Choosing a Bank Account
Before opening a student bank account it’s important to be aware of the motives and catches whilst choosing a bank. Here are 8 things you need to bear in mind as a student:
- Banks are desperate for you to choose them! Students are usually young and likely to have a decent financial future. Banks are more than happy to invest in students by giving them a range of incentives and freebies.
- Statistically, once a student has opened a bank account they will be loyal to them for the majority of their life. You need to bear the motives of banks in mind before you open an account.
And remember, you can always switch banks to get the best deal for you! - Try not to fall for the freebies too much (although some are worth it)
- The amount of interest-free overdraft should be your first priority. Students can borrow money throughout their degree with no interest until they graduate. This offer is better than anything else as a student, especially when money is tight.
- The advertised overdraft is often the maximum you can get in your final year. Depending on your credit rating, banks often fall short of offering students the full amount.
- Invest any unused overdraft in a flexible savings account. You will then earn interest on the borrowed money!
- Always be aware of the interest rates on the overdraft once you graduate
- Watch out for the bank charges for going overdrawn. Never spend beyond your means.
