Halifax offers largest interest-free overdraft to students

Halifax is offering new students the largest interest-free overdraft on the market at present, according to a new study.

Financial data analyst Defaqto made the announcement this week after comparing a number of student current account deals.

Halifax customers can apply for an interest-free overdraft of up to £2,750 for five years – although the limit will be based on an assessment of creditworthiness.

And the bank is the only one to offer customers as much or more in year one as they do in year four.

However, Defaqto spokesman David Black believes that such offers “may soon become a thing of the past”.

“Banks are increasingly concerned about consumer debt and have to be seen to be lending responsibly,” he explained.

According to independent debt advice organisation Credit Action, consumer borrowing via such mediums as credit cards and unsecured personal loans rose to £4,515 per adult in July.

© Adfero Ltd

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