Compare Student Accounts
There is nothing more important when going to University than getting your money right (besides getting the grades). This means choosing the right <a href=’http://www.studentvalue.co.uk/student-accounts.html’>student account</a>. This doesn’t necessarily mean going for the bank that offers the best <a href=’http://www.studentvalue.co.uk’>student</a> overdraft facility (although this is a very important factor ), but instead you should take your time to compare student accounts in order to find the best one.
Lets start off with talking about who can apply for a student account
Different banks have different acceptance criteria, so you may find that this may vary. The general rule however, is that you have to be a student registered at a University and you usually have to apply in your first year. Now don’t do what I did, don’t think “oh I’m doing the sensible thing by not getting a student overdraft because I’m already amassing enough debt with my student loan already, why should I risk going into an overdraft?” It’s good to have one so that the student overdraft is there as a safety net. Instead just be vigilant and manage your money effectively so that you don’t have to worry about sinking to far into your overdraft.
What are the benefits of a student account?
The main benefit is without a doubt the interest free overdraft. If you are the recipient of a student overdraft, you may find that you can have an interest free overdraft up to as much as £3,000 with certain banks. Most banks will opt to give you a much smaller overdraft limit initially and extend your interest free overdraft amount overtime, this is so you don’t go crazy in your first term and find yourself stuck with a huge overdraft. Another advantage is that it allows you to apply for a graduate account after you have finished studying. A graduate account is offered by most banks and is used as an account that will still offer you that 0% overdraft when you finish your course, so that you don’t have to worry about having to start paying interest on your student overdraft the minute you are no longer eligible for a student account (the time you cease to become a student).
What factors are important when finding the best student account for me:
Many of my friends decided to stick with their original banks when applying for a student account. This is very common as you already have a relationship with that bank and it is easy to move any direct debits over or any other arrangement you may have. However, by sticking with your current bank and not exploring the other accounts available, you may miss out on securing a better financial situation for yourself whilst you study.
As I discussed earlier in this article, the size of your 0% overdraft is probably the most important factor, as the larger the overdraft you get, the less you have to worry about getting charged if you have to buy that important text book near the end of term, or you have to go out for your best mates birthday (who am I to judge). Having said all this, the best account for you may not be the one offering the largest student overdraft, but may instead offer other services, such as discounted rail travel. Natwest used to do a very popular account that offered a free railcard, which in turn entitled the student to a third off rail travel. This account was extremely attractive to students who planned to go to Universities located far away from their hometown, but planned to frequently visit.
All of the different banks will put together a different package of discounts and include them within their student account, for instance, many banks will offer free student cover when you decide to opt for their student account.
As easy as it is to just stay with your current bank, I would definitely advise looking around and trying to find the best one for your needs, as this could be the difference between an easy and a stressful end of term when your budget in particular will be wearing thin.
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