Stupid idea but can't see why it doesn't work

Go to bank A: open student account (as genuine student). Take maximum interest free overdraft in cash and put into an ISA (or similar interest bearing account, can get 3-5% on small amounts from a quick internet search, if you don't touch the money). Cut up the bank card/get a block placed on the account so no other transactions can take place.

Repeat for every bank you know. At least 10 public high street banks in the UK can do that, you probably have way more in the ex colony. student overdrafts are around the £3000 mark. Say 2,000, conservative estimate, 4% interest, for 4 years of university., = £800 free money per year, or over £3k per university fee. Will pay for your first year of rent.

P.S. checked on the internet, you only get caught if the account is inactive, so as long as you transfer £50 or whatever between the accounts every month, it wont flag up as an inactive account.

T

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Comments (13)

Jun 28, 2012 - 7:57am

can't wait to watch your episode on American Greed

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Jun 28, 2012 - 8:25am

Wouldn't surprise me if the overdraft facilities had some kind of maximum duration on them before interest payments were required, and ISAs with a high interest rate usually have 1-3-5 year fixed deposit periods. Also, £800 a year wont come close to paying your rent.

Jun 28, 2012 - 10:18am

A fellow student did exactly this in a non-European market and it worked for him. That was years ago though and interest rates were different. He also played with couple of credit cards he had and moved the balance around frequently. Overall he was busy moving funds around but he effectively made a profit.

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Jun 30, 2012 - 1:27am
Studiofan:
CanDo:
Why can't you just buy 30 day tbills with your credit card?

I hope this is a joke..
No broker takes credit card, the transaction fee is 1.9% to the seller on each purchase made with a CC.

go take a credit card and buy yourself a sense of humor

Jun 29, 2012 - 6:18am
FinancialNoviceII:
Will work aside from the fact that you're not allowed to open more then one student account at a time.

I don't know how enforceable that is... Friend of mine has got 4!
"So who lost the hundy?"
Jun 29, 2012 - 3:33pm

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I was taught that the human brain was the crowning glory of evolution so far, but I think it's a very poor scheme for survival.
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