Choosing The Right Student Bank Account
When moving on to higher education there are many things to consider. Choosing the right student bank account should be at the top of your list of priorities; even above finding out where the best pubs are! It’s not the most exciting aspect of student life I’ll admit, but it may well be one of the most important. Selecting the best option will give you a buffer in your not-so-solvent times and help you to avoid unnecessary charges.
Freebies Don’t Pay Overdrafts
Banks can be crafty – they try to tempt you with fleeting freebies and small cash rewards if you choose their student account. However, by far the most important benefit you will need is an interest free overdraft. Apply for the full amount – not so you can buy more booze, but as a ‘just in case’. In those few weeks leading up to the end of term, you may have inadvertently spent more than you should. Happy hour down at The Frog And Bucket always empties those pockets! And that fabulous ASOS sale was just too good to be true! Things can get a little tight money-wise and you need to be safe in the knowledge that you won’t be charged if you get a little overdrawn.
Wily Wording
Banks are fond of using wording which may not be clear when selecting an account. Always double check the terms. A ‘guaranteed’ overdraft means that you will have access to the full amount if you request the maximum when setting up the account. The term ‘up to’ means you may not be eligible for the full amount, depending on your credit rating. Be sure to check the wording so you aren’t caught out later on.
Thrifty Travel
You may be likely to be travelling by train or coach a fair bit; student life tends to put paid to the limos and private jets! Some banks offer a free rail or coach card when opening a student account. The cards provide a sizeable discount off travel and can be well worth a look, but do still check the overdraft limit. It is worth remembering that you can sometimes play the system a little. Opt for the rail card and once you get your code you could then switch to another bank offering a higher overdraft!
Be Savvy and Stooze
If you are good with money (there are a few amongst us!) and fancy making a few extra pennies, you could always take out the full overdraft amount and invest it into a savings account. This is known as stoozing and it could earn you a little interest. You won’t be making millions but as they say, every little helps. Do remember that the interest free period will run out at some point; don’t forget to repay the money before they start charging you!
It is worth taking your time to select the right student bank account. A good interest free overdraft is crucial and the right account will hopefully keep your finances on track and your parents’ savings safe!
