than ?100 from time to time and doling out portions of it to other players in ensembles, and she's paying upfront for lessons and claiming back from various sources afterwards (sometimes a fair time afterwards because of the way systems work). This creates cashflow problems, e.g. with a small overdraft facility, she has to rely on people not banking their cheques for a day or two while the one she pays in clears.

Recently she didn't keep an eye on things and went ?3 over her overdraft limit - and put it right quickly (she has a fair amount in a savings account), but still got charged ?8. She took herself in to our local branch (where we have banked since 1976, not that I expect that to mean anything nowadays) and explained her predicament. The staff member she spoke to was sympathetic and together they put in a request for a larger overdraft facility. She heard today that had been turned down flat.

If she stays with this bank, I shall need to give her a substantial 'float' because her cash flow situation is not going to change. And that means taking it out of my own precious savings. So I wondered what people's RECENT experience with banks and student offspring is. (I say recent because a relative who until recently was with the Financial Ombudsman tells me that banks are much tougher than they used to be.)

Thanks for any help (and if this breaks the 'www' rule I apologise)

[serendipity]

100 pounds seems incredibly small for an overdraft on a student account these days, I thought 1,000 pounds was standard. Most banks increase so that for the 3rd or 4th year it is slightly higher.

My daughter has a student account with smile, I think her first year overdraft is 1,000 pounds, I will ask her just to confirm. I have a smile account too, have had one for many years, and they are very efficient and friendly.

[andante]

It might make a difference if you were to guarantee it for her.

[Little Elf]

Don't know which bank you're with at the moment but the well known one beginning with H and ending in X is working well with some of my friends/relations. The overdraft limit technically goes up to 3000 but that limit isn't guaranteed - it might be lower to start with. The people I know started with limits of 1000 ish.

[Misti]

I'm a bit baffled as to why any student wouldn't open a student account. The overdrafts are interest free as standard, and normally increase by ?500-?1000 per year at uni. Its a cheaper way to borrow money than a student loan: You pay interest on a student loan from Day 1, whereas the student overdraft facilities usually remain free and charge no interest for 1 or 2 years after graduation...

They also help create your credit rating: many young people don't have one, and hence find it difficult to obtain finance e.g. for car purchases / mortgages down the line.

[all ears]

I'm interested to hear about student banking too, preferably with actual bank names (IMG:style_emoticons/default/biggrin.gif) since I'm not British! DS1 Airman is likely to be in the UK on exchange later this year, and I think he will probably need to open an account with a British bank. We know nothing about student banking in the UK.

[Tenor Viol]

I'm interested to hear about student banking too, preferably with actual bank names (IMG:style_emoticons/default/biggrin.gif) since I'm not British! DS1 Airman is likely to be in the UK on exchange later this year, and I think he will probably need to open an account with a British bank. We know nothing about student banking in the UK.

I've sent a PM.

[Floss]

My bank has been great whilst I've been a student, always very accommodating if I ran into difficulties. There is only one branch in York, but that suits me fine as I prefer to use internet banking when I can anyway. (IMG:style_emoticons/default/smile.gif) Not sure we're allowed to say which one we use though...!

[Listener]

Thanks to everyone who's replied. I'm getting the idea that we've come up against something unusual and it's time to look at greener fields (than the turquoise one we're currently in... although I dopn't want to cast too much mud because it's not my experience otherwise of said bank) If anyone feels able to PM me with names of ones which they've had good experiences of, where your're not happy to give details online, I'd be grateful, but will understand any reluctance

Misti - I thought banks were interested in students too which is why I've been baffled that Daughter is having a hard time, especially getting a standard student level overdraft especially given the reason she asked for it - not overspending but money flow management, v responsible attitude I thought, clearly I'm not a banker. Andante, the guarantee doesn't seem to be the issue; they said she didn't need an overdraft. Duh... she'd just gone a tad over her limit because she didn't get around to banking some cheques.

[Tenor Viol]

Thanks to everyone who's replied. I'm getting the idea that we've come up against something unusual and it's time to look at greener fields (than the turquoise one we're currently in... although I dopn't want to cast too much mud because it's not my experience otherwise of said bank) If anyone feels able to PM me with names of ones which they've had good experiences of, where your're not happy to give details online, I'd be grateful, but will understand any reluctance

Misti - I thought banks were interested in students too which is why I've been baffled that Daughter is having a hard time, especially getting a standard student level overdraft especially given the reason she asked for it - not overspending but money flow management, v responsible attitude I thought, clearly I'm not a banker. Andante, the guarantee doesn't seem to be the issue; they said she didn't need an overdraft. Duh... she'd just gone a tad over her limit because she didn't get around to banking some cheques.

