Tip 2 – Student Bank Accounts

Who has a bank account picked for them by their Mum, Dad or guardian at home? Most of us do! But now is the time to be proactive and choose a bank that is going to directly benefit you.  

There are lots of accounts specifically designed for students, with beneficial features created with you in mind.  

What should you look at?  

1) Overdraft options.  

An overdraft is when the bank allows you to spend more money than you have – so your balance can dip below zero. It’s a form of borrowing.  

49% of students use an overdraft, and although it’s always best not to borrow if you don’t need to – at some point in the three years or more at university, you may find that it’s a needed resource. Read more about if an overdraft is a good idea for you here. 

Many student accounts offer 0% overdrafts – this means they do not charge you for having an arranged overdraft. Anything you borrow, you simply pay back with no added interest.  

However, as soon as you leave university your bank will start charging interest. This means the larger your overdraft at graduation, the more interest you will be paying. 

Arranged overdrafts on student accounts are often for differing amounts. Think about what you will need to use.  

Remember – overdrafts are not free money! You will need to pay it back.   

2) Extra incentives 

Some accounts offer things like railcards, free subscriptions, or free cash for joining their bank! Have a look around and see what could benefit you best.