Tips for choosing a student current account
|April 25, 2012||Posted by Adam Grunwerg under lifestyle|
When it comes to being a student you can save yourself a lot of hassle further down the line by spending a few hours looking for the very best bank account for you. Often students take the “a bank account is a bank account” approach, but the problem is that they’re not all the same – there are some really good deals out there especially for students if you look hard enough.
Here are the top three tips for people searching for a student bank account:
- Check out the overdraft facility! You might not plan on going into your overdraft, but it’s always worth having just in case. The great thing about an overdraft on a student account is that lots of banks actually offer them interest free. Make sure you do a bit of searching however, and don’t forget to check how much overdraft they’re actually giving you. A 0% overdraft is great, but if it’s only £100 it’s not going to help you much. Remember most banks often do a tiered overdraft plan, where you get X amount in your first year, which is then increased in the second and third years. This forces you to budget, and to stay in control of your overdraft. Just remember that at the end of your studies you’ll have to pay back every penny – so don’t go racking up crazy debts.
- Look at the benefits that are included. Some bank accounts come with all kinds of benefits like phone insurance, travel insurance, free gig tickets, and much more. These kinds of bonuses are there to entice you, so make sure you see which bank is offering the very best bonuses at the time you’re looking for an account. The best deal tends to vary year to year as the different banks try to out-do each other.
- Consider the fees you’ll be paying if things go wrong. One of the things you need to look into when taking out an account is the fees you’ll pay if you go overdrawn by mistake. These fees can be astronomical, so make sure you take these into consideration when taking out an account.
Above are just some of the things you should consider when taking out a student bank account. The banks tend to change their student accounts each year, adding and taking away perks, so make sure you sit down and cross check what’s out there yourself because a lot of these comparison grids are in fact outdated.
When you come to the end of your studies don’t just resign yourself to the fact you’ve got to pay interest on your overdraft! Many popular banks are now offering special graduate accounts. They offer 0% overdrafts providing you pay off an agreed amount of your overdraft over a set period of time. A graduate account is a great way to say money on overdraft interest.
For more useful information on picking a current account and budgeting for your life as a student, take a look at StudentBanking.co.uk.
Adam Grunwerg works for StudentBanking.co.uk.