Choosing the right student bank account
As a student, it’s a good idea to shop around for banks. Don’t be lured by incentives as it’s better to find long term benefits offered to students.
To open a student bank account, you need to complete an application. You can do this in the bank itself or online. You will have to prove you are a student by, for example, showing a copy of your student card.
What types of students are eligible?
Student accounts are only available to full time students who are over the age of 18. You must be studying for a degree or equivalent qualification at university, college of further education, teacher training, nursing or agricultural college.
Student bank accounts are not available if you are still at school or studying for your A levels. You can only legally take on your own credit commitments when you are over the age of 18.
The benefits
Student bank accounts offer benefits that are exclusive to students. These can include:
Interest-free overdrafts
Many banks recognise that money is tight for students, so they offer interest free overdrafts up to a certain amount. This amount tends to increase each year you are studying.
Additional borrowing
If you need more money than your current overdraft limit, you may be able to borrow at a special low interest rate.
Free banking
Most normal banking charges are waived for students.
Debit card
You will probably be offered a Switch or Visa Delta card when you open an account. These can be used at cash points, in most shops and mean you can spend what’s in your account.
Credit card
You may be offered a credit card, such as Visa or MasterCard. But think carefully about whether you should get one, as you could easily run up a debt and then incur high interest charges.
Travel facilities
Banks may offer commission free currency and / or travellers cheques. This could be handy if you plan to go away in your breaks.
Insurance
Many banks offer personal insurance, which covers items like clothes, books and stereos.
Other incentives
Banks may offer free gifts to get your business, such as CDs or cinema vouchers. Think about the long term benefits of these incentives. A £50 reward might sound great, but a rail card might actually be worth more in the long term.
What about cash?
You’ve got your student bank account and now you need some money to put into it. If you’re looking at taking out a student loan to help you through your course, you should consider the other options open to you too. More loan options for students.
Finding the right student bank account is easy
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