Permanently In Your Overdraft? Get Paid To Get Out Of It
We’re getting out of our overdrafts for good in 2024.
Overdrafts are both a blessing and a curse. While it’s great to be able to afford the basic things we need (and maybe a night out we don’t need here and there), when we’re low on cash it can be all too easy to get deeper and deeper into the overdraft hole.
While student bank accounts normally have large overdrafts and little penalties for being in your overdraft, being deep in the overdraft hole can be a tricky one to get out of. If you’re trying to improve your financial habits this year, there is an easy way you can get started on taking the steps to get out of your overdraft for good.
How can I get paid to get out of my overdraft?
A good hack to know about is that a lot of banks offer incentives such as free cash for switching to them. There is literally no catch with this—if you open a bank account with them and close your old one, they will transfer you free money into your account as a welcome gift which could help you get out of your overdraft.
First Direct currently offers a welcome gift of £175 and it’s really simple to switch. There’s no interest or trick with the free cash, it really is a welcome gift.
All you have to do is switch your account over and have £1,000 paid in within the first 3 months of opening the account. This could be a student loan payment or payments from a part-time job, but once you’ve paid in the money the free cash will be transferred into your account, which is a great incentive to get out of your overdraft for good.
Other bank accounts often offer similar incentives as well. However, First Direct is the best deal out there right now. Last year Nationwide ran a similar scheme offering £200 for new customers, so it’s a good idea to regularly research different banks and see what benefits you could get from switching to a new one, especially if your current bank account doesn’t offer you any incentives.
Remember that if you want to save money we have loads of discounts at Student Beans from fashion to food and tech so you can treat yourself without breaking the bank.