I suspect as noted elswhere that part of the issue (from what you posted above) is that she does not have a "student account". Student products are structured and managed differently from the mainstream accounts that the rest of us tend to have. The issues may stem purely from not having the right product. Most banks, especially larger branches in bigger towns and cities, will have someone who specialises in students and it may help to speak to such a person.

[Listener]

Thanks to everyone who's replied. I'm getting the idea that we've come up against something unusual and it's time to look at greener fields (than the turquoise one we're currently in... although I dopn't want to cast too much mud because it's not my experience otherwise of said bank) If anyone feels able to PM me with names of ones which they've had good experiences of, where your're not happy to give details online, I'd be grateful, but will understand any reluctance

Misti - I thought banks were interested in students too which is why I've been baffled that Daughter is having a hard time, especially getting a standard student level overdraft especially given the reason she asked for it - not overspending but money flow management, v responsible attitude I thought, clearly I'm not a banker. Andante, the guarantee doesn't seem to be the issue; they said she didn't need an overdraft. Duh... she'd just gone a tad over her limit because she didn't get around to banking some cheques.

I suspect as noted elswhere that part of the issue (from what you posted above) is that she does not have a "student account". Student products are structured and managed differently from the mainstream accounts that the rest of us tend to have. The issues may stem purely from not having the right product. Most banks, especially larger branches in bigger towns and cities, will have someone who specialises in students and it may help to speak to such a person.

Yes she does, that is what is so irritating - we thought at the time it would be the best choice; I can trs ???s at the push of a button and they'd always been v reasonable with her sister. If she didn't already HAVE a student account she could open one up at Nat West and keep the accounts with our bank too - but I believe a student can only hold one student account. However, following your advice, I will suggest she goes into her nearest branch in the city where she is studying and ask what's gone wrong (large student pop there - as distinct from our neck of the woods). Thanks v much. Will she find time? I will wait and see

EDIT that's 'pounds sterling' at the drop... etc.

[Tenor Viol]

Thanks to everyone who's replied. I'm getting the idea that we've come up against something unusual and it's time to look at greener fields (than the turquoise one we're currently in... although I dopn't want to cast too much mud because it's not my experience otherwise of said bank) If anyone feels able to PM me with names of ones which they've had good experiences of, where your're not happy to give details online, I'd be grateful, but will understand any reluctance

Misti - I thought banks were interested in students too which is why I've been baffled that Daughter is having a hard time, especially getting a standard student level overdraft especially given the reason she asked for it - not overspending but money flow management, v responsible attitude I thought, clearly I'm not a banker. Andante, the guarantee doesn't seem to be the issue; they said she didn't need an overdraft. Duh... she'd just gone a tad over her limit because she didn't get around to banking some cheques.

I suspect as noted elswhere that part of the issue (from what you posted above) is that she does not have a "student account". Student products are structured and managed differently from the mainstream accounts that the rest of us tend to have. The issues may stem purely from not having the right product. Most banks, especially larger branches in bigger towns and cities, will have someone who specialises in students and it may help to speak to such a person.

Yes she does, that is what is so irritating - we thought at the time it would be the best choice; I can trs ???s at the push of a button and they'd always been v reasonable with her sister. If she didn't already HAVE a student account she could open one up at Nat West and keep the accounts with our bank too - but I believe a student can only hold one student account. However, following your advice, I will suggest she goes into her nearest branch in the city where she is studying and ask what's gone wrong (large student pop there - as distinct from our neck of the woods). Thanks v much. Will she find time? I will wait and see

EDIT that's 'pounds sterling' at the drop... etc.

There will definitely be a student liaison type person in a uni town!

[all ears]

Thanks from me too for useful information. Tenor Viol, your PM may have gone astray...

[Misti]

I think it got sent to me instead... so easy to hit the wrong button. I'll forward the message on! I thought it was probably a mis-send, but hadn't got around to trying to figure out who it was intended for.

[Tenor Viol]

Oops... sorry about that. Apologies for the inconvenience.