Choosing the best student bank account
Whether you’re off to university or sending your once little ones away, having a student bank account is a no brainer! Choosing the right student bank account can reap some saving graces for student living, but there are a few things to bear in mind when choosing the right account…
Interest free overdraft –
Possibly the most defining attribute of student bank accounts, overdrafts are one of the first things you should look at when weighing up you or your child’s options. Many students require to dip into their overdraft when the tight cash budget does not go to plan.
This may seem a scary concept at first but 0% overdrafts mean that you’re not going be paying an arm and a leg as a result of falling into your overdraft.
By choosing an account with the largest 0% overdraft means you are allowing some breathing space if the overdraft is needed. It must be said though, you should always ensure you do not spend over your limit otherwise you’ll be hit with a fine!
Everyone loves a freebie…
Most student bank accounts offer some kind of freebie to entice you in, this can range from travel discounts to shopping vouchers.
However, don’t let this be the defining factor of why you are choosing an account as they can cause you to turn a blind eye to other aspects of the account which aren’t so desirable.
Make sure to understand exactly what you or your child needs from the account and ensure the freebies don’t sway the opinion of what is actually needed. On the other hand, they are a great way to help decide between very similar accounts, in this case you should weigh up the usage of the freebie i.e. How much are you going to be travel by train?
Remember it’s not free money!
Sometimes using the overdraft is a necessity but it is best to stay out of it if possible, after all you are going to have to pay it back, so be wise with what you spend, ensure you only spend what you can afford!
Budget, budget, budget!
Budgeting is something students will have to get used to, it’s one of the most important parts of being able to live the life you wish at university, use our free Budget Planner to get started!
Bear this in mind…
If you're just about to head off to university, this may seem an age away! But it will fly by, so keep in mind that there are also graduate accounts which offer similar benefits, generally with lower 0% overdraft limits. This is something that some students dont realise when approaching graduation, so keep this in mind!