What to look for in a student bank account
If you’re heading off to university this year – or you’re already there – the chances are, you’re going to need a student bank account.
Finding the ‘right’ student bank account isn’t as easy as it may seem, though… simply because there are so many to choose from.
So, to make finding the right student bank account for you that little bit easier, we’re going to take you through some of the things you should look for when it comes to making your mind up.
A debit/cash card
As a student, you might well be ‘fending for yourself’ for the first time. This means you’ll be doing all your own shopping (for essentials such as food) on a weekly/monthly basis.
You can pay for this shopping using cash, but it’s often more convenient to use a debit/cash card to make your purchases. For that reason, you’ll probably want to look for a bank account that comes with a debit/cash card.
What’s more – if you make your purchases using a debit card, you won’t be carrying as much cash around with you all the time… something which can make non-essential spending that bit more tempting!
Standing order/Direct Debit facility
You’ll need to pay some bills while living in rented accommodation. You can make one-off payments to clear these bills each month, but it’s generally easier to set up a Direct Debit or standing order to automatically settle the balance. For that reason, you should try and find a student bank account that offers you the option to set up Direct Debits and/or standing orders.
Interest-free overdraft facility
It’s likely that you’ll come up against some unexpected costs while studying – or you may simply find yourself running out of money before ‘payday’ comes around. That’s where an interest-free overdraft can come in handy.
Assuming you’re in part-time employment while studying, an interest-free overdraft can provide you with the money you need to cover your costs if you don’t have enough in your account before payday. Once payday comes around, it’s just a case of repaying your overdraft.
Just bear in mind that an overdraft is a debt that’ll have to be repaid – and it’s unlikely to remain interest-free for long once you’ve left university.
There are plenty of bank accounts available to students that aren’t necessarily designed just for students. For example, the thinkbanking account could be useful for students looking for help budgeting each month, with a personalised budgeting service being just one of the many features of the thinkbanking bank account. There is a set-up fee (£25) and a monthly management fee (£14.50) for this account, so it’s important to take a good look at the account’s benefits before you commit yourself.
If you’re unsure as to which student bank account to go for, this guide should have given you some useful pointers. If you would like a bit more help choosing, you should speak to an expert about your options.
